A South Korean watchmaker will launch construction on a new factory following a groundbreaking ceremony on Tuesday in the North's border city of Gaesong.

The watchmaker, Romanson, said that it received an official invitation from North Korea on Monday and that some 50 people, including its investors and related company officials, would attend the ceremony.

However, North Korean officials reportedly have no plan to attend the event.

A Romanson official said on Monday that the two-story, 9,200 square-meter factory will be completed by the end of May.

The watchmaker, set to invest 15.5 billion won or around 15.4 million dollars in the North by forming a consortium with five other local firms, plans to roll out products from the factory line beginning in June.