A North Korean organization created to engender cooperation with South Korean companies will close its office in Beijing.

Sources in Beijing said on Tuesday that the Korean National Economic Cooperation Federation is making preparations to close its Beijing office under orders from Pyongyang. The federation currently operates with three North Korean officials led by Ho Su-rim, who holds a vice-minister-level post.

Pyongyang reportedly plans to close the Dandong office as well within six months.

The federation has cooperated with the South's Korea Trade-Investment Promotion Agency to promote inter-Korean economic projects. As examples, it has hosted consultative meetings for South Korean companies that want to invest in the North, and authenticated North Korean products being sold in South Korea.

The closure of the Beijing office raises speculation that North Korea might soon be changing its system of inter-Korean economic cooperation.