ROK regrets DPRK's abolition of wage limit at industrial park

SEOUL - The Republic of Korea (ROK) on Monday expressed regrets over the Democratic People's Republic of Korea (DPRK)'s unilateral abolition of a minimum wage hike limit for workers at an inter-Korean industrial complex in the DPRK's border town of Kaesong.

Unification Ministry spokesman Lim Byeong-cheol told a press briefing that it was regrettable for Pyongyang to unilaterally violate an inter-Korean agreement, saying the wage system should be handled through inter-Korean consultations as the two sides agreed to improve the system in accordance with international standards.

The comments came after the DPRK announced its decision at the weekend to abolish a 5-percent annual limit to wage increases for 53,000 DPRK workers at the Kaesong Industrial Complex.

In August last year when the joint factory park's operation was normalized after a five-month suspension, the two Koreas agreed to improve the wage system in accordance with international standards through an inter-Korean management committee. Annual wage increases at the complex have been restricted to 5 percent a year.

Currently, the DPRK workers are paid about $70 a month, with their annual wages having risen 5 percent every year since 2007. Including allowances and incentives, the wages reach some $130, about 50 percent higher than an average income of DPRK people, according to local media reports.

Lim said the DPRK has yet to inform the ROK of its decision, adding that the government will decide on its countermeasures after confirming details on the move.

The Kaesong factory park, the last remaining symbol of inter-Korean economic cooperation, was launched in 2004 to combine the DPRK's cheap labor and the ROK's capital. About 120 South Korean small companies operate factories there.