North Korea will consolidate its overseas inter-Korean economic cooperation offices next year, moving them all to the National Economic Cooperation Federation in Gaesong.

Seoul-based Yonhap News Agency cited a South Korean official well versed in North Korean affairs as saying that Pyongyang would close down its offices in China by year’s end.

The source said the North took the measures after recalling several officials appointed overseas on allegations of misconduct.

The Gaesong-based federation, which is currently under the Financial Planning Department of the ruling Workers' Party, will be controlled by the North's Asia-Pacific Peace Committee.

The committee will therefore be in charge of economic cooperation as well as other exchanges.