North Korea has declared void all inter-Korean contracts on the joint industrial venture at Gaeseong in the North.

The North’s state-run Korean Central News Agency (KCNA) reported that the North’s agency in charge of the Gaeseong Industrial Complex will nullify all contracts and regulations regarding the business park, including agreements on rent, land use, wages and taxes.

The Central Guidance Bureau for Special Zone Development said the previous contracts gave preferential treatment to South Korean companies. The Cabinet agency said it will draw up and implement a new set of regulations and standards reflecting changes in the status of inter-Korean relations.

The agency warned that the South Korean companies operating in the complex must either accept the updated terms unconditionally or leave the industrial complex.

Pyongyang blamed Seoul’s alleged insincerity at working-level meetings for deteriorating the situation, adding that future developments will be dependent on Seoul’s attitude.