The two Koreas waged a war of nerves over the weekend ahead of a third round of negotiations on Monday over the idle Gaeseong industrial park and future cross-border ties.

North Korea on Saturday belatedly disclosed its telephone notice to the South three days ago in which it criticized the Seoul government’s refusal to hold separate talks over a joint tour program at Mount Geumgangsan.

South Korea accepted Wednesday its reclusive neighbor’s dialogue offer on restarting reunions of separated families given the urgency of the matter. But it rejected the proposal for the tourism project, saying the two sides should focus on the ongoing negotiations on the Gaeseong complex for now. 

Then Pyongyang responded shortly with its decision to shelve it all in an apparent display of discontent.

Delivering the news, the Unification Ministry had said the North’s reason for delay was also to “focus on resolving the Gaeseong issue.”

But the telephone notice blasted Seoul’s decision as “unconvincing,” warning that future talks over the Geumgang tour and family meetings “hinged on” the upcoming meeting in Gaeseong.

“There cannot be any progress on North-South relations in the future unless the Gaeseong district problem is solved. The issue will affect their overall relations,” it said in the name of the Committee for the Peaceful Reunification of Korea.

The agency in charge of cross-border affairs also took a swipe at President Park Geun-hye’s signature “peninsula trust-building process.

“Trust cannot be realized by keeping one side’s standard. It is hypocritical to speak of trust while selectively dealing with inter-Korean dialogue according to your own political purposes,” the notice added.

“We know well about the South’s real intention but are restraining ourselves with high patience. The South had better not miscalculate our generosity and efforts.”

Yet the two Koreas appear far apart on who is to blame for the factory zone’s unprecedented all-stop and how to prevent a relapse.

During their second meeting last Wednesday, Seoul demanded Pyongyang accept responsibility for its unilateral entry ban to the border city and consequent losses for the businesspeople.

It also called for measures to forestall another suspension and ensure easy passage, communications and customs as essential to “future-oriented normalization” of the district.

In contrast, the North called for the complex to be reopened as quickly as possible, accusing the South of passing the buck for its three-month suspension.

“The South side turned up at the meeting with no realistic suggestions for resuming the industrial district project and intentionally put up obstacles to the talks’ progress with insisting inappropriate arguments to shift responsibility for its suspension on the North,” Pyongyang’s official Korean Central News Agency said after the talks ended with no results.

The stakes are high as the two sides face a political and public backlash if they blow another rare chance for cross-border rapprochement.

Last month, what would have been the first high-level governmental dialogue since 2007 broke down over protocol.

But the two Koreas have managed to revive the momentum ― under the swelling pressure of cash crunches on one side and on the other from the 123 firms stuck with growing debts and rusting machinery.

With both sides calling the Gaeseong talks a “touchstone” for future ties, they may reach a compromise once again or extend the negotiations to close the differences over a longer term, observers say.

“Given the plant managers’ ongoing facility checkup and goods retrieval, in an optimistic scenario they could agree to reactivate the park first and formulate anti-suspension measures step-by-step,” a government official told The Korea Herald on condition of anonymity due to the sensitivity of the matter.

Ahead of the third meeting, the Unification Ministry on Saturday named Kim Ki-woong as new chief delegate and head of its inter-Korean cooperation district support directorate, replacing Suh Ho in what it called a regular reshuffle.

Kim will be accompanied by the same two director-level officials. His North Korean counterpart, Park Chol-su, vice director of the General Bureau of the Special Zone Development Guidance, also remains unchanged.

Meanwhile, nearly 100 companies shipped out more than 500 tons of goods, raw and subsidiary materials and equipment between Friday and Saturday, the ministry said.

Another some 210 officials from businesses and related agencies are scheduled to cross the border Monday, it added.

By Shin Hyon-hee (heeshin@heraldcorp.com)