ID :
209444
Mon, 09/26/2011 - 13:17
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Shortlink :
https://oananews.org//node/209444
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Report estimates business loss from suspended Kumgang program at W634 bln
SEOUL, Sept. 26 (Yonhap) -- South Korean firms' business loss from a suspended tourism project in North Korea's Mount Kumgang has snowballed to more than 634 billion won (US$531 million) since its operation was suspended in 2008, a report showed Monday.
Seoul suspended the joint tour program following the 2008 shooting death of a tourist by a North Korean soldier at the resort, demanding a formal apology for the incident and safety measures for tourists to prevent recurrences in the future.
The North, however, rejected such demands and recently expelled South Korean workers from the resort. It vowed to legally dispose of all assets after it unsuccessfully tried to pressure Seoul to resume the tour program, which was once seen as a key symbol of reconciliation on the divided Korean Peninsula.
In a report submitted for a parliamentary audit, the Ministry of Culture, Sports and Tourism estimated that the combined damage has amounted to 634.3 billion won from July 2008 to August this year, an assessment based on reports by the state-run tour agency, main operator and local tour companies that participated in the mountain resort project.
South Korea's Hyundai Asan, the main corporate investor in the resort project, had been guaranteed exclusive operating rights by Pyongyang. The state-run Korea Tourism Organization also invested in the resort.
Hyundai Asan reportedly invested US$196 million in building hotels, a restaurant and other facilities at the resort since 1998 when the North opened it for South Korean tourists.
Seoul suspended the joint tour program following the 2008 shooting death of a tourist by a North Korean soldier at the resort, demanding a formal apology for the incident and safety measures for tourists to prevent recurrences in the future.
The North, however, rejected such demands and recently expelled South Korean workers from the resort. It vowed to legally dispose of all assets after it unsuccessfully tried to pressure Seoul to resume the tour program, which was once seen as a key symbol of reconciliation on the divided Korean Peninsula.
In a report submitted for a parliamentary audit, the Ministry of Culture, Sports and Tourism estimated that the combined damage has amounted to 634.3 billion won from July 2008 to August this year, an assessment based on reports by the state-run tour agency, main operator and local tour companies that participated in the mountain resort project.
South Korea's Hyundai Asan, the main corporate investor in the resort project, had been guaranteed exclusive operating rights by Pyongyang. The state-run Korea Tourism Organization also invested in the resort.
Hyundai Asan reportedly invested US$196 million in building hotels, a restaurant and other facilities at the resort since 1998 when the North opened it for South Korean tourists.
