Monday, April 26, 2010

`N. Korea to Directly Take Over Mt. Kumgang Tour`

North Korea seeks to directly handle tours to the Mount Kumgang area

after forcing South Korea out of the venture, said a source on North

Korean affairs yesterday.

Korea Taepung International Investment Group, an agency under the

North’s powerful National Defense Commission, has reportedly recruited

Chinese companies to help operate the tour since January this year.

The source said, “Negotiations have significantly progressed in certain

aspects,” adding, “I understand the North Korean leadership is

considering directly operating the Mount Kumgang tour by getting

Taepung or an agency under the National Defense Commission to hire

multiple Chinese companies as agencies after forcing the Hyundai Group

out of Mount Kumgang and Kaesong.”

Another informed source said, “Since Taepung is an agency that holds

overall authority over attracting investment for the North’s national

development, the group is believed to be advising and supervising

efforts to resume the Mount Kumgang tour as well.”

On this, a South Korean government source said, “Even if the North

severs ties with Hyundai Asan Corp., complicated legal action will

continue over the North’s violation of the contract,” adding, “No Chinese

company will seek to serve as a comprehensive business operator, so

the new plan appears to be the most practical alternative for North

Korea.”

If Taepung or an agency under the defense commission starts to

operate the tour directly, the tour program will likely be operated under

a completely different system.

The tour’s South Korean operator, Hyundai Asan, has wielded

comprehensive and monopolistic rights to the venture, but North Korea

appears to have taken over as the operator, with multiple foreign

companies taking part.

An agency under the North’s defense commission or military will likely

step forward to operate the tour in lieu of Pyongyang’s Asia-Pacific

Peace Committee under the ruling Workers’ Party or the Landmark

General Development Bureau under the North Korean Cabinet.

http://english.donga.com/srv/service.php3?bicode=050000&biid=2010042685488


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