South Korea on Friday said it will withdraw rest of its workers from a jointly-run industrial complex in North Korea.
South Korea took the decision after North Korea rejected its offer for a talk to restart operations at the Kaesong Industrial Complex.
Announcing the decision, South Korean Unification Minister Ryoo Kihl-jae said: "We made the decision to withdraw all workers in light of mounting difficulties they face at the complex."
As many as 175 South Korean workers are present at the factory zone.
"On April 9, North Korea had pulled out all of its 53,000 workers from the zone, virtually shutting it down," South Korea´s Yonhap news agency reported.
"The South Korean decision came hours after North Korea turned down Seoul´s proposal for dialogue, warning that it could take ´grave action´ of its own in regards to the industrial zone," it said.
Rising tensions on the Korean peninsula, North Korea on Apr 11 warned the US and South Korea that war can break out any moment.
Reacting to Americas use of nuclear-capable B-2 bombers in joint South Korean military drills, North Korea last month threatened to attack the United States military bases in South Korea and Pacific and put its rocket units on standby.