South Korea has declared a full halt to inter-Korean trade.

Starting Tuesday, South Korea will ban the entry of all North

Korean products including those entering the nation via a

third country, such as China.

Any visits to North Korea, except for those to Mount Geumgang

and the Gaeseong Industrial Complex, will also be banned.
Manufacturing at the complex in Gaeseong will continue but

new investments will be prohibited. In addition, half of the

900 to one-thousand South Koreans at the complex will return

to the South.

The government believes the set of measures could inflict up

to 300 million dollars worth of losses on the North, making

it harder for Pyongyang to import food and supplies from

China.

South Korea is also expected to incur up to three trillion

won in sales losses. The ban on cheap North Korean seafood

and other products could also end up weighing on inflation.