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North Korea has pulled out of a liaison office with South Korea in a major setback for soul the news came just hours after United States imposed its first new sanctions on the north and that after the second U. S. North Korea summit broke down last month in the north the joint liaison office was set up in September in the border city of case song following last year's historic summit between north Korean leader Kim Jong moon and south Korea's president Jay in the office set up a regular communications channel between the two rivals which technically are still at war and as the north's decision to quit came after the U. S. blacklisted to Chinese shipping companies it says helped North Korea evade sanctions over its nuclear program it was the first such step since last month's meeting between Kim Jong hoon and US president Donald Trump that broke down over conflicting demands by the north for relief from sanctions and from the United States for Pyongyang to give up its nuclear weapons it would north's withdrawal from the office was also another blow to moon who was seen his standing as a mediator between Pyongyang and Washington , and divisions grow within his own government over how to break that impasse Bucks South Korea says it would not directly link the north's move to the failed annoys some adult