S. Korean personnel at Kaesong unlikely to return home on Wednesday

SEOUL, May 1 (Yonhap) -- The last group of South Koreans staying in Kaesong to settle overdue wages and corporate tax claims is unlikely to return home Wednesday due to the need to iron out minor differences, the government said. Unification Ministry spokesman Kim Hyung-seok said in a news briefing that the seven-person team at the Kaesong Industrial Complex is engaged in talks with North Korean representatives to reach an understanding on how much money South Korean companies owe the North. He said Seoul is also in the progress of calling on the North to allow finished products and industrial materials to be handed over to its owners. Originally, the South wanted to withdraw all of its personnel on Monday, but objections raised by Pyongyang prevented this move. "There have been gains made to bridge differences, although the pace of progress has not met expectations," he said. The official said because of the slow pace more time is needed to reach complete understanding. Seoul has been reluctant to elaborate on the demands being made by the North, but wages that should have been paid to the 53,000 laborers for March may reach US$7.2 million, with additional claims likely to push up the total to around $8 million, according to some estimates. Kim said the government's stance is that while the North is responsible for the halt in operations that forced the pull out of 123 South Korean companies from the inter-Korean economic zone last month, it is still willing to meet all obligations as outlined in regulations governing the operation of the complex. North Korea unilaterally barred entry of South Korean nationals and materials into Kaesong on April 3, and followed this move by ordering all of its laborers not to report for duty six days later, which halted all production at the complex that first started churning out products in late 2004. The spokesman, in addition, reiterated Seoul's long held view that the only way normal operations can resume at Kaesong is for the North to rescind all of its unjust decisions and choose the right path. "Pyongyang needs to understand that its actions were unreasonable and take necessary action that can permit normal operations to resume," the official stressed. He pointed out that the country needs to think "long and hard" on this and keep in mind Seoul has made clear that the channel of dialogue remains open. This statement is effectively a repeat of what Unification Minister Ryoo Kihl-jae said on Tuesday. "Our proposal to hold talks to settle the Kaesong issue remains unchanged so we hope the North will make the right choice and enter a path of change," he urged. He reaffirmed that Seoul views the industrial zone as instrumental for advancing future cross-border relations. On concerns that the seven people are being held as some kind of hostage, Kim clarified that they were there because there is a valid reason to resolve outstanding issues. "Once all such matters have been handled, they will return as soon as possible," he said. The ministry official said besides settling accounts Seoul is moving to alleviate the plight of South Korean businesses forced out of Kaesong. "Many actions have been taken by the government to help, with the plan to use the inter-Korean cooperation fund as a means to provide special loans to companies in the last stage of discussion," he said. There have been reports of some companies complaining that they don't have the means to pay the North, which may entail the government to cover the cost instead. Meanwhile, once the seven-person team returns home, it will mark the suspension of all economic links between the two Koreas. South Korea had already cut most ties with the North after the sinking of one of its warships in the Yellow Sea in March 2010. yonngong@yna.co.kr (END)