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   N. Korea Government Reportedly Took 70% of Money Paid for Kaesong Workers

   by Reuters

   South Korea said on Sunday that 70 percent of the U.S. dollars paid as
   wages and other fees for the now-suspended Kaesong industrial project
   run jointly with the North had been diverted for use in Pyongyang's
   weapons program and luxury goods for its leader.

   It is the first formal acknowledgement by the South that the 54,000
   North Korean workers at the Kaesong complex saw little of the $160 they
   were paid on average a month. South Korea on Wednesday suspended the
   project as punishment for the North's long-range rocket launch Feb. 7,
   saying it would no longer allow the funds paid to Kaesong to be used in
   the North's missile and nuclear programs.

   The North conducted its fourth nuclear test last month.

   The North called the South's move to suspend operations "a declaration
   of war," kicking out all South Korean workers Thursday and freezing the
   assets of the South Korean firms.

   "The wages for the North's workers and other fees were paid in cash in
   U.S. dollars to the North's authorities and not to the workers," South
   Korea's Unification Ministry said. "This is believed to be channelled
   in the same way as other foreign currency it earned."

   The cash is then kept and managed by the ruling Workers' Party's Office
   39 and other agencies, the ministry said. The ministry said it had
   confirmed the movement of the money through various sources, but did
   not specify them.

   Office 39 is widely believed to exist to finance the luxurious
   lifestyle of the North's leader. The office is also believed to be part
   of the North's agencies that fund the country's missile and nuclear
   program.

   Kaesong's North Korean workers were given a taste of life in the South,
   working for the 124 mostly small- and medium-sized manufacturers that
   operated there, about 54 km (34 miles) northwest of Seoul.

   The minimum wage for North Korean workers was about $70 a month,
   although the companies paid more than double that amount after overtime
   and bonuses, although that payment is low compared to the cost of labor
   in the South.

   The Kaesong project was born out of the first summit meeting of the
   rival Koreas in 2000, where their leaders pledged reconciliation and
   cooperation. It was the last remaining symbol of that effort in the
   volatile North-South ties over the years.

   Kaesong had been shut only once before, for five months in 2013, amid
   heightened tensions following North Korea's third nuclear test,
   although its continuing existence often seemed tenuous.
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   song-workers/3190267.html

References

   1. http://www.voanews.com/content/north-korea-government-money-paid-kaesong-workers/3190267.html