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South Korean Unification Minister Kim Yeon-chul (second from left) discusses tourism at Mt. Kumgang during a Kwanhun Club invitational discussion at the Seoul Press Center on Dec. 2. (Lee Je-hun, senior staff writer)

Minister of Unification Kim Yeon-chul acknowledged on Dec. 4 that 340 shipping containers had been “used as temporary accommodations during the pursuit of the Mt. Kumgang tourism project.”

“Business operators [including Hyundai Asan] also agree on the need for ‘a complete revamping’ of certain rudimentary aspects,” he said.

Speaking at a Kwanhun Club invitational discussion at the Seoul Press Center that day, Kim acknowledged that “the facilities have not been managed and remained in neglect since tourism was suspended” in July 2008.

The “340 containers” mentioned by Kim were a reference to the container-based accommodations in the Kuryong area of Onjong Village within the Mt. Kumgang tourism zone and Mt. Kumgang Village at Kosong Port. His remarks provided a concrete explanation of the Unification Ministry’s plans shared in a Nov. 29 briefing by Deputy Spokesperson Kim Eun-han, who described a plan involving “first revmping the temporary facilities around Onjong and Kosong Port, which are not reusable.”

The South’s proposal for “revamping” (removing) certain outdated structures stands opposed to North Korea’s demands for the demolition of all South Korean structures in the Mt. Kumgang tourism area. During recent discussions, the North was described as applying pressure by insisting that it would tear the structures down itself if the South did not provide a plan and schedule for the demolition. No activities related to the actual demolition have yet been detected from North Korea in the Mt. Kumgang tourism area, sources said.

Kim acknowledged that North Korea had been “adamant in its position” and “consistently insisting on demolition.” Meanwhile, the administration has been partially revising its approach, openly acknowledging the need for “some servicing” over the course of its Oct. 28 proposal for working-level talks and Nov. 5 proposal for a joint inspection team to visit the North. Its efforts are an attempt to stop North Korea from unilaterally proceeding with the demolition while seeking a potential way forward toward resuming the tourism project. This situation was reflected in the remarks by Kim, who said that North Korea “might understand the revmping of neglected facilities as a ‘demolition.’”

Kim also commented on the “new path” that North Korean leader Kim Jong-un said he planned to take if negotiations with the US fail.

“North Korea has recently been dropping some hints, which generally fall into three categories,” he said. The three approaches include “beefing up cooperation with China and Russia, including a Russia visit by First Vice Foreign Minister Choe Son-hui” in terms of foreign relations; “strengthening deterrence, as seen with the missile launches” in military terms; and “building the economy through autonomous efforts amid ongoing sanctions” in internal terms.

“Two characteristics of North Korea’s recent economic policies have been the promotion of internal competition and focused priority investment in the tourism sector,” Kim Yeon-chul noted.

“The interesting thing is that their response to the sanctions has actually been to strengthen the role of the market [rather than returning to a stronger planned economy],” he said. His remarks cautiously predicted that the focus of the “new path” proclaimed by Kim Jong-un may not be on strategic military actions that stand to unsettle the Northeast Asia political situation, including nuclear testing and ICBM launches.

By Lee Je-hun, senior staff writer, and Noh Ji-won, staff reporter

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