Archive for the ‘Tourism’ Category

Pyongyang’s 1st Recreational Centre to Eat, Drink & be Merry

Monday, July 2nd, 2007

Daily NK
Han Young Jin
7/2/2007

(visit the Daily NK to see pictures)

On the banks opposite the Chongryukwan (a restaurant) in Pyongyang, a newly leisure centre “Sol Pong Centre” was opened on June 19th.

A Chinese webpage to motivate North Korea-China trade advertizes Sol Pong Centre as, “The latest modernized restaurants, leisure and recreational centre has opened in Pyongyang.”

According to the webpage, Sol Pong Centre offers a variety of services including restaurants, recreational activities, shopping, lounge area, communal bathing, swimming, gym, barber and hairdressers.

Even the entrance to the 5 storey building including a basement, is a revolving door, a rarity in North Korea. There is a Korean barbeque restaurant and shops on the 1st floor, and other modern services on the 2nd floor including a barber, massage therapist, wedding hall and piano concert hall.

This is the first time since the 80’s where a major service centre has opened in North Korea, The last centre “Changkwangwon” facilitated shops, restaurants and a wedding hall.

The webpage features, “This centre was designed to match modern lifestyle and western fashion, and will completely satisfy your recreational lifestyle. It will provide you will a space to enjoy Pyongyang’s modernized foods and leisure.”

North Korea media has not officially advertised the centre as yet. It is being introduced on Chinese investment websites and many speculate that this centre will be more for foreigners and Pyongyang’s top elite class.

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Hyundai Asan to Expand Mt. Geumgang Tours

Tuesday, June 26th, 2007

Korea Times
Ryu Jin
6/26/2007

Tourists who want to visit the inner part of Mt. Geumgang in North Korea, better known as “Naegeumgang’’ in Korean, will be able to leave for the resort area on any day of the week, starting next month.

Hyundai Asan, the South Korean operator of the inter-Korean tourism project, said Tuesday that the Naegeumgang tour, which has so far been carried out three times a week, will be available everyday from July 1.

North Korea had previously agreed to accept only three groups of tourists every week. Each group, composed of no more than 150 visitors, crossed the border every Monday, Wednesday and Friday for a two-night, three-day stay there.

But the two sides finally decided to increase the tours, as applicants have risen sharply in recent weeks since the new tour program was officially launched on June 1.

“We plan to bring 30 groups of visitors to the resort complex on our Naegeumgang tour next month,’’ a Hyundai Asan official said. “But tickets have already been booked almost fully.’’

Mt. Geumgang, which has long held both aesthetic and spiritual allure for Koreans, can be divided into three parts: Naegeumgang (inner, western part), Oegeumgang (outer, eastern part) and Haegeumgang (seashore part).

Since the first tour to Oegeumgang in 1998, an increasing number of visitors have made the trip to the resort area. Most were South Koreans with fewer than 8,000 visitors coming from 48 other countries.

North Korea allowed the inner part of the mountain, Naegeumgang, to be visited toward the end of this year, which military and political experts evaluate as a “bold step’’ when its strategic importance is taken into account.

Hyundai Asan said early this month that more than 1.5 million tourists have visited Mt. Geumgang in the past decade. The company anticipates the number of tourists that visit the mountain resort this year to exceed 400,000.

The Naegeumgang tour is operated from April to November for 420,000 won ($450) per person including a two-night stay in a hotel, which is just 30,000 won higher than that of the tour program to Oegeumgang and Haegeumgang.

On the first day, visitors check in at the hotel and enjoy a North Korean acrobatics show and dine on unique North Korean cuisine. On the second day, tourists explore the beauty of Naegeumgang, followed by a brief trip to Oegeumgang on the last day.

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North Korea gives glimpse of rural life

Monday, June 11th, 2007

Associated Press
Burt Herman
6/11/2007

North Korea is peeling back its self-imposed veil of isolation, allowing tourists a rare glimpse of the hardscrabble rural life en route to a new hiking trail that opened this month at the South Korean-run Diamond Mountain resort.

