Hanhwa Group to Build Resorts in Gaesong

Hanhwa Group and Hyundai Group will join hands and jump together to build a resort complex in Gaesong.

The president of Hanhwa Resort Corporation, an affiliate of the Hanhwa Group, Kim Gwan-soo said during a recent exclusive interview with Dong-A Ilbo, “We received an investment proposal from Hyundai Asan asking us to join in a cooperative business linked to Gaesong tourism. Although quite some time is needed and the enormous and burdensome country risk of North Korea, I judged that as the leaders of the leisure business, we should jump in.”

He added, “I visited and returned from Gaesong on September 7 in order to review the feasibility of the business. If the Gaesong tourist business pursued by Hyundai becomes active, lodging facilities will be critical. However, when I went there, I found North Korea’s facilities to be so outdated – at the level of Korean inns back in the 1960s.”

“Creating a resort complex in Gaesong will not only include building condominiums and hotels but also golf courses.”

It has been confirmed that prior to participating in the development and investment in Gaesong, Hanhwa had decided to build a large scale condominium in the Mt. Geumgang special tourist area, and it is in the final stages of negotiations with Hyundai including land negotiations.

Hanhwa Resort Corporation, the new partner of Hyundai Asan, is the leader in the domestic leisure business. As of last year, its capital is 81 billion won, with sales amounting to 270 billion won and three million customers having used their resorts.

Hanhwa Resort is also focusing on overseas expansion. Last year, it bought Nagasaki’s Ocean Palace Golf Course, and it is pursuing additional golf courses in the Tokyo and Fukuoka areas, as well jointly investing in resorts in China, Vietnam, Australia, and New Zealand.

Sang-Soo Kim ssoo@donga.com