North Korea set the cap Monday on how many South Koreans are allowed to remain at the Gaeseong Industrial Complex.

The number falls just short of one-thousand, and is significantly less than what the South had expected.

A Seoul official says Pyongyang notified the Gaeseong complex management committee Sunday night of its decision to reduce the number.

The North had earlier said 37 of 53 management committee employees could stay, but has demanded an additional reduction in that number as well.

North Korea previously said that 16- to 17-hundred of about 41-hundred South Korean workers would be allowed to remain at the complex.