The new trail is also aimed at drumming up more business for the tourism venture run by a subsidiary of        South Korea’s Hyundai conglomerate, which saw a plunge in visitors last year after North Korea’s missile and nuclear tests. And drawing more tourists will mean more money for the communist nation’s impoverished economy.

The Diamond Mountain tourism project began in 1998 and has drawn 1.5 million guests as the only part of North Korea that can be easily visited by foreign tourists. The mountain is located just north of the border between the two Koreas near the east coast.

It’s one of two landmark projects — the other is a joint North-South industrial zone in the North Korean border town of Kaesong — that are hailed as models for reunification.

The new tour brings visitors to a part of the mountain previously off-limits to outsiders: inner Diamond Mountain, which features gentle waterfalls and Buddhas carved in stone.

But the highlight of the trip is a two-hour drive each way around the mountain to get to the trailhead through villages nestled in valleys displaying a panorama of North Korean daily life under leader Kim Jong Il.

Crossing through a tunnel to start the journey, a military outpost greets travelers with a slogan proclaiming, “We will fight forever for Kim Jong Il.”

Paved roads give way to dirt, rolling through a countryside where the tour buses are the only vehicles as far as the eye can see. Bicycles are the only form of transportation that North Korean families can afford.

They wade through rice paddies to plant seedlings, while oxen pull plows through the mud for other crops, such as corn and beans.

Terraced fields also stretch across hillsides, an attempt to squeeze every inch of food out of the earth in a country where famine is believed to have killed as many as 2 million people starting in the 1990s.

Workers at collective farms erect red flags as a sign of devotion to Kim and his late father, founding leader Kim Il Sung. Children play in a schoolyard wearing the red kerchiefs of the youth wing of the ruling Korean Workers’ Party.

Fresh construction on homes and buildings is a sign of development, although the structures are made of simple clay bricks.

South Korean visitors wave from the bus, but no North Koreans respond to the first outsiders they are seeing in more than a half-century. A group of children scurry behind a wall and other people squat in the dirt, backs to the road. At nearly every intersection, soldiers armed with pistols clutch small red flags, ready to signal an alarm if anything goes awry.

Kim Jeong-ho, president of the Gangwon Development Research Institute, who was leading a delegation of experts on the tour, said the villages reminded him of South Korean rural life in the 1950s and 1960s.

“The way they farm is sort of primitive, they will always have shortages of food,” said Kim Suk-choong, an agricultural economy researcher at the institute.

Although the scenes appear genuine, there’s still a Potemkin Village feeling that confronts visitors to North Korea. All curtains are drawn at a row of squat apartment blocks next to the road, with every window featuring the same artificial red flowers.

North Korean guides gush with minutiae about the mountain, but they are hesitant to discuss village life. Taking photos from moving vehicles is banned.

“It’s important to create a sense of unity between the two Koreas,” Pak Un Ju, a North Korean guide, said of the new tour. “Everybody is entitled to enjoy this mountain, whether South Korean or North Korean.”

The North Koreans were also upbeat about last month’s tests of restored railways between the Koreas, including a line heading to the resort. Tourists initially were only allowed to travel here by ship, but have arrived at Diamond Mountain via reconnected roads since 2003.

“They took the ships first, then they came by road and next will be trains,” said Um Yong Sil, another North Korean guide. She also displayed knowledge of U.S. geography, asking an American journalist how Diamond Mountain compared to the Grand Canyon.

The new openness is an indication of the apparent ease North Korea has over the project and realization that it will not rattle the country’s regime, said resort manager Yoo Da-jong.

The project has also meant about $1.6 billion in investment in the North by South Korea’s Hyundai Asan.

Some 1,000 North Koreans work at the resort, receiving a $50 monthly salary and another $7.50 in social costs paid directly to the North. North Korea also receives about $300 in fees from each visitor.

But profits have been elusive for Hyundai and last year only 280,000 visitors came, short of an expected 400,000. Part of the decline was caused by an end to tour subsidies from the South Korean government after North Korea’s Oct. 9 nuclear test.

