In a reversal of its previous stance the government will assist Hyundai Asan in its North Korean Mount Kumgang tour project a high ranking official revealed Sunday. The Ministry of Unification is actively studying granting licenses for a casino and duty free shop on ferry vessels used on the tour, and is seeking to initiate dialogue with North Korea to allow overland tours. The source said that the reason for the sea change is that the tour is not only a business venture, but also part of North-South improved relations.
He added that the government was not about to let the project fold, because of non-profitability and liquidity problems. Hyundai Asan failed to pay all related fees to the North in February and March, despite negotiating a 50% reduction from US$12 million; it sent US$2 million in February, out of a due US$6 million and nothing in March.
The government decision is certain to raise controversy over assistance and special benefits being given to a private business. It said that Hyundai's license request for a casino and duty free shop had been put on hold, but was now being reconsidered due the desperate straits the company has found itself in.
(Choi Byong-mook, bmchoi@chosun.com)
