South Korea claims that 70 percent of the fees paid for a joint program with its northern neighbor were taken for weapons programs and Kim Jong Un's personal use, Reuters reports.
Seoul suspended its participation in the Kaesong program last week response to North Korea's long-range rocket test. Today's (Sunday) announcement is the first time South Korea has officially acknowledged that the North Korean workers did not receive the pay they were due.
Pyongyang says that the latest move is "a declaration of war." It has since deported all South Korean workers and froze assets belonging to South Korean companies.