Other attractions to lure tourists include a new concert series, with the premiere event this month featuring Nam Jin, known as South Korea’s Elvis Presley. The resort is expanding its duty-free stores, offering such items as an $18,600 Rolex watch — worth nearly 27 years salary for a North Korean worker.

Resort operators hope tourists will ignore the political stalemate and come to experience a taste of a future, undivided Korea.

“This area is for reunification and for natural beauty,” Yoo said. “If you get rid of the political things from your mind, then you can appreciate all these good things.”

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1.5 Million Tourists Visit Mt. Geumgang

Thursday, June 7th, 2007

Korea Times
Ryu Jin
6/7/2007

More than 1.5 million tourists have so far visited Mt. Geumgang in North Korea since the tour was launched about a decade ago, Hyundai Asan said Thursday.

Since the launch in November 1998, the accumulated number of tourists to Mt. Geumgang reached 500,000 in November 2002, 1 million in June 2005 and then 1.5 million in June this year, according to the South Korean operator of the inter-Korean tourism project.

Company officials hailed the latest achievement, which came just after the start of a new tour program to inner Mt. Geumgang, better known as “Naegeumgang’’ in Korean, early this month.

“We will hold a weekend concert this Saturday at the multi-purpose cultural center in the resort complex of Onjeong-ri,’’ a Hyndai Asan spokesman said. “Famous pop singers and bands, including Nam Jin, and rock band No Brain will be there.’’

As part of efforts to promote the Mt. Geumgang tour program, Hyundai Asan has held various cultural events in recent months including concerts and previews of films.

Mt. Geumgang, which has long held both aesthetic and spiritual allure for Koreans, can be divided into three parts: Naegeumgang (inner, western part), Oegeumgang (outer, eastern part) and Haegeumgang (seashore part).

Since the first tour to Oegeumgang in 1998, an increasing number of visitors have made the trip to the resort area. Most were South Koreans; fewer than 8,000 visitors came from 48 other countries.

But the inter-Korean tourism business has often been affected by the security situation on the Korean Peninsula. For example, it ran into difficulties when North Korea conducted a nuclear test in October last year.

Amid the heightened tension, the number of tourists plummeted to some 240,000 last year, putting a damper on Hyundai Asan’s target of securing more than 400,000 visitors annually.

On June 1, the company started a new tour program, which allows visitors to taste the elegance of the inner part of the 12,000-peak auspicious mountain. Hyundai Asan CEO Yoon Man-joon expressed his ambition during a pilot tour late last month where some 150 dignitaries and media took part.

“We set the target at 400,000 again this year. About 15 to 20 percent of the tourists are expected to visit Naegeumgang this year,’’ Yoon said. “I hope the launch of the Naegeumgang tour will give us an opportunity for a second leap toward successful Mt. Geumgang tour business.’’

Hyundai Asan officials said about 100,000 people have made the trip to the mountain by the end of May. They expect that the figure could reach the target as the high-demand season — from June to October — is approaching.

Each group for the two-night, three-day Naegeumgang tour will be made up of up to 150 visitors and the departure days are every Monday, Wednesday and Friday.

On the first day, the visitors would check in at the hotel and enjoy the North Korean acrobatics show and dine on unique North Korean food for supper. On the second day, they would explore the beauty of Naegeumgang, followed by a brief trip to Oegeumgang on the last day.

Yoon said the company would also try to revamp tour programs to draw more younger visitors as part of its new marketing strategy for the existing tour to the outer side of the mountain, Oegeumgang.

“We will continue to host various cultural events, including concerts and cinema previews, to meet expectations of customers in various age groups,’’ said a company spokesman. “These efforts will also help the company advance to two million visitors.’’

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Hyundai considers longer Geumgang tour

Wednesday, May 30th, 2007

Korea Herald
Kim Yoon-mi
5/30/2007

Hyundai Asan, the South Korean operator of travel to Mount Geumgang in North Korea, is considering expanding its new program that would allow South Koreans to tour the inner side of the mountain, its CEO Yoon Man-joon said yesterday.

