Financial complex and upscale hotel construction presses ahead in Wonsan

Institute for Far Eastern Studies (IFES)

To develop the ‘Wonsan-Mount Kumgang International Tourist Zone’, plans have been put in place to build a General Financial Complex and five-star hotel in Wonsan.

Naenara (My Country), a North Korean propaganda website that targets an international audience, indicated that the goal of ‘Wonsan’s Chungdong General Land Development’ Investment Proposal released September 1, 2016 was to “develop Wonsan into a commercial and cultural exchange center, as well as a center for trade and financial transactions.”

According to the proposal, the target of investment is the Chungdong district and parts of the Sangdong district of Wonsan (Kangwon province) with a total area of 300,000 square kilometers. The total amount to be invested was set at USD 196,560,000.

In addition, the proposal sets out plans to first construct ten separate buildings, including 10 units of rental housing, a three-star hotel, an international finance complex, a department store, an indoor gym, and a restaurant for world cuisine.

The proposal adds: “in the surrounding area (of the center), world-class facilities including an ultra-luxurious five-star hotel called the Wonsan Hotel, a General Financial Complex, a General Office Complex, an International Exhibit, and a library are to be constructed.”

It also makes clear that existing housing, commercial facilities, offices and factories in the area will be demolished.

With respect to international investors, the proposals envisage that development will utilize the BOT (Built-Operate-Transfer) method. BOT is a method of funding infrastructure projects in which a contractor is given the right to operate a set of facilities for a prescribed period in order to recover both the initial investment and a profit, before control of the facilities reverts to the contracting party.

The website states that “the Committee to Promote the Development of the Wonsan-Mount Kumgang International Tourism Zone was chosen for the spill-over effects for both the Wonsan area and the zone as a whole.”

Moreover, the separate ‘General Finance Center Proposal’ was also released via Naenara on the same day– the building is set to be 15 stories high, with additional two basement floors.

The complex has a total area of 1,500 square meters, the actual building area of 800 square meters, and total floor of 12,000 square meters. The building will play host to banks, office space and restaurants.

The proposal emphasized that “the development of the Wonsan-Mount Kumgang Tourist Zone into a world-class tourist site reflects the firm will of our party and government . . . . The future tourist zone will radiate the light as the ‘East’s Pearl’ transformed into a renowned tourist destination both in East Asia and more broadly the entire world.”

Here is the text from the Naenara article (PDF).

 

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