Seoul looks on as N.K. threatens to confiscate assets

The South Korean government chose not to speak about what it plans to do should the North confiscate South Korean real estate within the Mount Geumgang resort as it warned last week.

Growing impatient with Seoul`s refusal to reopen cross-border tours, North Korea informed the South of its plan to look into all of the real estate owned by South Koreans inside the scenic mountain resort along its east coast.

Dozens of South Korean companies possess 360 billion won ($31 million) worth of land and buildings in the North`s tourist zone, including Hyundai Asan`s two hotels, Emerson Pacific Group`s golf course and other facilities, according to government data.

The state-run Korea Tourism Organization owns a hot spa facility and a performing arts hall within the mountain resort which it bought from Hyundai Asan with 90 billion won in loans from a government fund.



The Seoul government also poured more than 60 billion won into the construction of a family reunion center there, but said it will not attend this week`s meeting because the North`s threat technically rules it out as a partner subject to confiscation.

"There must be government-level talks on the North`s further measures after the real estate survey," Unification Ministry spokesman Chun Hae-sung said in a press briefing.

"But we have no plans to propose talks with the North."

The North said South Koreans who possess real estate must show up at the Mount Geumgang resort by March 25 for the survey and threatened to seize all assets of those who do not meet the deadline.

South Korean operators of the now-suspended tours remained undecided yesterday on whether they would visit the North later this week for a survey of their properties.

South Korea plans to allow the operators, including Hyundai Asan Corp. and Emerson Pacific Group, to send officials to the meeting, Chun said, but they have yet to seek a permit for a cross-border visit.

"It is our knowledge that the companies are still discussing the issue," he said.

The South has maintained that the tours will not resume until the North provides a better explanation on the shooting death of a South Korean tourist in 2008 and guarantees full-scale safety measures for future tourists.

The North claims to have met the conditions already as its leader Kim Jong-il promised such incidents would never happen again.

(sophie@heraldm.com)







By Kim So-hyun