Hyundai moves to start again in North

Hyundai Asan Corp., the South Korean company at the forefront of commercial development in North Korea, said yesterday it had agreed with Pyeongyang to start work again on several projects.
The renewed efforts will include a golf course in the Gaeseong tourist district, just north of the Demilitarized Zone, and completion of a small segment of the industrial park in the city for “five or six” South Korean companies to begin operations.
The North’s Asia-Pacific Peace Committee is Hyundai’s counterpart in the projects. The decision to move forward follows a break in development in the aftemath of the suicide of Hyundai Asan’s chairman, Chung Mong-hun, early last month.
Returning from a two-day visit to the North over the weekend, Hyundai Asan’s chief executive, Kim Yoon-kyu, said both sides had agreed to begin development of a 33,000-square-meter (8-acre) area in Gaeseong next month. It’s expected to be operational in six months.
Mr. Kim added Hyundai Asan would develop a 36-hole golf course in Gaeseong and operate tours for about 500 South Koreans daily to the area.
To help promote tours to Mount Geumgang, Hyundai Asan would operate an exclusive North Korean guesthouse at the resort.
Two other accommodation sites would be used for tourists from the South, who are expected to increase now that there is a highway route to border.
Mr. Kim said there were also ongoing talks to bring performance groups and historic treasures from the North for display in the South.
To fund the new projects, Mr. Kim said Hyundai Asan would sell 380,000 shares, or 4.4 percent, to public to raise 1.9 billion won ($1.6 million).
He expressed gratitude for the outpouring of sympathy following Mr. Chung’s death, and said the company wants to make a “fresh start.”

by Jeong Yong-soo