North Korea is losing patience with South Korea because of its refusal to send tourists to the Mount Kumgang resort and threatened to completely sever its business relationship with Hyundai Asan, the South Korean contractor for cross-border tours.

A statement from the North’s Asia-Pacific Peace Committee informed Hyundai that North Korea would retract the company’s monopoly over the tours, which was supposed to be valid for 30 years, or until 2028. The Asia-Pacific Peace Committee is a state organ that oversees inter-Korean affairs.

A Seoul official said yesterday that the North should withdraw its threat “immediately.”

“We have sent the South countless requests for the resumption of cross-border tours and offered fair and constructive measures in regard to the South’s position,” the Asia-Pacific Peace Committee said in the statement. “We waited as long as we could for the past three years. There is no hope that Mount Kumgang tourism will be restarted.” 

The statement also accused Seoul of “kicking aside negotiations.” 

The statement said the North Korean government would take over Mount Kumgang tourism and could award responsibility for tours to another foreign business partner. But tour groups from South Korea, it said, would still be handled by Hyundai Asan.

The South Korean government didn’t issue an official response, but an official from the Ministry of Unification said yesterday: “Unilaterally changing the content of the contract is a violation of agreements made between business partners in the South and North, as well as agreements between the two countries. This is also not in alignment with international practice. [North Korea] should immediately withdraw its action.”

Seoul is planning to work with Hyundai Asan officials to figure out a response, the official said, and if needed they will request assistance from the international community.

When North Korea offered Chinese tour groups visits to Mount Kumgang last year, Seoul asked Beijing not to accept, and China complied. 

Hyundai Asan expressed regret for the North’s statement Saturday.

“Agreements made with North Korea regarding Mount Kumgang tourism cannot be canceled and cannot lose their power through unilateral notifications; they should be abided by,” Hyundai Asan said in an official statement. “North Korea has acknowledged that Hyundai should be responsible for cross-border tours from the South, and because they said they will keep their loyalty and cooperate with Hyundai, we will make efforts to resume Mount Kumgang tours.”

The Mount Kumgang tours began in November 1998, and by 2000, tens of thousands made the trip every month. A total of 199,966 tourists visited the mountain resort until tours stopped in 2008, according to Hyundai Asan. In 2008, a North Korean soldier shot a South Korean female tourist who accidentally wandered into an off-limits area during a morning stroll.

Hyundai Asan has so far recorded 357.3 billion won ($333.1 million) in losses since the tours were halted and a little more than a dozen staff are still at the resort for maintenance.


By Christine Kim [christine.kim@joongang.co.kr]