Tensions are rife in the Korean peninsula

Tensions between the two Koreas continue to escalate as the two states have now severed economic ties.

Kaesong Industrial complex, the last remaining inter-Korean joint venture has come to a close following a decision from South Korea.

On Wednesday, the country announced plans of closing the industrial complex amid heightened tensions following North Korea’s recent rocket launch.

In response to this, North Korea expelled all South Korean workers from the industrial zone and also froze the assets of companies in the complex.

The North further called South’s decision to suspend activities in the area as a ‘declaration of war’.

The complex housed 124 South Korean companies which employed about 55,000 North Koreans.

South Korea says that North Korea will be held accountable for any consequences moving forward.

“(North Korea) expelled our people in a very short time and did not allow them to bring products (from factories in Kaesong) while illegally freezing valuable assets,” South Korean Unification Minister Hong Yong-pyo said.

“The North’s conduct is very regrettable and we make it clear that the North will be responsible for everything that happens,” Hong added.