“North Korea’s unilateral action regarding South Korea’s assets in the Mt. Geumgang tourist area will boomerang, affecting its efforts to attract investment from third countries,” an official from the Ministry of Unification pointed out today.
Speaking with reporters, the official added, “Nowhere in either the inter-Korean investment guarantee agreement or Hyundai Asan Corporation’s contract with North Korea does it stipulate the right of one side to unilaterally deal with assets. Such a move by the North will serve as a bad precedent.”
Following the non-meeting of June 29th, North Korea has now informed businesses that they will need to make plans to clear the remaining assets by July 13th.
In a notification sent to Hyundai Asan Corporation, North Korea wrote, “All South Korean parties with assets in the Mt. Geumgang area shall draw up plans to clear them and visit the area by July 13th. Those who fail to do so will be regarded as having given up all property rights and will be subject to legal measures accordingly.”
Cheon Hae Sung, the spokesperson for the Ministry of Unification, said in response in today’s daily press briefing, “The government stands by the position that it is unacceptable for the property rights of our contractors to be unilaterally violated by North Korea.”
Pointing to the failed June 29th meeting, Cheon pointed out, “Due to North Korea’s unilateral stance on this issue, the delegation returned without any meaningful discussion. We will devise comprehensive countermeasures to protect the property rights of our contractors.”
“It seems that when the North notified private contractors that they had to pay a visit to the Mt. Geumgang area by the 13th, it left out the role of the authorities. Concerning the North’s intent to fundamentally alter previous agreements and contracts, it is not a viable response to send the private contractors to the North by themselves,” added another government official.
“If North Korea follows up its unilateral actions on assets by hosting tourists from other countries, the government will respond through either diplomatic channels or international organizations, such as the International Court of Arbitration,” the official clarified.
The South Korean government previously sought cooperation from the Chinese in May, 2010, requesting that it not allow Chinese tourists to visit South Korean property.
