Seoul’s unification ministry announced that it will dissolve the foundation in charge of operations at a defunct inter-Korean industrial park, in a move reflecting strained relations with North Korea.

Citing the “prolonged suspension” of the Kaesong industrial complex, the ministry said in a policy brief Thursday that the foundation’s functions had effectively become “inactive,” rendering it unable to fulfill its primary role of supporting the development and operations of the complex. 

The brief cited longstanding “operational inefficiencies” as a reason for the foundation’s dissolution, revealing annual government spending of some $5.4 million (7 billion won) and almost $45 million (58.4