N. Korea Unveils Law to Attract Foreign Investment at Mountain Resort

SEOUL (Yonhap) -- North Korea said on June 2 that it would allow South Korean and other foreign investors to build a casino, golf course and night club in a scenic mountain resort in an apparent move to earn hard currency by attracting foreign tourists.
The North said it would also ensure unrestricted access to the Internet for South Koreans and other foreigners at Mount Kumgang during their visa-free trips to the site.
The North announced the package of moves in a law on June 2, just days after Pyongyang vowed not to engage with Seoul any longer and threatened to attack Seoul for anti-Pyongyang "psychological warfare."
Tensions have persisted between the two rival Koreas over Pyongyang's two deadly attacks on the South last year that killed 50 South Koreans.
North Korea has refused to take responsibility for the sinking of a South Korean warship and shelling of a frontline South Korean island, keeping the two sides from moving their relations forward for more than a year.
The political impasse also led to the collapse of secret inter-Korean meetings last month allegedly meant to set up summit talks between the leaders of the two Koreas.
Still, the North's rubber-stamp parliament adopted the law on May 31 to "turn the world famous Mount Kumgang into a special zone for international tours," according to the North's official Korean Central News Agency (KCNA).
The law also provides foreign investors with preferential conditions for economic activities and grants their remittance of their profits.
Lee Jong-joo, a spokeswoman for South Korea's Unification Ministry handling inter-Korean affairs, said the North's move appears to demonstrate its commitment to attract foreign investment to develop the resort.
The North's announcement came months after Pyongyang unilaterally terminated exclusive tourism rights for Hyundai Asan, a key South Korean tour operator in the mountain resort.
A spokesman for Hyundai Asan said his company had no immediate comment on the North's announcement. He asked not to be identified as he was not authorized to speak to media.
The two Koreas launched the joint tour program to the scenic mountain in 1998 as part of moves to boost cross-border reconciliation and cooperation, providing a legitimate source of hard currency to the cash-strapped North.
However, Seoul suspended the tour program in 2008 when a female South Korean tourist was shot dead after straying into an off-limits military zone near the resort.
Pyongyang claims it has done everything to shed light on the shooting and guarantee the safety of future tourists, but Seoul says it has yet to receive a formal apology for the shooting or promises to enhance safety.