'North Korea May Risk Gaeseong Project'

Minister of Unification Hyun In-taek predicted Tuesday that in the worst-case
scenario, North Korea may go ahead with the closing of the Gaeseong industrial
complex if confrontation over the joint tourism project shows no sign of abating.
Previously, the North separated the Gaeseong complex from inter-Korean relations.
During a National Assembly session, Hyun expressed worries that the communist state, which is notorious for brinkmanship diplomacy, could keep playing hardball
until the 1.3-trillion-won investment project finally falls flat.
Legislators rebuked Minister Hyun for the slow response to North Korea's plan to
freeze South Korea's property assets at the Mt. Geumgang resort.
Rep. Chung Ok-nim of the governing Grand National Party (GNP) alleged that the North stepped up pressure on the South step by step with multiple cards but that Seoul had few options available to retaliate.
``I wonder if the South, by repeating the principled approach alone, will actually help end the standoff. I believe standing firm on principles will not be effective enough unless the approach entails bold actions,'' Chung said.
Hyun responded that his ministry was looking into several tactics to cope with the rising tension but that he could not go over the details at the moment.
``There has been no change in our stance that the safety of tourists is not an issue with which concessions can be made,'' he said. His repeating the principled approach without a concrete action plan drew criticism from lawmakers.
Rep. Lee Hoi-chang, leader of the Liberty Forward Party, warned that South Korean investors will be hit hard by the North's freeze of South Korean assets at the resort and the possible seizure of the properties.
``Having said that, I wonder if there are any effective measures that the government can take to protect the private entities from business losses,'' Lee asked. The minister claimed that there are some measures the ministry could take but declined to elaborate what those options would be.
The North Korean authorities froze five assets near the resort area which belong to the South Korean government and the Korea Tourism Organization.
The North went ahead with the action after South Korea had not responded to its demand - to resume the Mt. Geumgang tours, which have been suspended since July 2008 after a South Korean tourist was shot dead there.
Showing few signs of backing down from its stance, the ministry reiterated that it will allow its citizens to travel to the resort area only when the North makes it official that South Korean tourists will be safe during their time there.
North Korea insisted its leader Kim Jong-il already stated that South Korean visitors will be safe during the tour and that the verbal commitment was enough.

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