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Kim Jong Un

Burden of Kaesong closure to mostly fall on S. Korean firms

South Korea's sudden withdrawal from a factory park in North Korea is a severe blow for the South Korean businesses that populated it, but is unlikely to make much difference to the North's decrepit economy despite being a stern diplomatic measure.

Aiming to punish North Korea for a rocket launch on Sunday, South Korea's government said earlier this week it will shut down the Kaesong industrial complex. It accused North Korea of using the cash it earns from South Korean involvement in the rare venture between the two Koreas to finance its weapons programs.

Pyongyang responded Thursday by announcing a military takeover of the complex near the border of the two countries,...