Archive for the ‘International Governments’ Category

Chinese Take Complete Control of Mines

Tuesday, May 11th, 2010

Daily NK
Min Cho Hee
5/11/2010

In a move sure to add weight to suspicions that North Korean industry is in the midst of a very serious funding crisis, a source has reported to The Daily NK that the Chinese partner has taken unprecedented power in a new mining joint venture in North Hamkyung Province.

The inside source reported on Sunday that when Saebyul Coal Mining Complex, a North Korean mining management organization, sealed a contract between Gogunwon Coal Mine, Ryongbuk Youth Coal Mine and a Chinese enterprise, it agreed to hand over an unheard of degree of discretion in affairs of personnel management, materials and working methods to the Chinese enterprise.

The source explained, “Now, the Chinese enterprise has authority over staffing, food distribution, wages and materials. Accordingly, it has reduced the administrative staff and drastically improved productivity.

According to the source, the Chinese are guaranteed operational independence free from the control and instruction of the Saebyul Party committee, and take 60% of net profits. If true, this is a new model of collaboration and cooperation in business between China and North Korea.

The source added, though, “The number of people in the Party committee has also been reduced, though it is unlikely to be got rid of completely due to the nature of the North Korean system.”

He said, “Since last year, North Korea has been trying to attract Chinese investment and three or four Chinese companies have been in negotiations over mine development in this way.”

The Chinese enterprise plans to convey the lignite produced in the mines to China, process it there and sell it domestically.

The source noted, “North Korean workers are delighted with this method of collaboration. They get guaranteed wages and food, and the working environment has also improved thanks to new, stronger mining timbers, so productivity has increase.”

In the cafeterias at the mines, they serve 900g of rice to everyone, and pork and eggs, which workers like. According to the source, “Workers want to take meals served in the cafeteria home for their family members. In this worker-friendly mood, Party cadres are unable to complain.”

Gogunwon Coal Mine and Ryongbuk Youth Coal Mine are both located in the “Gogunwon Workers” district of Saebyul, North Hamkyung Province. They both contain good quality coal seams, and are among the best coal mines in North Korea.

Another source from North Korea suggested on Monday that North Korea is losing a lot of control of the economy in its northern provinces, saying, “The purse strings in the border regions of our country have basically been handed over to China, and ‘our socialist pride’ is in the hands of China. Any factory where they produce even a small amount of goods has been invested in by the Chinese”

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Why does China continue to support North Korea?

Thursday, May 6th, 2010

Andrei Lankov writes in the Korea Times:

So after months of rumors and a couple of false reports, Kim Jong-il finally departed for China. This time his visit produced a palpable irritation in Seoul. Suspicions about Pyongyang’s involvement in the Cheonan disaster are mounting, so some South Korean politicians saw China’s willingness to invite the North Korean leader as a sign of tacit support for Pyongyang’s policy. This led to an outpour of critical statements, which are certain to have no impact on China’s actions, of course.

To start with, China ― in spite of all rhetoric of “eternal friendship” ― is no admirer of Kim Jong-il’s regime and is frequently annoyed by the North Korean antics. China does not want Pyongyang to go nuclear, since nuclear proliferation threatens China’s own privileged position of a “legitimate” nuclear power. China also worries that North Korea’s nuclear program might trigger a nuclear arms race in East Asia, producing a nuclear Japan and perhaps, a nuclear Taiwan. Moreover, China rightly sees the North Korean economic system as irrational and wasteful.

Nonetheless, China supports North Korea. Throughout the past few years when South Korean and U.S. aid dried up, famine in North Korea was prevented, above all, by free or subsidized shipments of grain from China. China is the largest investor in and trading partner of North Korea. Why do Chinese continue to invest money into supporting the regime which they do not particularly like and do not see as their reliable ally?

