N. Korea limits Hyundai’s exclusive tourist rights to Kumgang

North Korea announced Thursday a rule limiting Hyundai Group’s exclusive rights to conducting tourism businesses around Mount Kumgang and allowing foreigners to visit and invest in the mountain resort area.

This was apparently a follow-up measure to Pyongyang`s announcement in late April that it will exercise its sovereignty by creating a "special tourism district" in Mount Kumgang. The proclamation came immediately after the North spoke of secret talks with South Korea on an inter-Korean summit Wednesday.

According to article 4 of the Act on an International Tourist District in Mount Kumgang, which announced by the North’s state-run news agency Thursday, "A company, individual or economic organization of another country can invest in the International Tourist District. South Korea, South Korean expatriates, government organizations or groups of the Republic of Korea may invest.”

The act on tourism in Mount Kumgang, which was legislated to support Hyundai Asan Corp.’s tourism project in 2002 in that area, said, “South Korea and South Korean expatriates” first but the North changed the order in the new act.

The new act said the state (North Korea) encourages investment in the international tourist district and guarantees privileges in economic activities to investors, adding a special tariff system will also take effect. Investors can invest in a golf resort and casinos as well as accommodations, restaurants and stores.

Free access to mail, telephone, fax and the Internet was added to the new law.

A South Korean government source said, “North Korea intends to aggressively attract foreign investors or tourists to Mount Kumgang,” adding, “It seems that it wants to pressure the South by releasing its independent development plan of Mount Kumgang following its announcement of secret talks between the two Koreas.”

Despite mounting tension triggered by Pyongyang`s announcement of a “head-on” confrontation and the secret talks, South Koreans working at the inter-Korean Kaesong industrial complex and Mount Kumgang passed the inter-Korean border as usual. Nothing abnormal was detected in the Kaesong complex, which continued production activities.

lightee@donga.com