The release suggests that the communist state desires to ease cross-border tensions following former U.S. President Bill Clinton's dramatic visit to Pyongyang.

Yu Seong-jun, a 44-year-old employee at Seoul-based Hyundai Asan, which runs a joint industrial park in North Korea, was handed over to South Korean officials at the Kaesong complex.

"I am pleased that I could return safely," Yu told reporters upon crossing the border into the South. "I appreciate the government, Hyundai Asan and all people who have made efforts for me," said Yu, who looked tired but fairly healthy.

Yu was arrested by the North Korean military on March 30 during a business trip to the industrial complex. He was accused of criticizing Pyongyang's political system and trying to lure a North Korean female worker into defecting to the capitalist South.

The North has claimed the South Korean was a spy disguised as a Hyundai employee. It was not immediately known whether he was cleared of the charges or if Yu's company paid compensation for his release.

There was no trial or other legal process for Yu, unlike the two American journalists who had been convicted by the North's highest court and sentenced to 12 years in labor camps, charged with an illegal border crossing and an unidentified "grave crime."

"The North released Yu in the form of expulsion," the Unification Ministry said. It denied that the government had paid any compensation.

Yu's release came during a visit to North Korea by Hyun Jung-eun, the chairwoman of Hyundai Group, who had traveled to Pyongyang for the purpose of gaining his freedom. Hyun was scheduled to return home on Wednesday, but extended her North Korea trip until Friday in a desperate effort to bring the detainee back home.

Hyun's visit came on the heels of Bill Clinton's 20-hour journey to Pyongyang last week to secure the release of the two American journalists. The U.S. citizens were freed on Aug. 5 after spending nearly five months in custody in the North.

North Korean leader Kim Jong Il was considered to have scored major political points by using the detention of the two journalists to bring a former U.S. president to his door. Kim's meeting with Clinton is also expected to provide momentum to ease U.S.-led sanctions imposed on the impoverished nation for its nuclear test in May, analysts here say.

Analysts say the North also wants to use the release of the South Korean national to force the conservative government in Seoul into a more pliable policy, including the resumption of much-needed food and economic aid to the impoverished country.

President Lee Myung-bak has vowed not to offer any economic aid before the North gives up its nuclear ambitions. However, he is expected to resume humanitarian aid through civic groups.

"Mr. Yu's release is expected to improve inter-Korean ties, though not in the foreseeable future," said Ryu Kil-jae, a professor at the University of North Korean Studies in Seoul.

Lee's presidential office ruled out any changes in Seoul's tough policy toward the North. "The government will continue to maintain its policy consistency toward North Korea," the office said in a statement.

The North has yet to set free four South Korean fishermen held captive since July 30. The North said the boat had "illegally intruded" into its territorial waters and the fishermen were "under investigation." It apparently hopes to use this case to win political concessions from the South, which has led sanctions against the North for its nuclear and missile tests.

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