Seoul's unification ministry on Thursday dismissed allegations that President Park Geun-hye's long-time confidante influenced Seoul's decision to shut down an inter-Korean industrial complex in February.
The decision was made out of security concerns in response to North Korea's nuclear and missile provocations early this year, Seoul's unification ministry said.
A group of local companies on Thursday asked the independent counsel looking into the corruption scandal to investigate the alleged interference by Choi Soon-sil.
"We've made a political decision to completely stop the operation of the complex in a bid to apply pressure on North Korea and make it choose the path toward denuclearization," Jeong Joon-hee, ministry spokesman, said at a regular press briefing.
On Feb. 10, South Korea shut down the Kaesong Industrial Complex following North Korea's fourth nuclear test and long-range rocket launch early this year.
The complex, once a symbol of inter-Korean reconciliation, housed 124 South Korean companies. The park, which opened in 2004, had served as a major revenue source for the cash-strapped North.
The shutdown is believed to have caused 1.5 trillion won ($1.27 billion) in losses, according to the group of the local firms, adding that the government's financial support measures are not sufficient.
Park's close friend Choi is accused of meddling in state affairs and using her ties to Park to pressure local conglomerates into making donations into two foundations controlled by her. (Yonhap)
