The employees of a South Korean trading firm have been evacuated from their offices in Baghdad to a hotel after one of its employees was taken hostage by armed insurgents on Thursday.

Following reports of the man's captivity, the Korean workers left the office of their trading firm to take refuge at the hotel on Sunday as a precaution against further attacks by Muslim insurgents.

Gana General Trading Company started operations in Iraq shortly after the United States invaded the country last year, providing military supplies to the U.S. military.

Earlier on Saturday, Seoul warned Korean nationals not to travel to Iraq, saying its decision to send some 3,000 additional troops might prompt terror attacks on South Koreans.