N. Korean firm calls for talks with Hyundai over mountain resort

The head of a North Korean company responsible for attracting foreign capital on Tuesday proposed holding a meeting with a South Korean firm to resolve a row over assets at a scenic mountain resort in the North.

   Park Chol-su, head of Daepung International Investment Group, said he wants to meet with South Korea's Hyundai Asan to discuss how to handle its assets at the North's Mount Geumgang.

   Hyundai Group's inter-Korean business arm has invested $196 million in building hotels, a restaurant and other facilities at the resort since 1998 when the North opened it for South Korean tourists.

   The South Korean company is the largest investor in the cross-border program that was once seen as a key symbol of reconciliation on the divided Korean Peninsula.

   South Korea suspended the joint tour program following the 2008 shooting death of a tourist by a North Korean soldier near the resort.

   Seoul has since been demanding Pyongyang's formal apology for the incident and security measures for its tourists.

   The North recently expelled South Korean workers from the resort and vowed to legally dispose of all South Korean assets after it unsuccessfully tried to pressure Seoul to resume the tour program.

   Still, Park said in an interview with Yonhap News Agency on Tuesday that it's up to Hyundai Asan whether it can run or lease or sell its assets in the resort.

   Hyundai Asan said it had not received any official proposal from Park's company.

   Park's comment came days after North Korea made a trial run of a cruise from its northeastern port city of Rajin to the resort on its east coast.

   Park said the North will hold a second trial cruise for foreign investors later this month before starting the tours for ordinary tourists in late October.

   In Seoul, the state-run Korea Tourism Organization, which also has assets at the resort, urged North Korea to immediately withdraw its previous move to seize the assets.

   Last year, the North seized or froze all South Korean assets at the resort before vowing to dispose of the assets in recent weeks in anger over the suspension of the tour program.

   Also on Tuesday, Seoul held a government task force meeting to set a strategy on how to deal with the North's unilateral move.

   Officials said following the gathering that South Korea has decided to officially request that foreign countries do not make investments in the Mount Geumgang region and to refrain from sending tourists to the resort. It claimed that investments will violate South Korea's rights.

   The meeting was attended by policymakers from the unification, foreign affairs, finance, justice and culture ministries.

 (Yonhap News)