Resort facilities

Government should seek compensation from North Korea for Mount Kumgang facilities: report

This undated file photo provided by South Korean resort operator Ananti shows its golf resort near Mount Kumgang in North Korea.

SEOUL, April 27 (Korea Bizwire)The government has been asked to seek compensation from North Korea for the unilateral demolition South Korean facilities at the resort town of Mount Kumgang, a public research institute said.

The Institute for National Security Strategy said in a report on Tuesday that there was almost no chance for Pyongyang to apologize or compensate for the demolition, stressing that “the South should keep the position of identifying the responsibility of the North and to ask for compensation”.

He said that since South Korean assets remain in various areas, including the now suspended Kaesong Industrial Complex, the government should prevent the demolition of Mount Kumgang facilities from becoming a bad precedent and leading to the violation of other property rights for South Korean assets. in North Korea.

The report suggests that the Mount Kumgang tourism project would have bleak prospects if Pyongyang carried it out independently without Seoul’s cooperation.

Besides the border closure resulting from the COVID-19 pandemic, the report notes that the Chinese do not have much interest in Mount Kumgang.

North Korea may not be able to attract foreign investment due to economic sanctions.

However, even if foreign investment is available, the unilateral demolition of South Korean assets at Mount Kumgang would have dealt a severe blow to its international credibility, one of the main problems affecting the attraction of foreign capital.

Previously, there was a sign that North Korea had demolished South Korean-owned assets in Mount Kumgang, including the Haegeumgang Hotel and the Ananti Golf Resort.

M. H. Lee (mhlee@koreabizwire.com)