Pyongang vowed to immediately deport hundreds of South Korean workers from the city of Kaesong, which lies in its territory across the heavily militarised border.
State media reported that tens of thousands of North Korean employees would also be pulled out, with South Korean assets frozen and cross-border communications shut down.
Operations at Kaesong were suspended on Wednesday in response to the North’s recent rocket launch, with officials in Seoul saying they wanted to cut profits used for nuclear and missile development.
“The recent provocative measure is a declaration of an end to the last lifeline of the north-south relations, total denial of the June 15 North-South Joint Declaration and a dangerous declaration of a war driving the situation in the Korean Peninsula to the brink of a war,” the CPRK said. MORE