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SEOUL: There was no evidence that North Korea had actually diverted earnings paid to its employees by South Korean business running in now-suspended commercial park on their border to its weapons programs, a South Korean authorities stated on Thursday.The assertion

by the official in President Moon Jae-in’s government was a reversal of the contention by the previous government that most of the cash that flowed into the collectively run Kaesong job was diverted to North Korea’s military.South Korea suspended the operations at the commercial park, just on the North Korean side of their common border, where South Korean factories employed North Korean employees, in 2015 after the North released a rocket that put an item into orbit.At the time, South Korea stated it would not allow the funds paid at Kaesong to be utilized in the North’s rocket and nuclear programs.”The previous federal government said repeatedly that Kaesong salaries were diverted by the North but I can say the government does not have any basis for this,”the senior government authorities told reporters on the condition of anonymity.The liberal Moon came to power in May winning a breeze election called after the elimination of his predecessor, Park Geun-hye, whose conservative government implemented a hardline policy against the North.Park was forced from power this year over a corruption scandal and is now on trial.Moon was elected in May on a plan to participate in talks with North Korea.He had pledged to reopen joint business projects with the North, consisting of Kaesong, but has actually modified that

position by stating there should initially be progress on suspending North Korea’s nuclear programme.About 120 South Korean business paid about double the US$ 70 a month base pay in North Korea for each of the 55,000 employees worked with in Kaesong.The project resulted from the very first inter-Korean top meeting in 2000, when leaders of the 2 Koreas promised reconciliation and cooperation.But by in 2015, it was the last staying sign of that effort in the middle of deteriorating cross-border ties.Park’s conservative government said 70 percent of the United States dollars paid as salaries and fees at Kaesong was directed to the North’s ruling party.It said different sources had confirmed the flow of loan however it did not define who they were.(Reporting by Christine Kim; Writing by Jack Kim; Modifying by Robert Birsel)

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http://www.channelnewsasia.com/news/asiapacific/south-korea–no-proof-cash-to-kaesong-went-to-north-korea-arms-programmes-9028922