Hyundai Asan on Sunday and Monday ran two pilot tours to inner Mount Geumgang, which has been closed by North Korea despite the South Korean company’s eight-year-long request to open it to South Korean visitors.

The new tour course will be open to the general public from June 1.

“For now, the new course is open three times a week, on Tuesday, Thursday and Saturday. But depending on the tourists’ response, we could increase the visiting days. And this has already been agreed to with North Korean officials,” Yoon said during a press meeting at Pyohun Temple at inner Mount Geumgang on Monday.

Hyundai Asan’s tourism business met difficulties when North Korea conducted a nuclear test in October last year. With tension heightened on the Korean Peninsula, the number of tourists visiting Mount Geumgang plummeted, ruining Hyundai Asan’s target of securing 400,000 visitors a year. The number reached only 240,000 last year.

“We set the target at 400,000 again this year. About 15 to 20 percent of the tourists are expected to visit inner Geumgang this year. I hope by launching the inner Mount Geumgang tour, it give us a second leap toward successful Mount Geumgang tour business,” Yoon said.

The new tour includes a bus ride through North Korean villages for an hour and a half.

During the bus ride, North Korea people’s livelihoods, commercial buildings and schools will be visible to South Korean tourists.

“It must have been a big decision for North Korea to open up their ‘inner bedroom’ because you would do so to only those who are really close to you,” he said.

Regarding new marketing strategy for the existing tour to the outer side of Mount Geumgang, Yoon said the company will revamp tour programs to attract younger visitors.

Also, Hyundai Asan will add two tour sites called Munpil Peak and Beobgi Rock to the outer Mount Geumgang tour course as early as in June, he said.

The inner Mount Geumgang tour, once opened in June, will be operated from April to November with a price tag of 420,000 won ($450) for a three-day tour per person. The outer Geumgang tour currently costs 390,000 won per person.

“Just as inner and outer parts of Mount Geumgang meet to become one, I hope one day the two Koreas can become one,” said Hyundai Group chairwoman Hyun Jeong-eun, who also participated in the pilot tour on Monday.

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Venturing into North Korea

Tuesday, May 22nd, 2007

CNN (Hat tip to D”S”B)
Adam Levine
5/22/2007

Hiking on North Korea’s Mount Kumgang gives you the uneasy feeling that despite the majesty of the natural scenery, even nature cannot escape politics in one of the most closed-off countries in the world.

The four-hour walk to Kuryong Falls is the centerpiece of the Mount Kumgang resort in southeastern North Korea. The trail winds along a river with glistening pools of water and picturesque scenery all around.

But you never escape the country’s dictatorship — there is the propaganda carved into the mountainside and rocks by the North Koreans, and the Chinese before them. There are also the North Korean employees working as vendors and rescue workers on the trail. They are always in pairs, and always seem to be watching you.

Kumgang is a popular tourist destination for South Koreans, for whom the mountain holds spiritual allure, and it is one of the few places in North Korea that Americans can travel relatively easily.

Hyundai Asan, an offshoot of the Korean car company, built the resort. It paid the North Korean government US$1 billion for 50 years of exclusive rights to the region and other business interests in North Korea. It spent an additional US$400 million to build the five-hotel resort, which opened in 1998.

More than 1.5 million visitors have made the trip to Kumgang. Most visitors are South Koreans; less than 8,000 visitors are from 48 other countries. Hyundai Asan spokesman Dan Byun says a majority of the 8,000 are South Korean ex-patriots.

Despite the western style hotel accommodations, American money changing hands and duty free shop selling Johnny Walker and Marlboro cigarettes, you don’t forget that you are in North Korea.

Just getting there involves busing through the demilitarized zone, where we are constantly told “no pictures, no pictures” by our guide and informed that aside from the road we are on, the entire area is filled with land mines.

After going through North Korean immigration we are herded back on a bus and reminded again that we cannot take pictures until we get inside the resort.

