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SEOUL, South Korea – North Korea said Friday it will confiscate five South Korean-owned properties at a jointly-operated mountain resort in the isolated communist country, a development likely to worsen already-soured relations.
North Korea has been demanding that the South resume tours to the facility, which had been a key source of foreign currency earnings for the impoverished nation but which were suspended after a North Korean soldier shot a South Korean tourist to death in 2008.
South Korea has refused to restart tours until its demands for a joint investigation into the death are carried out.
Tensions between the two Koreas are already high after a South Korean navy ship sank last month amid suspicion that North Korea may have been responsible. North Korea has denied involvement.