To Remit The Overdue Payment For Mt. Kumkang Tour Business To North Korea On July 2

The government officially authorized a 90 billion won loan with an annual interest rate of 4 percent to the Korea National Tourism Organization (KNTO) yesterday at a meeting of the Inter-Korean Exchanges and Cooperation Promotion Committee presided over by Unification Minister Lim Dong-won.

78.4 billion won, which is 30 percent of the KNTO assets, is a credit loan, and the rest amount of 11.6 billion won is loan on security. The condition for loan is a partial payment in 5 years following a 3-year grace period. The interest needs to be paid every 6 month.

A government official said that ``the KNTO completed its contract on loan with the Export-Import Bank of Korea yesterday and was provided 45 billion won for the investment and management funds. The remaining funds will be provided depending on the development of the business.`` This official also said that ``the KNTO received an additional amount of 30 billion won in the form of a commercial paper (cp) from Shinhan Bank and Housing and Commercial Bank. The overdue payment it owes to North Korea for the Mt. Kumgang tour business can be supplied by the loan,`` said the official. He also said that ``Hyundai Asan and the KNTO will send the overdue payment of 29 billion won ($22 million) to North Korea in July 2. Therefore, the dialogue for the Mt. Kumgang tour business will resume followed by the South-North government cooperation for the land route tourism.`` The KNTO and Hyundai Asan will send a team of Mt. Kumgang tour business, consisted of 400 government and private experts, to the Jangjun Port and other Mt. Kumgang related regions with the 2 nights-3 days schedule on July 20. Meanwhile, the government decided to pay 250 million won, that is, the cost for the participation in the Mt. Kumgang Minjok Tongil Forum on July 15, from the Inter-Korean Cooperation Fund in the name of supporting the inter-Korea visiting of the South-North civilians.

Kim Young-Sik spear@donga.com