The government is asserting that inter-Korean economic projects will remain unaffected by North Korea's declaration of its possession of nuclear arms.

A government official said it's true that corporate investors in the Gaesong industrial complex are feeling jittery over the ongoing nuclear dispute. However, he expressed confidence that business cooperation between the two Koreas would not be disrupted by the atomic standoff with Pyongyang.

His comments came in a luncheon meeting for executives of fifteen South Korean firms that recently opened factories in Gaesong.

The official said that ongoing inter-Korean projects would not likely be affected in the short term, citing broad international support for the lingering standoff to be resolved diplomatically through the six-way talks.

He also said that talks on providing electricity and communications facilities for the Gaesong complex are proceeding on schedule between South and North Korea and that North Korean employees working at South Korean factories in the Gaesong park are conducting business as usual.