The 4.5-mile trip moves through southern North Korea, which the guide says is all a military base. Soldiers appear ominously standing at attention along the road. Each carries a red flag, which, we are told, will be raised if any soldier sees one of us taking a picture. Tanks and what appear to be anti-aircraft weapons are hidden in bunkers in the hills overlooking the roads.

The actual resort area looks no different than any typical tourist destination with a welcome center, hotels, bus parking and retail stores. North Korean folk songs blare from overhead speakers in the parking lot. But surrounding it all is a fence to separate tourists from the North Korean village of On Jung Li.

A two-night, three-day tour can cost as much as US$490. There are five hotels to choose from including a beach-side hotel and floating hotel and one that used to be the vacation home of Kim Il Sung’s wife.

There are 11 restaurants, including a branch of a North Korean noodle restaurant that is an exact replica of its counterpart in Pyongyang. An 18-hole golf course is opening in the fall and there is a Korean acrobatics show that performs each night at the theater.

The government has gone to extremes to accommodate the resort, even tearing down a village and moving it and its inhabitants to make way for the welcome center and shop.

The company defends its $1 billion payment to the North Korean government as economic revitalization. Hyundai Asan built a railway and border station to allow trains to travel from Seoul, South Korea, into North Korea. After refusing to let the trains through for a long time, the North Korean government finally allowed the first train to cross the border last week.

Hyundai is also building a reunification center to allow families from both sides of the border to hold reunions when allowed.

Some North Koreans work at the resort as waiters, vendors, rescue teams and maintenance. Most wear a pin of their president on their lapel.

Most refused to be photographed, cryptically saying “no pictures while I am working.” All but a few will refuse to talk to you. The ones that did talk to us offer some glimpse into their thinking.

One rescue worker told us that the only reason President Bush has not invaded North Korea is because Bush is afraid of Kim Jung Il. A vendor told us that she likes Americans, but hates the American government.

The resort is surrounded by a fence, through which you can see villagers planting in the fields and walking down the roads. They are forbidden to come to the resort or talk to the tourists. Not that they appear to be trying.

Ashley Moore, from Oklahoma, remembers North Koreans ducking behind trees and plants.

“We weren’t allowed to speak to any of them,” Moore said.

Moore, and her boyfriend Zac Gambill took a trip to Mount Kumgang when they lived in South Korea last year.

She and Gambill went from being a bit frightened to be in North Korea to surprise about the unabashed consumerism at the resort.

“Seeing the commercialism at the resort was a real shock,” Moore said. But she never felt totally at ease.

“We got a sense of the North Korean government’s determination to convey a favorable image to the outside world and a small sense of what it feels like to be constantly under surveillance,” Moore observed.

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Status of US travelers in North Korea

Wednesday, May 9th, 2007

Office of Foreign Asset Control
(hat tip to Mr. Lukacs, with whom I visited Turkmenistan with Koryo Tours)

[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR500.563]

[Page 543]
 
                  TITLE 31–MONEY AND FINANCE: TREASURY
 
 CHAPTER V–OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 500–FOREIGN ASSETS CONTROL REGULATIONS–Table of Contents
 
 Subpart E–Licenses, Authorizations and Statements of Licensing Policy
 
Sec. 500.563  Transactions incident to travel to and within North Korea.

    (a) All transactions of persons subject to U.S. jurisdiction, including travel service providers, ordinarily incident to travel to, from, and within North Korea and to maintenance within North Korea are authorized. This authorization extends to transactions with North Korean carriers and those involving group tours, payment of living expenses, the acquisition of goods in North Korea for personal use, and normal banking transactions involving currency drafts, charge, debit or credit cards, traveler’s checks, or other financial instruments negotiated incident to personal travel.
    (b) The purchase of merchandise in North Korea by persons subject to U.S. jurisdiction, and importation as accompanied baggage, is limited to goods with a foreign market value not to exceed $100 per person for personal use only. Such merchandise may not be resold. This authorization may be used only once in every six consecutive months. As provided in Sec. 500.206 of this part, information and informational materials are exempt from this restriction.
    (c) This section does not authorize any debit to a blocked account.

