North Tacitly Accepts Cut In Fee for Kumgang Tours

North Korea has provisionally accepted the Hyundai Group's request for reduction by half of the monthly payment for the Mount Kumgang tourism business license, the head of Hyundai's North Korea project unit said at a press conference on Monday.

According to Kim Yoon-kyu, president of Hyundai Asan Corp., the company and North Korea agreed to continue the Mount Kumgang tourism business, although Hyundai began this year, without the North's consent, to pay just $6 million, only half of the amount agreed on between both sides in 1998.

"North Korea agreed with us to continue negotiating the license fee cut, without suspension of Mount Kumgang tourism, on last Wednesday, after we went to the North and discussed the matter with Asia-Pacific Peace Committee officials," said Mr. Kim.

"It does not mean that North Korea conclusively agreed on the payment cut," Mr. Kim added. "The North only consented to keeping on with the Mount Kumgang tourism and the negotiation for the license fee reduction, though Hyundai would pay only $6 million a month for a while."

Both sides also agreed on some measures to improve the Mount Kumgang tour experience and to attract more tourists.

Hyundai and North Korea plan to provide South Korean tourists with overland journey programs to Mount Kumgang, beginning this year. They also plan to add some sightseeing spots in the North to the Mount Kumgang tourist routes. Officials from both sides will make a joint survey of the areas next month.

by Kim Nam-joong