South and North Korea resumed talks Wednesday aimed at restarting operation of the Kaesong joint industrial park that has been shut down for more than 4 months. Observers said a breakthrough in negotiations could lay the foundation for the "progressive development" of the joint factory park while further failure could lead to the closure of the complex.

Kaesong joint industrial park has turned empty since its shutdown in April. (Photo: Reuters)

A military drill between South Korea and the US set for later this month is likely to interrupt the inter-Korean negotiations. Since the shutdown of Kaesong, the two Koreas have conducted 6 rounds of talks but have remained their disagreements over Kaesong’s reopening. Its shutdown has caused losses for South Korean firms operating there, and they have received 250 million USD in compensation from the Seoul government.