N. Korea seeks foreign money for seized resort

Once a thriving resort and a symbol of  cooperation between Seoul and Pyongyang, the shops in North Korea's Mount Kumgang are shut and its hotels are empty. The golf course overlooking a sparkling sea is deserted, and a "closed" sign is pasted over the locks of clubhouse doors in the resort which is adorned with monuments to the glory of North Korean leaders. Mount Kumgang, renowned for its spectacular peaks, gorges and coastline, was opened in 1998 as a jointly-run destination for South Koreans, but tours were suspended 10 years later after a North Korean soldier shot dead a Southern visitor who strayed into a restricted zone. Several attempts to get the resort up and running again failed and last month Pyongyang seized the South Korean assets there. Now the impoverished Communist state is trying to lure in capitalist investors from other countries, despite strong objections from the South which has warned other nations against getting involved. "Our sincerity and efforts were obstructed by the South Korean government," said Kim Kwang-Yun, director of the North's Mount Kumgang International Tourism Leadership Bureau. Speaking to dozens of Chinese tour operators invited to visit, Kim laid out the North's investment plans for the area, including airport expansion, highway construction, and developing a skiing area. He was open to finance from all countries, he told reporters, adding that investors from China, Europe and the United States had already expressed an interest in the resort. But Pyongyang's capriciousness means he has a difficult pitch to sell. The North's seizure of the resort came after years of sabre-rattling punctuated by missile tests and the detonation of two atomic bombs. And last year Seoul accused Pyongyang of torpedoing one of its warships, with the loss of 46 lives -- poisoning negotiations aimed at resuming visits after the 2008 tourist shooting. For years Mount Kumgang was a vital source of hard currency for North Korea, which is desperately poor after decades of isolation and bungled economic policies, and suffers severe power and food shortages. An almost lone symbol of cross-border cooperation, it was developed by the South's Hyundai Asan after the conglomerate signed a contract with the North Korean government. Nearly two million South Korean citizens visited over 10 years and Leonid Petrov, a lecturer in Korean Studies at the University of Sydney, said it was the only place where North and South Koreans could fleetingly meet each other. "It was only North Koreans who had government permission to talk to foreigners -- like government minders and hotel personnel -- but it was more than nothing, and both North and South Koreans learned a lot about each other. "South Koreans could even drive their own cars, crossing the demilitarised zone, so it was unbelievable progress in inter-Korean reconciliation," he told AFP. With the flow of South Korean visitors turned off in 2008, Pyongyang opened up the area to domestic tourists in June last year, but since the country's economy is in ruins they pay only around 1,000 won (around $3) for a trip. A few international tourists also pass through. "This is a country that is quite secretive, and we'd like to know more about it, that's why we're here," said Nico Ng, a 55-year-old from Malaysia who was taking part in a organised hike. "But the actual result is we really didn't get anything," he said of his trip to the country which presented little opportunity to glean a better understanding. Simon Cockerell, managing director of the Beijing-based Koryo Group, which runs tours to North Korea, said it would be hard for authorities in the reclusive state to attract foreigners to the resort. "Mount Kumgang is very meaningful to South Koreans -- to all Koreans. It's well known as the most beautiful mountain range in Korea," he said. "But if you're Chinese, if you're Western, what do you care about that? Most Western tourists don't go to North Korea to look at mountains." While Beijing is Pyongyang's major ally, even a Chinese tour operator who listened to Kim's appeal said he was too wary about the political situation to sign up to the project. "Investment must have a stable environment, and you have to be able to control that environment," said the operator, who declined to be identified.