[60 FR 8935, Feb. 16, 1995]

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Drugs Stashed Away at a Foreigners Casino in Yangkang Hotel

Tuesday, May 1st, 2007

Daily NK
Kwon Jeong Hyun
5/1/2007

Drug dealings have been occurring frequently amongst North Korea’s wealthy class which has led to an increase in people “taking medicine” an inside source recently informed.

Further, an underground casino for foreigners at Yangkag Hotel, Pyongyang, is known to have been openly circulating drugs. Yangkag Hotel is an elite hotel and was built in 1995 in co-partnership with France. Currently, the hotel operates a casino used by foreigners.

The source informed on the 30th, “Drug dealers directly approach the wealthy class who live around the borders of North Korea-China” and revealed, “People fall for the dealer’s trap and hence the number of addicted drug sellers and wealthy class is increasing.”

A few North Korean tradesmen even testified that a large number of the rich living in the border regions of North Korea, have in fact dealt with drugs in one form or another. Apparantly, about 3 out of 10 rich persons in North Korea have had some experiences with drugs and most of the long-distance drivers in North Korea take drugs.

One North Korean tradesman ‘H’ revealed, “Drug dealers con North Koreans with money by saying that the ‘medicine’ clears the head and acts as an aphrodisiac by giving you strength. Then they let the buyers taste-test the drug for free.” H said, “After a few times, the majority of these people become addicted and the dealer sets up a relationship to sell the drug for a long time.”

‘J’ who lives around the border regions expressed the seriousness of the drug issue by telling his own story. Through North Korea-China trade, J’s brother-in-law had accumulated a lot of wealth. One morning without any warning, he suddenly died in which J had thought was a hart attack. However, he later found out from his sister that drugs had been the cause.

For the past 2 years, J’s brother-in-law had been earning money and also spending it on drugs. He tried to quit on numerous occasions but was unable to escape from the persistent temptation by the drug dealer. As time passed, the symptoms of an addict surfaced which ultimately led to a drug overdose and death.

J said, “Never in my dreams could I have imagined that a good person like my brother-in-law would become a drug addict. Though authorities are enforcing regulations and punishment on the misuse of drugs, the problem is that there are no specific penalties or laws. If this keeps going, things could get worse.”

The source said, “North Korean authorities have made numerous decrees on various occasions stating that they will toughen punishment. But there are no specific rules or law and so there is no control over the offenders.” The source added, “The truth is, it will be difficult to penalize everyone according to the decrees set as many people throughout the regions of North Korea are now using drugs including the rich living in the cities.”

On the other hand, the district of Hamheung is receiving much focus as it is known to be the base for drug manufacture. Drugs sold on the black-market in Pyongyang, Chongjin and Shinuiju are considered of high quality and receive utmost trust if the drugs have been made in Hamheung.

Hamheung’s history dates back to when the chemical industry was first booming in North Korea. As a result, North Korea authorities began to produce medicinal drugs to attract more foreign currency. When the economic situation worsened, workers and the elite were known to have stashed drugs secretly in order to make money.

In addition to this, as lifestyles became more difficult, there were rumors suggesting that chemical analysts brought some raw materials of Philopon from China to secretly make drugs within the labs.

“It’s not only Hamheung. Drugs are easily available even in Pyongyang” the source said and, “Drugs are openly traded at the underground foreigners casino in Yangkag Hotel (for Hong Kong, Macau and Chinese tourists).”

The source continued, “The elite in Pyongyang often take drugs and this hotel is known for its stash of drugs” and added, “The Safety Agency and the Protection Agency must take action. Otherwise, the situation is only going to get worse.”

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Cable Cars to Run on Mt. Geumgang

Monday, April 30th, 2007

Korea Times
Kim Yon-se
4/30/2007

Hyundai Group is gearing up to activate its inter-Korean businesses as negative factors, such as North Korea’s nuclear test last October, have started to settle down.