From time to time some people in Washington and Seoul express their hope that China can be somehow persuaded to stop its support of the North or to use its supposed leverage to influence Pyongyang policy (like, say, pressing North Korea into denuclearization). After the second North Korean nuclear test in 2009, China chose to support the U.N. sanctions and there were statements that China finally was “in the same boat as the United States.” Alas, this is wishful thinking. China is not in the same boat, and will never be. There are good reasons why China supports the North, and these reasons are likely to remain valid for the foreseeable future.

Yes, China does not want a country in its neighborhood to acquire nuclear weapons. Neither it is happy about military provocations of any kind. However, there are two other concerns which are far more important for China to keep the region stable and to keep Korea divided.

Stability is a keyword for the Chinese policy. China concentrates on economic growth and needs a peaceful and predictable environment in order not to be distracted from this goal. Hence, any crisis in the vicinity of China is an anathema for the Chinese strategists and should be avoided at all cost.

Another, arguably less important, goal is to keep Korea divided. Taken into consideration the current balance of power, unification is likely to lead to absorption of the impoverished North by the rich South. For China it might mean the emergence of a stronger U.S. ally ― or, at least, another “unruly democracy” ― right on its border. China can survive such a turn of events, to be sure, but it would prefer to maintain North Korea as a strategic buffer zone.

Alas, in order to really influence North Korea’s behavior, one has to play hardball. Subtle measures will not work, since the North Korean government does not care that much about economy or even about survival of its own population. In order to have an impact, China would have to virtually close the border completely and stop all trade with the North. A senior South Korean diplomat described this problem in a private conversation by a good allegory: “China does not have leverage when it comes to dealing with the North. What China has is a hammer.”

But China must have a mighty good reason to wield this hammer since such extreme pressure can easily lead to a system collapse. This collapse will make the situation very volatile. Crowds of refugees, the nuclear weapons and material getting to the black market, numerous diplomatic complications ― those are not the problems China is eager to deal with. Finally, collapse is likely to produce a unified Korea which is not China’s most preferable outcome.

Therefore, China prefers to spend some resources keeping the North Korean regime afloat in order to maintain the status quo and prevent or, at least, postpone a major crisis. It also wants to minimize the risk of North Korea being involved in excessively dangerous actions, but this goal is of secondary importance.

At all probability, this time we will see another repetition of the old game. Chinese will insist that North Korea should come back to the six-party talks (Beijing’s pet project), and also should restrain itself. Kim Jong-il will claim his sovereign rights to run his state as he pleases while inquiring how much aid he is going to get for some minor concessions. The Cheonan affair is unlikely to be discussed at all ― even if Chinese bring up the question, the North will deny responsibility, claiming that all accusations are results of the “smear campaign waged by the South Korean warmongers.”

And what will be the net result? Perhaps, we can see the contours of a likely deal: North Korea will promise to go back to the six-party talks while China will reward Pyongyang for this by aid and subsidized trade. So, China will be satisfied with maintaining both its international prestige and stability in its neighborhood while the long-delayed six-party talks will finally restart, to continue for a while, until the next crisis. Will the talks ever produce their intended result ― the “complete and verifiable elimination of North Korea’s nuclear weapons programs?” Of course, not. But has that not been clear for years?

Read the full story here:
Why does China continue to support North Korea?
Korea Times
5/6/2010

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Kim Jong il in China…in case you had not heard

Tuesday, May 4th, 2010

Here are some articles about it:

North Korea’s Kim Jong Il arrives in China, amid internal, external tensions
Washington Post
Lauren Keane
5/4/2010

Kim Jong-il Arrives in China
New York Times
Choe Sang-hun
5/3/2010

North Korean leader in China seeking cash, clout
Los Angeles Times
Barbara Demick and John M. Glionna
5/3/2010

North Korea’s Kim seeks lifeline in China

Reuters
Royston Chan
5/3/2010

Kim Jong-il Stops Off in Chinese Boomtown
Choson Ilbo
5/5/2010

Who Is with Kim Jong-il on His China Trip?
Choson Ilbo
5/4/2010

North Korea’s Kim ‘visits China’
BBC
5/3/2010

Here are some photos of his train.

