Why North Korea cut its last economic tie to South Korea: 3 theories

The Hermit Kingdom's leaders need the money they make from the Kaesong industrial zone. Yet they're still shutting it down

Entry to the Kaesong Industrial complex in North Korea.
(Image credit: REUTERS/Kim Hong-Ji)

North Korea announced Monday that it is pulling its 53,000 workers out of the Kaesong factory complex, which it operates with South Korea. Pyongyang said it was suspending operations in the industrial zone, which is just inside the North Korean side of the border, and contemplating closing it for good. The move severs, at least for now, the last economic link between the rival neighbors as tensions escalate over the North's controversial missile and nuclear programs. Meanwhile, analysts speculate that Pyongyang is getting ready to conduct its second nuclear test explosion of the year. Closing Kaesong will be costly for North Korea — the isolated communist nation struggles to keep its people from starving, and it earned $80 million from the $470 million worth of goods produced at the complex in 2012, according to South Korea's Ministry of Unification. What does Pyongyang hope to gain by closing the factory doors? Here, three theories:

1. North Korea is just trying to put more pressure on its enemies

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.