As early as this year, Hyundai Asan, the group’s tourism unit, plans to operate cable cars on Mount Kumgang to attract more South Korean tourists. The company has been in talks with North Korea to run cable cars on part of the mountain.

“It usually takes about one year or more to complete the construction of a cable car system. We launched the construction last year,” a company official said, suggesting that tourists could enjoy the service in 2007 or early 2008.

He said cable cars will run between the mountain’s top and the Sejonbong ridge, one of Mount Kumgang’s peaks. As the peak is located near the East Sea, tourists will enjoy scenic views of the mountain and sea simultaneously.

Hyundai Asan has set the goal of attracting 400,000 tourists, including South Koreans and foreigners, to Mount Kumgang this year, compared with 234,446 last year.

Its rosy outlook comes largely from the six-party agreement to dismantle North Korea’s nuclear programs in February. Hyundai Asan officials say the event will help normalize inter-Korean businesses.

“The landmark accord will enable our inter-Korean projects, including Mount Kumgang tours and the Kaesong Industrial Complex, to get revitalized,” the official said.

Along with the scheduled opening of tours to inner Mount Kumgang from May 27, Hyundai Asan has decided to hire more than 10 fresh employees.

As the number of tourists fell to fewer than 250,000 in 2006 from 301,822 in 2005 and 272,820 in 2004, the company had to conduct layoffs and cut monthly payments to some employees amid deteriorating profitability last year.

Now the company plans to restore the salary level and pay delayed bonuses in a bid to encourage workers.

The tour project accounts for about 70 percent of Hyundai Asan’s total sales. It has set a sales target of 300 billion won for 2007.

Hyundai is also poised to push ahead with a plan to begin tours to Kaesong, a North Korean historical city near the border that is home to the South Korean-invested industrial complex. It plans to hold working-level meetings with the North in order to hasten the start of the tours.

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North Korean resort gives solace to South

Monday, April 23rd, 2007

Star Bulletin
Jim Borg
4/23/2007

The Mount Kumgang project has become a place of spiritual if not political reconnection

Amid ongoing international tensions, North Korea has embraced Western-style tourism at its most famous natural attraction, Mount Kumgang.

Thousands of Korean and foreign tourists flock each month to a modern resort under development by South Korea’s Hyundai Asan Corp., which paid $1 billion for exclusive rights to the business.

After $400 million in additional expenditures since 1998, Hyundai Asan has created not only a tourism hub, but the epicenter for reunification efforts on the peninsula.

“Through the Kumgang tourism business, the reconciliation process has begun between the North and the South,” says Young-Hyun Kim, the company’s on-site general managing director.

Star-Bulletin reporter Jim Borg visited the stunning locale last week as part of a journalism exchange sponsored by the East-West Center and the Korea Press Foundation.

MOUNT KUMGANG, North Korea »

Mist rose from the high mountain pool under the thundering waters of Kuryong Falls, adding to the chilly dampness of the day.

Four hours after an unsmiling North Korean soldier scrutinized our passports and waved us on, we stood at the top of a trail traveled each month by thousands of tourists from both sides of the border, all in search of a spiritual reconnection with their ancestral land.

On a divided peninsula technically still at war, Mount Kumgang has become part of a bold experiment in rapprochement. As their political leaders stagger toward the stated goal of reunification, North and South Korea have carved a modern resort out of this imposing landscape along the Sea of Japan.

Despite international tensions over North Korea’s nuclear program and missile launches last July, South Korea’s Hyundai Asan Corp. is pressing ahead with plans to develop this 922-square-mile expanse a short drive north of the Demilitarized Zone.

Already in place are three multistory hotels, a beach lodge for families, 34 single-family cabins, camping facilities, four North Korean restaurants, six South Korean restaurants, duty-free shops, convenience stores, a hot-spring spa, shows featuring acrobats and folk music, and stone-paved trails punctuated by snack tables. A swimming beach adjoins the floating Hotel Haekumgang in nearby Kosung Bay.

