None of the 53,000 North Koreans employed at the Kaesong factory complex, the only remaining North-South joint venture, showed up for work Tuesday. This comes a day after a high-level North Korean official announced the project was being suspended, blaming the South for turning the complex into a "theater of confrontation." Meanwhile, North Korea has urged foreigners to consider leaving the South in case a war breaks out.
South Korean President Park Geun-hye used a Tuesday cabinet meeting to warn Pyongyang that "no country or company in the world" will invest in North Korea if it suspends operations at the Kaesong joint industrial zone.
The president says North Korea's decision is "very disappointing." She asked how long does her country have to face a vicious cycle of North Korea asking for compromise and support and then creating crises.
Park spoke as the 400 remaining South Korea factory managers still inside the Kaesong facility, just north of the border, were forced to suspend production because none of their North Korean employees reported for work.
The head of the factory owners' association, Han Jae-kwon, said if the situation continues the small and medium enterprises will face bankruptcy.
Han said the group wants to send a delegation to North Korea to discuss the fate of the Kaesong complex. He also is calling on both Seoul and Pyongyang to hold talks to find a way to immediately normalize the facility's operations.
After a tour of the complex on Monday, the secretary of the central committee of North Korea's Workers' Party, Kim Yang Gon, announced Pyongyang will reevaluate whether the project, which began production in 2004, will continue. Kim says that will depend on Seoul's attitude in the next few days.
North Korean children hold up red scarves to be tied around their necks during an induction ceremony into the Korean Children's Union held at a stadium in Pyongyang, April 12, 2013.
Two military officers admire displays at a flower show featuring thousands of Kimilsungia flowers, named after the late North Korean leader Kim Il Sung, Pyongyang, April 12, 2013.
South Korean soldiers stand guard at an observation post near the demilitarized zone (DMZ) which separates the two Koreas in Paju, north of Seoul April 11, 2013.
Female North Korean soldiers patrol along the banks of Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, April 11, 2013.
A North Korean man blocks his face with his hand from being photographed as he and other residents take a ferry in Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, April 11, 2013.
People take part in an oath-taking before the statues of late North Korean leaders Kim Il-sung and Kim Jong-il on Mansudae Hill in Pyongyang, April 10, 2013. (KCNA)
Anti-North Korean protesters release balloons with peace messages on the Grand Unification Bridge leading to the North near the demilitarized zone separating the two Koreas, in Paju, north of Seoul, April 10, 2013.
South Koreans arrive with their belongings from North Korea's Kaesong at the customs, immigration and quarantine office near the border village of Panmunjom, in Paju, north of Seoul, South Korea, April 9, 2013.
Visitors look at the industrial complex in Kaesong, North Korea, through binoculars at Dora Observation Post in the demilitarized zone (DMZ) near the border village of Panmunjom, in Paju, South Korea, April 9, 2013.
A South Korean military vehicle passes by gates leading to the North Korean city of Kaesong at the customs, immigration and quarantine office near the border village of Panmunjom, April 8, 2013.
An elementary school teacher orders her students to leave as they watch South Korean housewives denounce annual South Korean-U.S. military exercises, near the U.S. Embassy in Seoul, April 8, 2013.
South Korean army soldiers patrol along a barbed-wire fence near the border village of the Panmunjom, in Paju, South Korea, April 8, 2013.
North Korean military dogs run to a target with a portrait of South Korean Defence Minister Kim Kwan-jin during a military drill, April 6, 2013. (KCNA)
The two Koreas, which have no diplomatic relations, find themselves in an increasingly tense standoff.
On Tuesday, a state-run group in Pyongyang, the Korea Asia Pacific Peace Committee, urged foreigners living in South Korea that they should consider evacuating the country, saying the North "does not wish harm on foreigners in South Korea should there be a war."
A television announcer, during a special broadcast of the statement, says “once a war is ignited on the peninsula, it will be an all-out war, that is a merciless sacred retaliatory war to be waged” by North Korea which “does not want to see foreigners in South Korea fall victim to the war.”
This comes after a similar previous advisory to diplomats in the North Korean capital stating the safety of foreigners there could not be guaranteed from April 10th. None of the 24 diplomatic missions in Pyongyang has closed nor sent its nationals out of the country.
North Korea has renounced the 1953 ceasefire agreement it made with the U.S.-led United Nations forces and China. It then threatened a preemptive nuclear strike on the U.S. mainland and America's military bases in the Pacific region. Pyongyang also declared that a state of war again exists between the North and South.
Fears of new missile launch
There is also growing speculation that, within days, North Korea could fire medium or long range missiles.
South Korean domestic media, including YTN and the semi-official Yonhap news agency, on Tuesday afternoon quoted government sources in Seoul saying there are indications a North Korea missile launch along the Sea of Japan (East Sea) coast could occur Wednesday.
A spokesman at South Korea's Ministry of National Defense told VOA News that it "cannot confirm" the reports.
South Korean officials say they are also monitoring the North's nuclear test site at Punggye-ri where activity of personnel and vehicles has been spotted.
North Korean missile launches and nuclear tests are in violation of U.N. resolutions.