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DPRK food aid runs out next month

Tuesday, May 4th, 2010

According to Bloomberg:

United Nations food aid to North Korea will run out the end of next month following a drop in international donations after the country detonated a nuclear device, the World Food Program said.

“We have resources to carry us through to June,” Lena Savelli, a Beijing-based spokeswoman for the UN agency, said in a telephone interview today. “We quite urgently need more donors to come forward and give us resources.”

The agency is in talks with donors on how to extend the program as it seeks to continue operations, she said. Kim Jong Il’s regime has relied on outside aid to feed its 24 million people since the mid-1990s when famine caused by floods, drought and economic mismanagement is estimated to have killed as many as 2 million people.

The aid shortfall may put further pressure on Kim following a botched currency revaluation late last year and tougher UN Security Council sanctions after a second nuclear test in May 2009. The Council should also consider the totalitarian regime’s human rights violations to force changes, Vitit Muntarbhorn, UN special rapporteur on North Korea’s human rights, said in a May 1 interview in Seoul.

“It’s a very helpless situation, sadly, for the people,” he said. “Given that the Security Council is the law- enforcement organ of the United Nations, it’s incumbent upon them to take it up,” said Muntarbhorn, 57, whose six-year term as the official for North Korea, expires in June.

Read the full article here:
North Korea’s Food Aid Will Run Out Next Month, UN Agency Says
Bloomberg
Bomi Lim
5/3/2010

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North Korea has plenty of doctors: WHO

Tuesday, May 4th, 2010

According to Reuters (via the Washington Post):

North Korea’s health system would be the envy of many developing countries because of the abundance of medical staff that it has available, the head of the World Health Organization said on Friday.

WHO Director-General Margaret Chan, speaking a day after returning from a 2-1/2 day visit to the reclusive country, said malnutrition was a problem in North Korea but she had not seen any obvious signs of it in the capital Pyongyang.

North Korea — which does not allow its citizens to leave the country — has no shortage of doctors and nurses, in contrast to other developing countries where skilled healthcare workers often emigrate, she said.

This allows North Korea to provide comprehensive healthcare, with one “household doctor” looking after every 130 families, said the head of the United Nations health agency, praising North Korea’s immunization coverage and mother and child care.

“They have something which most other developing countries would envy,” Chan told a news conference, noting that her visit was a rare sign of the communist state’s willingness to cooperate with outside agencies.

Chan’s comments marked a significant change from the assessment of her predecessor, Gro Harlem Brundtland, who said in 2001 that North Korea’s health system was near collapse.

Chan, who acknowledged that countries that she visits always try to look good while pointing to where they need help, met a series of North Korean officials, visited several hospitals, and also talked to Pyongyang-based diplomats, United Nations officials and representatives of the Red Cross.

The authorities acknowledge there is a problem with malnutrition, she said, but things have become better since famine in the 1990s and a series of natural disasters in 2001.

“Nutrition is an area that the government has to pay attention (to) and especially for pregnant women and for young children,” Chan said.

NO SIGNS OF OBESITY

Chan spent most of her brief visit in Pyongyang, and she said that from what she had seen there most people had the same height and weight as Asians in other countries, while there were no signs of the obesity emerging in some parts of Asia.

But she said conditions could be different in the countryside.

News reports said earlier this year that North Koreans were starving to death and unrest was growing as last year’s currency revaluation caused prices to soar.

Chan, who described her visit as “technical and professional” — in other words avoiding politics — said the North Korean government’s readiness to work with international agencies, such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, was encouraging.

The Global Fund requires countries it works with to provide sound data, account for resources contributed and allow access by officials, she noted.

“I can confirm that at least in the area of health the government is receptive to engagement with international partners,” she said.

“They are receptive to requests for increasing transparency — have a better quality data — and being held accountable for the resources flowing into the country to improve health.”