A railway links the two countries here. North Korea, for obscure reasons, has yet to green-light the trains, and border stations remain eerily empty, but Hyundai Asan’s Ha-Jung “Dan” Byun expresses confidence that that hurdle will be cleared soon.

“Everything is connected,” he says. “Everything is ready. What we are waiting for is the final confirmation between the two governments.”

Byun, general manager for planning and foreign investor relations, greeted U.S. reporters visiting Mount Kumgang last week as part of a program sponsored by the East-West Center. This is the first time that the Korea-United States Journalism Exchange, now in its third year, has sent reporters into North Korea.

One of the lessons that emerged is that business interests seem to be succeeding where diplomacy has often failed.

Hyundai Asan, an enterprise separate from the automotive and shipbuilding giants, paid $1 billion to North Korea for exclusive business rights at Mount Kumgang and, farther west, the Kaesong Industrial Complex, where South Korean technology meets cheap North Korean labor.

Scandal clouded the early years of the association, when corruption and embezzlement charges presumably prompted the company’s chairman, Chung Mong-hun, to commit suicide in 2003 by leaping from his 12th-floor office in Seoul. Asked whether Hyundai Asan’s largesse could be viewed as helping to finance North Korea’s weapons programs, Byun said the firm believes the lump sum payments in 1999-2000 were used for economic revitalization.

But even elsewhere along the Demilitarized Zone, a remnant of the 1950-53 Korean War, conflict has bred commerce, drawing tourists to souvenir shops and a carnival park called Peace Land. Tourists and South Korean schoolchildren are taken by tram into a tunnel dug under the DMZ by the North Koreans and discovered in 1978.

Peace Land is a short drive from Seoul, up a highway where billboard-type advertising masks barricades rigged with explosives to stop invading tanks.

South Koreans seem at ease with this dichotomy, taking North Korean anti-U.S. rhetoric and military posturing in stride in an atmosphere of care-free prosperity.

THE BEDROCK for North Korea’s burgeoning tourism is a collection of crags that seem to reach skyward like fingers pressed in prayer. Mile-high Birobong Peak caps this Yosemite-esque experience.

The brochure for Mount Kumgang shows colorful photos in every season, but even in a chilly drizzle the three-hour trek was breathtaking. A river spilled down the narrow canyon to collect in crystal green pools.

“The water is pure and clear,” observed Yong-Sik Im, 41, who came to the mountain with 31 other residents of Namgu village. He recalled singing a song about Mount Kumgang as a schoolboy and always longed to visit.

South Korean hikers here are essentially pilgrims.

At Kumgang they see harmonious manifestations of heaven, earth and water, symbolized on the national flag. The mountain’s yin-yang mix of strength and fluidity has even inspired some movements in the Korean martial art of tae kwon do.

Byun said most South Koreans hope to visit this spot at least once before they die. More than 1.4 million have come since 1998, with a highway route open since 2003.

The site has also been used for meetings arranged by the Red Cross between family members separated by the border. Special accommodations for those families are due to open next year.

THE NORTH KOREAN security guards and snack vendors we met along the trail were polite, if cool, and talked little about their lifestyles except to say they are satisfied.

The exception was one particularly articulate female worker, obviously briefed on the six-nation nuclear talks and other current events, who criticized the United States for aggression. At least one North Korean said the United States deserved the Sept. 11, 2001, attacks because of chronic warmongering.

Most of the North Korean workers, including the waitresses at the Okryukwan restaurant, where lunch was served after the hike, refused to be photographed. But over this caution hovered a palpable aura of promise.

Maybe it arises from the $400 million that Hyundai Asan has already spent on development above the $1 billion for rights.

About 1,500 people make a living here: 95 with Hyundai Asan, another 162 with other South Korean companies, about 780 North Koreans and 450 ethnic Koreans recruited by the North Koreans in China.

But don’t try to spend your South Korean currency in the North Korean shops.

Only U.S. dollars are accepted.

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