Mt. Kumgang business on the edge

The continuing or closing of the Mt. Kumgang tour business seems to be just around the corner.

Hyundai Asan, the main body to take control of Mt. Kumgang business, sent just $6 million to North Korea, half of the amount of the currently due payment, without negotiation in advance of the Jan. 30, dead-line; the final payment has to be paid by the end of January. This half of the payment, in fact, may be understood as non-fulfillment of the contract by Hyundai for North Korea, bringing about the nullification of that inter-Korean business.

A Hyundai source explained that unless they reduced payments temporarily, because of cumulative deficit, it might become impossible to continue business.

Now there is just left for North Korea to choose whether to accept the money or not. If the Mt. Kumgang business closed, Hyundai Asan would lose their early investment money, $624 million for facility investment and chartering a cruise vessel, and North Korea would not get any money for allowing Mt. Kumgang tours, estimated at $600 million by Feb. 2005. It would also freeze the Inter-Korean relationship and worsen current North Korean projects such as the development of the Kaesung industrial complex. A government official said that it would not interfere because the tour business is completely in the private sector.