Rapid
October 12th, 2004, 01:14 AM
S. Koreans Allowed to Own Real Estate on Mt. Kumgang
By Park Song-wu
Staff Reporter
South Koreans will be entitled to own properties at the North's Mt. Kumgang as Pyongyang has approved new real estate regulations for the resort area.
The Seoul government on Monday welcomed North Korea's approval of insurance policies for firms operating at an industrial complex in Kaesong and new real estate regulations for the Mt. Kumgang tourism resort on the North's east coast.
The two decisions were endorsed by the North's rubber-stamp legislature late last month, North Korea's state-run news agency said in a Monday dispatch from Pyongyang.
Officials in Seoul expect a boost in inter-Korean business projects.
``We welcome the North's decisions for cross-border business projects,'' a high-ranking government official said. ``We also hope the North will make a swift decision on the establishment of a communication network in Kaesong.''
He said the North had negotiated with its Southern counterparts and the decisions reflected the opinions of South Korean investors, including Hyundai Asan.
``It is a clear sign that the North wants to maintain inter-Korean dialogues by continuing the business projects, even though the government-level talks between the two Koreas have shown no progress,'' he said.
The insurance regulations require South Korean and foreign businesspeople in the North's border town of Kaesong to buy insurance from a company selected by the Pyongyang government, the Korean Central News Agency (KCNA) said.
Those who fail to take out an insurance policy with the firm, which is expected to be North Korean, will be subject to a fine of up to $10,000.
``We couldn't carry out consultations with the North on that part in detail,'' the official in Seoul said. ``However, we plan to have more talks and try to make it possible for our businesspeople to go with our insurance practices.''
The policy presented by the North covers both natural and man-made disasters, including fires, explosions and traffic accidents, the KCNA said. But it did not clarify the premium for the insurance policy.
The real estate regulations for Mt. Kumgang allow foreigners and foreign firms, including those from South Korea, to acquire the rights to use land or buildings in the mountainous resort area.
Hyundai Asan is expected to get the biggest boost from the regulations by inviting foreign investors to join the ongoing project to develop Mt. Kumgang.
The regulations state that those who legally acquire rights to use land are protected from revocation of the rights within the lease period. In addition, leaseholders can call on the North's authorities to extend the period of a lease. They can also transfer leases on land or buildings to a third party.
The communist state bans activities contrary to the public interest, such as fraud and real estate speculation, the KCNA said.
The mountain resort is the only tourist spot in the North that South Koreans can visit. A cross-border tour, launched by the Hyundai Group in late 1998, has so far drawn more than 784,000 visitors, according to Hyundai Asan.
The Kaesong industrial complex, being built by Hyundai Asan and the state-run Korea Land Corp., is one of the most prominent results of inter-Korean reconciliation that began with the historic leaders' summit in 2000.
The complex, only a few kilometers to the north of the heavily-fortified demilitarized zone, is intended to be used by hundreds of South Korean garment makers and other labor-intensive companies that will take advantage of cheap but skilled North Korean labor.
The industrial park will be partially opened later this year, with 15 companies scheduled to move into a pilot complex and begin production by the end of the year.
By Park Song-wu
Staff Reporter
South Koreans will be entitled to own properties at the North's Mt. Kumgang as Pyongyang has approved new real estate regulations for the resort area.
The Seoul government on Monday welcomed North Korea's approval of insurance policies for firms operating at an industrial complex in Kaesong and new real estate regulations for the Mt. Kumgang tourism resort on the North's east coast.
The two decisions were endorsed by the North's rubber-stamp legislature late last month, North Korea's state-run news agency said in a Monday dispatch from Pyongyang.
Officials in Seoul expect a boost in inter-Korean business projects.
``We welcome the North's decisions for cross-border business projects,'' a high-ranking government official said. ``We also hope the North will make a swift decision on the establishment of a communication network in Kaesong.''
He said the North had negotiated with its Southern counterparts and the decisions reflected the opinions of South Korean investors, including Hyundai Asan.
``It is a clear sign that the North wants to maintain inter-Korean dialogues by continuing the business projects, even though the government-level talks between the two Koreas have shown no progress,'' he said.
The insurance regulations require South Korean and foreign businesspeople in the North's border town of Kaesong to buy insurance from a company selected by the Pyongyang government, the Korean Central News Agency (KCNA) said.
Those who fail to take out an insurance policy with the firm, which is expected to be North Korean, will be subject to a fine of up to $10,000.
``We couldn't carry out consultations with the North on that part in detail,'' the official in Seoul said. ``However, we plan to have more talks and try to make it possible for our businesspeople to go with our insurance practices.''
The policy presented by the North covers both natural and man-made disasters, including fires, explosions and traffic accidents, the KCNA said. But it did not clarify the premium for the insurance policy.
The real estate regulations for Mt. Kumgang allow foreigners and foreign firms, including those from South Korea, to acquire the rights to use land or buildings in the mountainous resort area.
Hyundai Asan is expected to get the biggest boost from the regulations by inviting foreign investors to join the ongoing project to develop Mt. Kumgang.
The regulations state that those who legally acquire rights to use land are protected from revocation of the rights within the lease period. In addition, leaseholders can call on the North's authorities to extend the period of a lease. They can also transfer leases on land or buildings to a third party.
The communist state bans activities contrary to the public interest, such as fraud and real estate speculation, the KCNA said.
The mountain resort is the only tourist spot in the North that South Koreans can visit. A cross-border tour, launched by the Hyundai Group in late 1998, has so far drawn more than 784,000 visitors, according to Hyundai Asan.
The Kaesong industrial complex, being built by Hyundai Asan and the state-run Korea Land Corp., is one of the most prominent results of inter-Korean reconciliation that began with the historic leaders' summit in 2000.
The complex, only a few kilometers to the north of the heavily-fortified demilitarized zone, is intended to be used by hundreds of South Korean garment makers and other labor-intensive companies that will take advantage of cheap but skilled North Korean labor.
The industrial park will be partially opened later this year, with 15 companies scheduled to move into a pilot complex and begin production by the end of the year.