December 28, 2017 / 2:17 AM / 23 days ago

No proof Kaesong cash funded N.Korea arms programs -S.Korea expert panel

SEOUL, Dec 28 (Reuters) - There was no evidence that North Korea had diverted wages paid to its workers by South Korean companies operating in a now-closed industrial park on their border to bankroll its weapons programs, an expert panel appointed by Seoul’s Ministry of Unification said on Thursday.

The investigation by the panel reversed the contention by the previous government that most of the cash that flowed into the jointly run Kaesong complex was diverted to North Korea’s military.

South Korea pulled out of the industrial park on the North Korean side of the border, where South Korean factories employed North Korean workers, after the North launched a long-range missile last year. (Reporting by Hyonhee Shin; editing by Richard Pullin)

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