Government Postpones Decision On Bid for Mt. Kumgang Casino

The Ministry of Unification postponed Monday a decision on whether to give Hyundai Asan permission to operate a casino and a duty-free shop as part of its Mt. Kumgang tour operation in North Korea.

Hyundai Asan applied for government approval for the casino last November in an effort to stem mounting losses from the project. It also has been in talks with North Korea on cuts in the business license fee.

"We have judged that it is untimely to decide whether or not we will sanction the casino and duty-free shop, because Hyundai is still negotiating the payment cut with the North," an official at the ministry said.

Observers said Seoul delayed its decision to pressure North Korea to slash the license fee and to avoid rousing negative opinion among South Koreans, who generally oppose casinos.

"We will examine measures to normalize the Mt. Kumgang business, observing talks on the payment," the official added.

Kim Yoon-kyu, president of Hyundai Asan, plans to visit North Korea Tuesday to discuss cuts in the license fee.