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South Korea on Thursday pledged about $270 million in financial aid for firms hit by the withdrawal from a joint industrial zone in North Korea that has fallen victim to military tensions.
North Korea has ignored a plea by South Korean businessmen to visit a joint industrial zone on Tuesday for talks on its future, amid fears of a permanent closure.
The United States and South Korea on Tuesday wrapped up joint military drills that infuriated North Korea, raising hopes for an easing of cross-border military tensions.
South Korean workers were due to start returning Saturday from a jointly run industrial park in North Korea after Seoul announced a complete withdrawal following months of military tensions.
South Korea on Thursday formally offered North Korea talks on suspended operations at their joint Kaesong industrial zone, and hinted it might pull out entirely if Pyongyang declines.
The United States would consider any new request from North Korea to resume food aid stalled since 2009, provided Pyongyang allowed US staff inside the isolated country to monitor distribution.
The wait for North Korea's expected missile test, which has kept South Korean and US forces on heightened alert for the past two weeks, may stretch to July.
The closure of the Kaesong joint-industrial zone has begun to hit deals between South Korean manufacturers and foreign buyers.
North Korea laid down rigid pre-conditions Thursday for any talks with Seoul or Washington, including the withdrawal of UN sanctions and a guaranteed end to South Korea-US joint military drills.
North Korea's military on Tuesday threatened the South with imminent "sledge-hammer" retaliation unless Seoul apologised for anti-Pyongyang protestors burning effigies of its revered leaders.
South Korea voiced regret Monday at North Korea's dismissal of its offer for dialogue, as the South's armed forces remained on heightened alert for an expected missile test by Pyongyang.
The US would be allowed to station forces at military bases in the Philippines if it went to war with North Korea, Foreign Secretary Albert del Rosario said Saturday citing a treaty between the allies.
A Japanese official mistakenly announced the launch of a North Korean missile instead of sending an alert about a strong earthquake that hit western Japan on Saturday morning.
US Secretary of State John Kerry arrived in Beijing on Saturday to seek China's help to rein in a belligerent North Korea and provide a foundation for Seoul to lower soaring tensions with Pyongyang.
The United States slammed North Korea's belligerence Thursday and pressed China to rein in its ally.
Top US officials urged China Friday to use all its leverage to stop North Korea's "destabilising" actions on the Korean peninsula.
N. Korea on Thursday renewed a threat to permanently close its Kaesong joint industrial zone with S. Korea, blaming the "confrontation" policies of the South's new president.
The biggest border crossing between North Korea and China has been closed to tourist groups, a Chinese official said Wednesday as nuclear tensions mounted.
South Korea and the United States upgraded their coordinated military surveillance status on Wednesday, a report said, ahead of an expected mid-range missile launch by North Korea.
Japan has deployed Patriot missiles in its capital as it readies to defend the 30 million people who live in greater Tokyo from any North Korean attack.
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