TOKYO (Sputnik) — In February, North Korea unilaterally decided to increase employee salaries by some 5 percent. This decision was criticized by Seoul, because of the violation of an agreement between the two nations stipulating that Kaesong wage changes must be approved by both parties.
“The quasi-state committees from the two Koreas reached an agreement on Monday to hike the wage to $73.87… A 5 percent hike is the same level at which the wage has been increased every year so far,” Yonhap news agency said.
Kaesong is a special economic zone established in 2004 on the North Korean territory, to the north of the demilitarized zone separating the two Koreas. It is jointly run by Seoul and Pyongyang and produces clothes, shoes, watches, and other goods.
The two countries have been in a state of war since 1953, as Korean War hostilities were called off with a ceasefire, and no peace treaty has been signed.
