SEOUL, (Yonhap) - North Korea said Saturday its recent decision to void Hyundai Group's exclusive right to theoperation of a tour program at Mount Kumgang complies with domestic and international laws.

In a report carried by Pyongyang's official Korean Central News Agency (KCNA), the communist nation's state organization in charge of the issue put the blame on the South Korean government for the stalled joint tour business.

Last week, the North announced that it has terminated Hyundai's monopoly on the tour program for the scenic mountain along its east coast, as the South continues to block the resumption of the joint venture, which had served as a cash cow for the impoverished country. It alluded to a plan to search for a foreign business partner, particularly from China.

The measure by North Korea was an "exercise of its legitimate sovereignty," the General Guidance Bureau for the Development of Scenic Spots said.

It stressed that the decision complies with the North's related law, international law and practices and does not violate any inter-Korean agreement.

The bureau said its contract with Hyundai stipulates that a party can call for a corrective measure if it becomes unable to achieve the purpose of the tour business because the other party does not carry out duties or responsibilities.

The claim was an answer to Seoul's stance that Pyongyang unilaterally broke its contract with Hyundai in breach of international law.

The bureau said the South Korean government is to blame for the situation.

"The South Korean authorities' unilateral suspension of the tour and use of this matter for inter-Korean confrontation are evidently an illegal action as they are in violation of the agreements between the businessmen for tourism and between
inter-Korean authorities," it said.

Hyundai launched the Mount Kumgang tour program in 1998 but it has been suspended since the summer of 2008, when a female South Korean tourist was shot dead there by a North Korean coast guard.

Pyongyang has been seeking to restart the business, but Seoul has demanded a formal apology for the killing of its citizen, along with measures to prevent the recurrence of such an incident and a guarantee of safety for tourists.