North Korea, whose human rights record has been strongly condemned by U.N. experts, is refusing to return to six-party talks about its nuclear program, which has led to U.N. sanctions being imposed after a nuclear test in May last year.

Tension is increasing with South Korea, with which the North fought a war in 1950-53, after the sinking of a South Korean naval vessel last month for which Seoul increasingly suspects Pyongyang.

But Chan praised a joint project between North and South Korea to improve women’s and children’s health, which she said was promoting dialogue and trust between the two rivals.

Last month, the WHO said North Korea has reduced deaths from surgery and among women in childbirth under the South Korea-funded program.

The Wall Street Journal calls out Ms. Chan:

Greetings, comrades. World Health Organization Director-General Margaret Chan has returned from Pyongyang with wonderful news. The Democratic People’s Republic of Korea is making great strides in health care, with one “household doctor” for every 130 households. Thanks to on-the-spot guidance from Dear Leader Kim Jong Il, North Korean doctors selflessly choose not to emigrate and have even conquered the decadent West’s problem of obesity!

All right, we exaggerate. But only the part about the Dear Leader. Ms. Chan’s surreal statements last Friday, as reported by several wire services, really did include praise for North Korean health care and the lack of obesity. “They have something which most other developing countries would envy,” the global health administrator gushed. In her guided tours, she saw few signs of malnutrition, and the people in Pyongyang were the same height and weight as other Asians.

That’s hardly consistent with the reports of other visitors, or the accounts of North Koreans fleeing starvation—a trend on the upswing again after a poor harvest and harsh winter. Even Ms. Chan’s predecessor described the North’s health-care system as near collapse in 2001, and since then the North has continued to depend on foreign aid to feed one-third of its population. As for the abundance of doctors, the North’s declaration on the WHO website ought to arouse suspicion: “During the period 2001-2003, the number of doctors was increased by 104 percent, the nurses 125 percent and the midwives 107 percent.”

It appears Ms. Chan is either winking at the reality to maintain contact with the North or she allowed herself to be fooled. Her own organization’s doctors have described appalling conditions in North Korean hospitals, such as the lack of running water and electricity.

But then this is nothing new for the WHO. In the 1970s, the United Nations agency promoted Mao Zedong’s vision of “barefoot doctors” to serve the rural poor—even as China’s health-care system was collapsing, along with the rest of society, under the strain of the Cultural Revolution. Today the WHO has become a cheerleader for Cuban health care. As long as a totalitarian state gives plenty of poorly trained people the title of doctor, fudges its health statistics and takes visiting officials on tours of Potemkin hospitals, the U.N. seems happy to give its seal of approval.

Ms. Chan’s testimony can be read here.

Hat tip to a reader.

Read the full story here:
North Korea has plenty of doctors: WHO
Reuters
Jonathan Lynn
4/30/2010

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DPRK looking for Chinese investors in Taebong gold mine

Tuesday, May 4th, 2010

According to the Daily NK:

The chairman of North Korea’s State Development Bank, Jeon Il Chun visited China on April 8, reportedly to try and bring Chinese investment to Daebong Mine, located near Hyesan, Yangkang Province.

Daebong Mine is one of North Korea’s major gold mines, managed under the auspices of the No. 39 Department of the Central Committee, a special department charged with raising funds for Kim Jong Il’s personal use. Jeon Il Chun is the person in charge of the No. 39 Department.

Attempts to sell shares in a gold mine directly controlled by the 39 Department, Kim Jong Il’s own private safe, to China seem to indirectly imply that Kim is suffering from a debilitating foreign currency supply crisis.

One Daily NK source in China who is well-acquainted with North Korean affairs reported that while Jeon was in China, he met with the management of three or four Chinese enterprises which already have investments in North Korea, and suggested investment conditions under which the North could transfer some of its mineral rights to them and receive capital investments in return.

The source said, “For now, as far as I know, executive managers of the No. 39 Department have been in contact with Chinese enterprises. Since the Workers’ Party is trying to sell shares in a gold mine, it seems the funding of the Party might be serious.”

