South Korea reaffirms allegation Pyongyang took majority of Kaesong cash, defends THAAD

SEOUL, South Korea (Reuters) — South Korean Unification Minister Hong Yong-pyo on Thursday (February 18) reaffirmed the allegation that 70 percent of U.S. dollars paid as wages and fees for the suspended Kaesong industrial project, run jointly with the North, had been diverted for use in Pyongyang’s weapons program.

Last week, South Korea suspended the project as punishment for the North’s rocket launch on February 7 saying it would no longer allow the funds paid to Kaesong to be used in the North’s missile and nuclear programs.

“According to various channels, about 70 percent of the money paid to workers at the Kaesong Industrial Complex has been funneled into the ruling Workers’ Party (of North Korea). The money has been spent to develop a nuclear bomb and a missile as well as to flaunt achievements (of the regime),” said Hong at an interpellation session at the National Assembly.

South Korean ministers also defended their country’s plan to deploy a U.S. missile defense system on the Korean peninsula to counter what they see as a growing threat from North Korea’s weapon capabilities.

“If THAAD (Terminal High Altitude Area Defense) is deployed in a U.S. military base in South Korea, multiple layers of defense will be available against the North’s nuclear missile threat and the combined defense system of South Korea and the United States will strengthen,” said South Korean Defence Minister Han Min-koo.

“The official announcement of the possibility of THAAD deployment is a defensive measure to counter increasing nuclear and missile threats by North Korea . It’s not against any country in particular. We have been discussing these concerns on a number of occasions at various levels,” said South Korean Foreign Minister Yun Byun-se.

Wang Yi, the Foreign Minister of China, North Korea’s neighbour and main ally, expressed concern on Friday (February 12) over a possible U.S. deployment of THAAD missile defence system to South Korea, saying it could also be used to target China.