North and South Korea dug in their heels Friday in an escalating row over wages at their Kaesong joint industrial zone. Pyongyang last month announced it would raise the basic salary of some 54,000 North Korean workers employed across 125 South Korean firms in the complex. But the South rejected the idea, citing an existing agreement that any wage rise had to be agreed by a joint committee overseeing the management of the park, which lies just over the border in North Korea.
"The government can never accept any unilateral system change," South Korean Unification Ministry Spokesman Lim Byeong-Cheol told reporters Friday. Voicing "regret" at Pyongyang's refusal to engage with Seoul's offer of a dialogue on the issue, Lim said the ministry would work closely with company managers in Kaesong to resolve the dispute.
The North's proposal would increase the average monthly sum the South pays for each worker - including allowances, welfare and overtime - from $155 to $164. On Thursday, North Korea said it had no need to consult with the South over the wage hike, saying it had a "legitimate and normal" right to amend working conditions in Kaesong.
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