“It is not clear whether or not this attempt was done on Kim Jong Il’s instructions, but attracting foreign investment in a gold mine is not a commonplace affair,” the source pointed out, adding that an investor has not yet been put in place.

What is the Daebong Mine for?

The Daebong Mine is a relatively large gold mine on the border of Woonheung and Gapsan in Yangkang Province. Until 2001, a Yangkang provincial foreign currency earning enterprise and the foreign currency earning department of the People’s Safety Agency jointly managed it. However, in May, 2002, it became a No. 39 Department affiliated enterprise.

The No. 39 Department has been raising private funds for the leader and Party operations under the Finance and Accounting Department of the Central Committee since the mid-1970s. According to defectors, it has the highest authority and the largest funds of all North Korea’s foreign currency earning enterprises. Especially, it has the ability to mobilize tremendous financial resources since it manages and controls supplies of gold and silver and rare non-ferrous metals.

A source from Yangkang Province explained, “According to Chongjin University of Mining and Metals and Kim Chaek University of Technology, the purity of the gold from the Daebong Mine is more than 76 percent, while production from Hoichang and Eunsan in South Pyongang Province is 63 percent and 61 percent respectively. More than 150kg of solid gold is produced annually, so this mine is known as the ‘loyalty mine’.”

“People say that the government earns four or five million dollars a year through this mine. Neither Yangkang Provincial Committee nor Hyesan Municipal Committee is involved with the business of the mine.”

The source added, “Since the No. 39 Department deals with the mine, only those discharged soldiers with good family backgrounds are dispatched there by the Central Committee. In October of last year, around 200 discharged soldiers with good family backgrounds came to the mine.”

Almost all the gold produced in the Daebong Mine is stored in Swiss and Austrian banks in gold bars.

A Chinese company had a contract with the DPRK’s Musan Mine which has been canceled for an unknown reason.

Click here to see what I believe is the mine’s location.

Read the full article here:
No. 39 Department Hawking Shares in Key Gold Mine
Daily NK
5/3/010
Lee Sung Jin

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Inter-Korean trade nearly doubles to $200m in March

Saturday, May 1st, 2010

According to Yonhap:

Trade between South and North Korea nearly doubled last month compared with a year ago amid a nascent economic recovery in the South, a government report showed Wednesday.

Inter-Korean trade jumped 88.5 percent from a year ago to US$204.03 million in March, according to the report by the Korea Customs Service. Compared with two years ago, before the South Korean economy was hit by the global financial crisis, trade between the two Koreas rose 29.7 percent in the reported month.

South Korea imports a range of labor-intensive goods such as clothes and watches from the joint Kaesong industrial complex in North Korea, as well as seafood and some agricultural produce. North Korea imports textiles such as cotton and other staple fabrics, along with electronics products including computers and machinery.

South Korea’s outbound shipments to the North came to $84.36 million while its imports from the communist country amounted to $119.67 million. This marked the highest trade deficit for the South in 17 months at $35.31 million, the report said.

The surge came on the back of an economic turnaround in the South. Inter-Korean trade did not seem to be affected by ongoing political tensions on the Korean Peninsula.

During the first quarter of this year, two-way trade soared 64.3 percent from a year earlier to $526.72 million, it said.

Bilateral trade has increased steadily over the past decade from $328.65 million in 1999 to $651.68 million in 2002 and surpassing the $1 billion mark for the first time in 2005.

Inter-Korean trade reached $1.79 billion in 2007 and peaked at $1.82 billion the following year before falling slightly to $1.66 billion last year.

Read the full story here:
Inter-Korean trade nearly doubles to $200 mln in March
Yonhap
4/28/2010

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DPRK art troup performs in Beijing

Saturday, May 1st, 2010

According to Yonhap:

A North Korean remake of the Chinese opera A Dream of Red Mansions will premiere in Beijing next month, a Chinese-language daily reported Thursday.

