North Korean tax authorities have demanded South Korean companies doing business at the Gaesong Industrial Complex pay part of this year's taxes.
 
Seoul's Unification Ministry said Tuesday the North sent notices to the companies on outstanding tax payments for the period from January 1st to April 8th this year before operations at the complex came to a halt.
 
The latest demand, however, is in breach of the tax exemption agreement signed between both Koreas when they made the deal to restart the joint factory park. Seoul and Pyongyang had agreed to exempt the taxes considering financial hardships the companies incurred when the complex shut down.
 
A government source says the agreement must be upheld and it is a matter of trust between the two sides. The source said it seems there was some misunderstanding within the North's authorities.
 
Pyongyang’s request is seen as an attempt to levy taxes for the period when the complex was not in operation.