President Lee Myung-bak reportedly has expressed a cautious stance on an inter-Korean agreement to build living quarters for Gaeseong industrial complex workers.

Lee announced his position during a meeting of small and medium-sized firms held in South Chungcheong Province last week.

A participant from the meeting quoted Lee as stressing the need to consider various factors when constructing a facility where tens of thousands of Gaeseong workers would be living together. Lee reportedly cited the possibility of conflicts arising between labor and management as well as between the workers of the two Koreas.

Another participant of the meeting added that Lee didn't express a negative view on the accommodation plan but had underlined that a wide range of factors need to be reviewed.

During the previous government of Roh Moo-hyun, the two Koreas agreed to build living quarters for some 15-thousand workers at the industrial park. However, discussions on the issue have entered into a deadlock since the two Koreas suspended bilateral dialogue.