South Korea decides to stop the operation of the Kaesong joint industrial complex with North Korea in response to the launch of Kwangmyŏngsŏng-4.

The Kaesng Industrial Region (KIR) or Kaesng Industrial Zone (KIZ) is a special administrative industrial region of North Korea (DPRK). It was formed in 2002 from part of the Kaesng Directly-Governed City. On 10 February 2016, it was temporarily closed by the South Korean government and all staff recalled by the Park Geun-hye administration, although the President of South Korea, Moon Jae-in, has signalled his desire to "reopen and expand" the region.Its most notable feature is the Kaesng industrial park, which operated from 2004 to 2016 as a collaborative economic development with South Korea (ROK). The park is located ten kilometres (six miles) north of the Korean Demilitarized Zone, an hour's drive from Seoul, with direct road and rail access to South Korea. The park allows South Korean companies to employ cheap labour that is educated, skilled, and fluent in Korean, whilst providing North Korea with an important source of foreign currency.As of April 2013, 123 South Korean companies were employing approximately 53,000 DPRK workers and 800 ROK staff. Their wages, totalling $90 million each year, had been paid directly to the North Korean government.At times of tension between North and South Korea, southern access to the Industrial Park has been restricted. On 3 April 2013, during the 2013 Korean crisis, North Korea blocked access to the region to all South Korean citizens. On 8 April 2013, the North Korean government removed all 53,000 North Korean workers from the Kaesng industrial park, which effectively shut down all activities. On 15 August 2013, both countries agreed that the industrial park should be reopened.On 10 February 2016, the South Korean Ministry of Unification announced that the industrial park would be "temporarily" closed down and all staff recalled, partly in protest over continued North Korean provocations, including a satellite launch and a claimed hydrogen bomb test in January 2016. The next day, the North announced it was expelling all South Korean workers and said it will freeze all South Korean assets and equipment at the jointly run factory park. All 280 South Korean workers present at Kaesng left hours after the announcement by the North.

South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. Its western border is formed by the Yellow Sea, while its eastern border is defined by the Sea of Japan. South Korea has a population of 51 million, of which roughly half live in the Seoul Capital Area, the fifth largest metropolis in the world. Other major cities include Incheon, Busan, and Daegu.

The Korean Peninsula was inhabited as early as the Lower Paleolithic period. Its first kingdom was noted in Chinese records in the early 7th century BCE. Following the unification of the Three Kingdoms of Korea into Silla and Balhae in the late 7th century, Korea was ruled by the Goryeo dynasty (918–1392) and the Joseon dynasty (1392–1897). The succeeding Korean Empire was annexed in 1910 into the Empire of Japan. Japanese rule ended following the former's surrender in World War II, after which Korea was divided into two zones; a northern zone occupied by the Soviet Union and a southern zone occupied by the United States. After negotiations on reunification failed, the latter became the Republic of Korea in August 1948 while the former became the socialist Democratic People's Republic of Korea the following month.

In 1950, a North Korean invasion began the Korean War, which saw extensive American-led United Nations intervention in support of the South, while China intervened to support the North, with Soviet assistance. After the war's end in 1953, the country's devastated economy began to soar, recording the fastest rise in average GDP per capita in the world between 1980 and 1990. The June Struggle led to the end of authoritarian rule in 1987 and the country is now considered among the most advanced democracies in Asia, with the highest level of press freedom on the continent.South Korea is a developed country and is ranked as the seventh-highest country on the Human Development Index (HDI) in the Asia and Oceania region. South Korea has one of the highest life expectancies in the world, although it is facing an aging population and a declining fertility rate. Its economy ranks as the world's tenth-largest by nominal GDP. Its citizens enjoy one of the world's fastest Internet connection speeds and the densest high-speed railway network. The country is the world's fifth-largest exporter and eighth-largest importer. Its armed forces is ranked as one of the world's strongest militaries and is the world's third-largest standing army by military and paramilitary personnel. Since the 21st century, South Korea has been renowned for its globally influential pop culture, particularly in music (K-pop), TV dramas and cinema, a phenomenon referred to as the Korean Wave. It is a member of the OECD's Development Assistance Committee, the G20, and the Paris Club.