PAJU, South Korea (Reuters) - North Korea closed access to a joint factory zone with South Korea on Wednesday, officials said, putting at risk $2 billion (1.3 billion pounds) a year in trade that is vital for an impoverished state with a huge army, nuclear ambitions and a hungry population.
The move marked an escalation in North Korea's months-long standoff with South Korea and its ally Washington. On Tuesday, Pyongyang said it would restart a mothballed nuclear reactor, drawing criticism from the international community, including China, its major benefactor and diplomatic friend.