That could allow film from Korean or Mexican factories to undersell the American product.

Apparently there was a problem with the inserts at the Korean factory and it was decided not to use them.

Seoul also wants goods produced by South Korean factories in North Korea included in the agreement.

The park, which might open in 2005, is to hold about 700 South Korean factories.

Some weeks ago, a contingent of Japanese cleaners visited the Korean factory, and they may eventually buy a lot more than the 80 machines they have on order.

Ninety three North Korean factories were built with Russian technical assistance, forging the country's heavy-industrial backbone.

"Last year, I visited South Korean factories in Vietnam," he said.

But those South Korean factories are expected to employ 700,000 workers by 2012.

By 2007, 300 South Korean factories employing about 500 North Koreans each are expected to be operating there.

Construction of the Korean factory began in August 2003 and it came on line in April 2004.