Free Support with Inter-Korean Cooperation Fund for Mt. Keumgang Project

The government gave a grace period to the Korea National Tourism Organization for the payment of the interests and the principal for the Inter-Korean Cooperation Fund loan until 2 years after the ground tour begins and the special district is designated by the North. It was decided by the 91st Inter-Korean Cooperation and Exchange Organization Committee presided by Unification Minister Chung Se-Hyun yesterday.

Consequently, the Korea National Tourism Organization will be free from the obligation to pay the interest and the principal of 90 billion won, including 45 billion won that it borrowed from the Inter-Korean Cooperation Fund for the Mt. Keumgang project since June last year and another 45 billion won that will be loaned soon.

However, the term `until 2 years after the ground tour begins and the special district is designated by the North` actually does not specify the limits. The opposition party is expected to oppose actual free support.

The government officials explained that the government shall receive the 4 percent interest from 2 years after the ground tour begins and the special district is designated by the North, and when KNTO balances its account, the principal will be paid back with additional 1 percent interest for three years before it begins paying back the principal.

Young-Sik Kim spear@donga.com