The Hong Kong-based Takungpao said the staging of the Chinese classic of the same title, also known as “Hong Lou Meng,” by North Korea’s national Phibada (Sea of Blood) Opera Troupe will be staged in the Chinese capital city from next Thursday through Sunday.

A Dream of Red Mansions is a masterpiece of Chinese vernacular literature, written between 1749 and 1759. It is one of China’s Four Great Classical Novels.

The North Korean version of the opera reportedly debuted in the North last year as part of celebrations marking 60 years of diplomatic relations between the two allies.

North Korean leader Kim Jong-il was reported to have been directly involved in updating the 1961 version created by his father and the regime’s founder, Kim Il-Sung. Former Chinese leader Deng Xiaoping and other Chinese leaders watched the original version of the North Korean performance, newspaper reports from that era show.

The North’s Korean Central News Agency (KCNA) reported last October the North Korean leader and Chinese Premier Wen Jiabao watched the Chinese opera remade by North Korean artists at the Pyongyang Grand Theater, during the latter’s visit to North Korea. China’s Ministry of Culture donated costumes for North Korean artists involved in A Dream of Red Mansions.

The Takungpao report said more than 200 North Korean performers will visit Beijing for the staging of the opera, the largest foreign theatrical company to visit China in recent years.

The newspaper said that the leading and supporting actors are well-known stars in North Korea, most of them educated at the Pyongyang Kim Won Gyun Conservatory (Satellite image here), a higher educational institution for music named after a North Korean composer.

Kim Il-hwang, who stars as the protagonist Jia Baoyu, is the grandson of Kim Jong-hwa, who also played the protagonist in the 1961 version, according to Takungpao.

Read the full story here:
N. Korean version of classic Chinese opera to premiere in Beijing
Yonhap
Kim Young-gyo
4/29/2010

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WHO launches health initiative in DPRK

Monday, April 26th, 2010

UPDATE:  According to the Associated Press (Via Washinton Post):

North Korea formally launched a medical videoconference network Tuesday aimed at giving smaller, rural hospitals access to specialists in the capital Pyongyang with the help of the World Health Organization.

WHO has been providing cameras, computers and other equipment to North Korea to help the reclusive, impoverished country connect a main hospital in Pyongyang with medical facilities in 10 provinces. The system is designed to allow doctors to talk to each other to provide additional services to rural patients.

On Tuesday, North Korean health officials and visiting WHO Director-General Margaret Chan held the formal inaugural ceremony for the system at the Kim Man Yu hospital in Pyongyang, according to footage from broadcaster APTN.

“This is an excellent vision because it meets the needs of the government,” Chan said.

Chan, clad in a white gown, later tested the system by talking with provincial doctors via video link.

One unidentified doctor at Jagang province, about 150 miles (240 kilometers) north of Pyongyang, told Chan he is satisfied with the system because it’s too far for his patients to visit specialists in the capital.

She arrived in Pyongyang on Monday, becoming the U.N. agency’s first chief to visit the communist country since 2001.

WHO opened its office in Pyongyang in 2001 and has coordinated the purchase of medical equipment and supplies for North Koreans. The world’s health body says on its Web site that it is currently focusing on strengthening the North’s health infrastructure.

ORIGINAL POST: According to the Associated Press (via Taiwan News):

World Health Organization Director-General Margaret Chan arrived in North Korea on Monday on a rare visit to the isolated country.

The U.N. body has said Chan will spend two days in the reclusive communist country _ the first chief to go since 2001 _ to tour health facilities and meet the country’s health minister.

The WHO has not provided details of Chan’s itinerary, but the Korean Central News Agency said in a dispatch that Chan arrived in Pyongyang on Monday.

The dispatch said the government held a reception for Chan, who arrived the same day as Red Cross and Red Crescent officials. It was not clear if the visits were connected.

The North faces chronic food shortages and has relied on outside assistance to feed much of its population since a famine believed to have killed as many as 2 million people in the 1990s.

