Park Ji-won is a writer for The Korea Times who has been covering a wide range of topics from Korea’s culture to its politics. An avid journalism enthusiast to the core, Ji-won brings a thoughtful and unique perspective to every topic she covers. On weekends, you'll often find her contemplating life’s purpose on a yoga mat — with a cup of quality tea in hand. A native Korean speaker by birth and fluent in English through her work, she went to college in Japan and is learning Chinese and French — hoping to add Polish, Russian and Thai to the mix.
Geumgang firms suffer W200 bil. in accumulated losses
A facility near a hotel at Mount Geumgang resort on June 22 / Korea Times file
By Park Ji-won
By Park Ji-won
South Korean firms and provincial governments suffered over 2 trillion won ($1.78 billion) in accumulated losses over the last 10 years due to the suspension of tour programs to Mount Geumgang in North Korea, a ruling party lawmaker claimed Tuesday.
According to Rep. Kim Hae-young of the ruling Democratic Party of Korea (DPK), the revenue loss in related companies and local governments during the suspension of tour programs to the North's scenic mountain from July 11 in 2008 to the end of 2017 reached over 2 trillion won. The companies and governments include the Korea Tourism Organization (KTO), program operator Hyundai Asan and the Goseong County government in Gangwon Province.
Kim said the damage to the KTO alone was 200 billion won. It borrowed 90 billion won from the Inter-Korean Cooperation Fund and invested 35.5 billion won in hot springs facilities owned by Hyundai's affiliate, while investing 30 billion won in a culture center and 24.5 billion won in Onjeonggak service area in North Korea.
Since South Korean tourist Park Wang-ja was shot dead by a North Korean soldier at the Mount Geumgang resort during a tour on July 11, 2008, the travel program has been halted indefinitely. Amid the reconciliatory mood surrounding the Korean Peninsula, hopes to resume the program are rising.
The number of tourists was about 348,000 in 2007, posting 19.7 billion won in Hyundai's operating profit, the data showed.
Hyundai Asan, meanwhile, assumes the suspension resulted in revenue loss of 1.5 trillion won in total. The firm's revenue dropped to 91.1 billion won in 2016 from 255.5 billion won in 2007 and it has never had a revenue surplus since 2008.
Goseong County estimated its monthly losses averaged 3.2 billion won. The number of annual visitors was 6.9 million between 2004 and 2007, but dropped to 4.78 million between 2008 and 2014.