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Seoul's unification ministry says remaining seven workers have returned home from joint industrial zone in North Korea.
S Korea edging towards deal to ensure return of seven workers stuck at Kaesong complex run jointly with North.
South Korean official warns of a "grave measure" if North rejects offer to hold talks on Kaesong industrial zone.
Former diplomats say Pyongyang is using planned nuclear tests to wring concessions and aid from the US.
National memorial service featuring tens of thousands of soldiers and civilians for the "dear leader" begins.
Hundreds of thousands pay their final respects to Kim Jong-il, as his son takes over command of the country.
Weeping crowds line Pyongyang's streets as Kim Jong-il's coffin, escorted by his son, is taken to the national palace.
Hundreds of thousands of mourners expected to be mobilised for Wednesday's event, from which foreign guests are barred.
Former First Lady and head of Hyundai Group meet North's new leader during visit to pay respects to his late father.
Review says 1998 to 2008 "Sunshine policy" to reach out to North failed to curb its nucler drive or improve lives there.
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