Malnutrition, dysentery, and vitamin and iodine deficiency are believed to pose serious risks among children in the country, which also faces a shortfall of hospitals and lacks an efficient state health care system.

Read the full stories here:
WHO chief arrives in North Korea on rare visit
Associate Press (Taiwan Times)
4/26/2010

NKorea launches telemedicine network with WHO help
Associated Press (via Washinton Post)
Kim Hyung-Jin
4/27/2010

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Seoul denounced seizing of ROK assets at Kumgang

Sunday, April 25th, 2010

According to Yonhap:

South Korea denounced North Korea’s decision Friday to seize five South Korean facilities at a mountain resort on its soil and warned that Pyongyang will be held responsible for the deterioration of inter-Korean relations.

“It is an illegal and unreasonable measure that undermines the very foundation of the South-North relations,” a spokesman for South Korea’s Unification Ministry said in a statement after Pyongyang said it will seize the South Korean assets at Mount Kumgang.

“The North has proven itself to be an unfit partner for normal business and transactions,” it said.

North Korea also said other non-state South Korean assets at Mount Kumgang will be frozen, and that all employees from the South at the resort will be expelled. The measures were seen as aimed at pressuring Seoul to resume the suspended mountain tour program that had been a source of foreign currency for Pyongyang.

Seoul said it will take “strong measures” against the North. It did not elaborate.

“We cannot accept the (North’s) measures, as they are in violation of contracts between North Korea and our businesses, agreements between the governments and of international laws. It is an unjust step that undermines the very foundation of South-North relations,” a ministry official told reporters.

The North’s move came at the end of a two-day inspection by North Korean military officials of the mountain resort, where dozens of South Korean businesses and private investors own various facilities that are part of the suspended tourism program.

The five facilities to be seized include a family reunion center, funded and owned by Seoul’s National Red Cross, as well as a fire station and a duty free shop. They also include a cultural center and a hot spring resort, both owned by Seoul’s Korea Tourism Organization.

Pyongyang froze the assets, worth some 124 billion won (US$112 million), on April 13 after an on-site inspection by its officials late last month. The latest inspection ended Friday.

“First, we will confiscate all five assets of the South Korean authorities that have already been frozen in compensation for our loss due to the long suspension of the tour,” an unidentified spokesman for the General Guidance Bureau for the Development of Scenic Spots said in a statement carried by the North’s official Korean Central News Agency.

The once lucrative tourism program for the impoverished North was suspended in July 2008 after a South Korean tourist was shot dead by a North Korean guard near a restricted area. Nearly 2 million South Koreans had visited the mountain resort since the tours began in 1998.

“The confiscated real estate will be put into the possession of the DPRK or handed over to new businessmen according to legal procedures,” the statement said, referring to North Korea by its official name, the Democratic People’s Republic of Korea.

The North said early last month that it will restart the tourism program with a new business partner unless Seoul agreed to resume the tours before the end of April.

“The situation has reached such an extreme phase that it is at the crossroads of a war or peace, much less thinking of the resumption of the tour. It is quite natural that we can no longer show generosity and tolerance to the south side under this situation,” the statement said.

Friday’s measure also included freezing of all assets owned by over 30 South Korean businesses and private investors.

Hyundai Asan, the main South Korean developer of the joint mountain resort, urged the North to withdraw its decision and the governments of the two Koreas to resolve the issue through dialogue.

“The road to Mount Kumgang must not be severed as the tours greatly helped promote cooperation and reconciliation between the South and the North and peace on the Korean Peninsula,” the business group said in a statement.

“We also urge our government to actively seek a solution to the current situation, as the joint economic cooperation project of the South and the North, as well as properties of businesses that invested in Mount Kumgang, now sit on the verge of a breakdown,” the statement said.

Read the full story here:
Seoul denounces N. Korea’s seizure of assets at Mount Kumgang
Yonhap
4/23/2010
Byun Duk-kun

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