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South Korea President Park Geun-hye has said that no company will invest in North Korea if Pyongyang shuts down the Kaesong factory complex, the Associated Press reports.
It comes after Pyongyang suspended its operations and recalled all 53,000 of its workers.
South Korean factory managers have said North Koreans are not showing up for work at joint complex, the Associated Press reports.
Russian President Vladimir Putin said he was very worried about the escalating tensions on the Korean peninsula and said any conflict there could cause greater devastation than the 1986 Chernobyl disaster.
Speaking in a joint news conference with German Chancellor Angela Merkel during a visit to Germany he urged "everyone to calm down" and praised the US for postponing a planned missile strike over the weekend.
UN Secretary General Ban Ki-Moon warned North Korea that a further nuclear test would be a "provocative measure." In a news conference in the Hague, he said:
He also said he was aware of possible preparations for a nuclear test, but had no specific information.
Japan has ordered its armed forces to shoot down any North Korean missile headed towards its territory, a military source told the AFP.
Japan's defence minister Itsunori Onodera issued the order, which will see Aegis destroyers equipped with sea-based interceptors missiles deployed in the Sea of Japan, the official said.
North Korea does not appear to be preparing for a fourth nuclear test in the near future, South Korea's defence minister said. A spokesman for the ministry said:
Earlier another South Korean minister said there was an indication that North Korea was preparing for a fourth test, but the minister then said he "misspoke."
A South Korean minister says he misspoke when he said there is an "indication" that North Korea is preparing for a nuclear test.
When asked about the increased personnel and vehicles at the North's nuclear test site, South Korea's unification minister Ryoo Kihl-jae, said "there is such an indication."
The comments were recorded on video, according to the Associated Press but Ryoo later said he could not remember making the comments, and didn't mean to say them.
South Korea's defence ministry says new nuclear test by North Korea is "not imminent", a spokesperson told Reuters.
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Through her tears, a North Korean woman told me how she had to escape: risk death while running across the border or die of starvation.
Memories of the Korean war are never far away in South Korea, where residents have grown used to living with the constant threat of war.