The Gwangju Biennale, one of Asia's largest contemporary art events, is due to open Saturday, with its Pavilion Project bringing together artists from around the world at venues across the southwestern city.

The dispute began after Taiwanese artists said organisers had initially agreed to call their exhibition the "Taiwan Pavilion", but changed the name in June to "NTMoFA", the acronym for Taiwan's National Taiwan Museum of Fine Arts.

The change was made "without the consent of the participating team, and brutally erased Taiwan from the poster," the artists said in a joint statement last month, accusing organisers of "political censorship".

China insists Taiwan is part of its territory and has threatened to use force to annex the self-ruled island of more than 23 million people.

Last week, the Gwangju Biennale foundation reversed course and agreed to restore the name "Taiwan Pavilion".

Chinese artists then halted preparations for their own pavilion, and on Thursday, the Chinese artists announced they would formally withdraw, according to local media footage.

A spokesperson for the foundation told AFP: "We have confirmation the Chinese artists are withdrawing from the biennale."

China's consulate general in Gwangju said Biennale organisers "openly allowed the Taiwan region of China to participate in the exhibition using a name that is completely inconsistent with its status."

"This constitutes a serious violation of the One China principle," it said, adding: "We once again urge the organisers of the Gwangju Biennale to immediately rectify their wrongdoing."

South Korea's foreign ministry spoke up to calm the row, saying that the "government's basic position regarding Taiwan remains unchanged".

The ministry said the decision was made in the cultural and artistic sphere, and "is unrelated to the South Korean government's position regarding Taiwan."

"We hope that this issue will not affect South Korea-China relations or exchanges and cooperation between the two countries," they added.