The Kaesong industrial complex in North Korea is reopening, five months after it was closed due to political tensions with the South.
More than 800 South Koreans are due to cross to the jointly-run centre.
Seoul has also sent negotiators who will discuss ways to attract foreign investment and ensure future stability.
The zone, just inside North Korea, is home to 123 South Korean factories that employ more than 50,000 North Koreans.
It is the last functioning inter-Korean joint project and a key source of revenue for Pyongyang.
The North removed all of its workers in April after its third nuclear test on 12 February sparked tensions on the Peninsula and led to expanded UN sanctions.
Shortly afterwards, South Korea and the US launched annual military drills, further angering Pyongyang.
The two Koreas have held multiple talks over reopening the Kaesong complex and finally reached a deal last month.
Under a five-point accord, the site will become open to foreign investors, making it harder for North Korea to unilaterally close it again.
South Korean firms will also be exempt from taxes for the rest of the year, to offset losses incurred while the complex was closed.
But some local businessmen remain worried about the risks of doing business with Pyongyang.
“Honestly, I still feel a bit nervous, because you never know whether the North will change its mind in the future,” a textile company manager told the French news agency AFP.
“Who knows if a crisis like this won’t happen again?” he said.
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