Starting Monday, overland passage between the two Koreas will be restricted and over half of South Korean workers residing in the North will return home.
The changes are in line with Pyongyang's unilateral measures announced last week for, what it said, was Seoul's unwillingness to uphold previous inter-Korean agreements.
More than half of the four-thousand South Koreans staying at the Gaeseong Industrial Complex are expected to leave the country, and the inter-Korean economic cooperation office will also be shut down.
All South Korean visits to the North for economic cooperation or exchanges will also be blocked in principle.
A government source says North Korea notified the South in a telephone message Sunday that it will block any South Korean publications from entering the Gaeseong complex or the Mount Geumgang resort. If any such attempts to bring in the materials are made, both the personnel and the vehicle will be denied entry and the materials will be sent back.
An inter-Korean cargo train, in service since May of last year, made its final fun on Friday. All tours to Gaeseong and Mount Geumgang have been halted as well.