South Korea said Tuesday that North Korea’s military demolished an inter-Korean liaison office building just north of the tense Korean border, the Associated Press reported, citing Seoul’s Unification Ministry.

The building, located in the North Korean border town of Kaesong, was destroyed at 2:49 p.m. local time.

North Korea had earlier threatened to demolish the building, blaming the South’s failure to stop activists from flying propaganda leaflets across the heavily militarized border, the AP reported.

Some experts believe North Korea is frustrated because Seoul is unable to resume joint economic projects due to U.S.-led sanctions.

On Saturday night, Kim Yo Jong, the influential sister of North Korea’s leader, warned that Seoul will soon witness “a tragic scene of the useless North-South liaison office (in North Korea) being completely collapsed.” She also said she would leave to North Korea’s military the right to take the next step of retaliation against South Korea.

“We’re taking the situation seriously,” ministry spokeswoman Choi Hyun-soo told a briefing, according to Reuters. “Our military is maintaining readiness posture to be able to respond to any situation.”

The Associated Press contributed to this report

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