The prime minister, Shinzo Abe, said his government would take "every possible measure to protect the lives and safety of the Japanese people".
The closure of Kaesong, the last symbol of rapprochement between the two Koreas, marks a serious deterioration in cross-border ties. The move is also a sign of how far the North's leader, Kim Jong-un, may be prepared to go to foment crisis on the peninsula, given that a prolonged closure would deprive his regime of an important source of hard currency.
South Korea's president, Park Geun-hye, described the suspension as "very disappointing" and said investors would now shun the North.
"Investment is all about being able to anticipate results and trust and when you have the North breaking international regulations and promises like this and suspending Kaesong while the world is watching, no country in the world will invest in the North," Park told a cabinet meeting.
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