hankyoreh

the Haekumgang Hotel, a floating hotel in Kosong Port

South Korean government officials were stunned by the news that North Korean leader Kim Jong-un has ordered the removal of South Korean facilities from the Mt. Kumgang resort, a long-standing symbol of inter-Korean cooperation. Officials are groping to understand the intent of North Korea’s belligerent announcement.

“The first order of business is determining exactly what position is held [by North Korea] and what it’s planning for the future. We’ll carry out deliberations where possible [with the North],” a senior official at the Blue House told reporters on Oct. 23.

“We’re prepared to discuss [with North Korea] about protecting South Korean property rights, the spirit of the inter-Korean agreements, and resuming and expanding tourism to Mt. Kumgang whenever the North makes the request,” Unification Ministry Spokesperson Lee Sang-min said during the regular briefing on Wednesday.

“Since the opinions in question were reported by the North Korean media, the government is currently working to figure out the North’s intentions and the precise facts of the situation,” the spokesperson added.

The news has clearly flustered the leaders of Hyundai Asan, but they haven’t given up hope yet. “Considering that we’ve been preparing to resume tourism there, we were taken aback by this unexpected report, but we will remain clear-headed in our response,” the company that developed the Mt. Kumgang resort said in an official position statement.

“This project has survived various ordeals for some 30 years now, since the time of Chairman Chung Ju-yung, and we can’t let it end so abruptly. We have some degree of trust in North Korea. Perhaps this could even be an opportunity to return to the negotiating table,” a source at the Hyundai Group said hopefully.

Since 1998, Hyundai Asan has invested a total of 786.5 billion won (US$671.22 million) in the Mt. Kumgang resort. That figure is the sum of the 226.8 billion won (US$193.56 million) spent on building tangible assets including the Haekumgang Hotel (a floating hotel in Kosong Port) and restaurant Okryugwan and the US$490 million the company paid over 10 years in fees for the right to operate the resort. The company estimates that it has lost 1.6 trillion won (US$1.37 billion) in sales during the 11 years that the resort has been closed.

By Shin Min-jung, staff reporter, and Lee Je-hun, senior staff writer

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