By Kim Young-jin
Seoul could consider taking Pyongyang to an international court in the worst-case scenario if the sides fail to sort out a compromise over a jointly-run mountain resort in North Korea, an official said.
The North last week threatened to dispose of assets at Mt. Geumgang owned by South Korean companies, including Hyundai Asan, the firm that developed the scenic resort there. It demanded South Korean business representatives visit the North by June 30 to discuss their property.
Lee Jong-joo, spokeswoman for the Ministry of Unification, said Seoul would “first try to discuss the situation” in the North, but that no details had been decided on.
If the North follows through on its threat, she said Hyundai Asan would likely first hold talks with its counterparts there to address the situation. If the sides are unable to reach an agreement, international arbitration would be an option.
“If North Korea breaches its agreements, Hyundai Asan might consider taking the issue to an international court as a last resort,” she said. “After that, the government could also consider a similar move. That would be a last resort as well.”
She did not elaborate on which body would be appealed to, but that the administration would follow “very basic procedures.”
A Hyundai Asan official did not confirm whether it was mulling such a move.
“We are waiting for the end of June, when North Korea will publish what measures it will take,” the official said. “After that we’ll settle on our position and consider a diverse range of responses.”
Pyongyang has been pressuring Seoul to resume tours to the resort in a bid to earn hard currency and buoy its economy, hobbled by international sanctions.
The tours were launched in 1998 after agreements were reached between both governments and between the North and Hyundai Asan. The former contract does not mention international courts as a venue for arbitration, while the latter does.
The lucrative program came to a halt in 2008 when a South Korean tourist was shot dead after apparently straying out of the resort area. Seoul wants an apology for the incident and security guarantees before the reconciliatory project is resumed. Pyongyang insists it has done all it can to address the concerns.
In frustration, the North seized or froze several South Korea-owned properties last year, and last month passed a law to develop the site as a special zone for international tours.
The Hyundai Asan official said the firm should be allowed to visit the North.
“We should be able to come to the table by the end of the month,” the official said, adding that dealing with the issue would “take some time.”
Spokeswoman Lee said, “We have to give some time to see. The government is responsible for protecting the rights of its businesses. So we would consider our options. Bringing the case to an international court would be a last resort.”
Experts said if the North opens the resort to outside investors, it would likely fall into the hands of those from China, with which the North has ever deepening economic ties. Such a development could happen within two-to-three years, they said.
The North is believed to be pushing all avenues to improve its economy by next year, when it has pledged to become a powerful nation and a hereditary succession is thought to be completed.
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