South Korea is expected to penalize its companies operating in the Gaeseong industrial Complex should they comply with North Korea's decision to raise wages for its workers there.

A Unification Ministry official in Seoul revealed the plan on Tuesday, saying that South Korean firms asked the government to actively control its companies and ensure that the North’s unilateral wage increase will not be implemented.

The official said that the government plans to send a formal notice to the firms of their duties as well as the legal and administrative consequences they would face should they fail to comply.

The official added that the government has yet to decide on the details of the penalties, which are aimed at preventing South Korean firms from yielding to pressure from the North.