HMM abandons Mt. Kumgang project

Hyundai Merchant Marine confirmed its notice to the Hyundai Asan Corp., a body established for Mt. Kumgang business, April 14 that it will step back from this business.

Rumors have been flying that HMM will desert its Mt. Kumgang business operation because it forced HMM into the red, despite relatively strong sales. This was the first time for high-up officials at HMM to publicly express intentions to abandon the project.

A high official at HMM expressed hopes that Hyundai Asan would undertake all parts of the tourism business such as the Kumgang cruise operation and collection of tourists. Accordingly,, the president of Hyundai Asan, Kim Un-Kyu, and the chairman of the Hyundai Group, Cheong Mong-Heon, are cautiously thinking over the future direction of the company and its business.

A spokesman from Hyundai Asan set forth that it would do whatever it takes to continue the Mt. Kumgang business despite tremendous difficulties in taking over the Mt. Kumgang business under present conditions, i.e. HMM will neither operate cruise vessels, nor collect tourists. If HMM gave up Mt. Kumgang project, those duties might be ascribed to a third company or Hyundai Asan on its own.

He also added that the important thing now is how to continue this business and solve the accumulated debt problem, rather than whether HMM is involved or not. Nation wide attention and supply is so necessary, he stressed.

Hyundai Asan wasted all of its capital, 450 billion won, on the Mt. Kumgang business. HMM incurred losses of 200 million won a day in general.

HMM saw an 87.6 billion won loss due to involvement in the Mt. Kumgang business, even though it marked over 200 billion won in the black, discounting exchange rates losses.