Relationship soured after Hyundai-Asan CEO’s resignation
Pyongyang is seeking a new partner for a golf course construction project in the Kaesong (Gaesong) Industrial Complex to replace Hyundai-Asan from last year. According to the industry yesterday, North Korea’s Asia Pacific Peace Committee signed a letter of intent with Daegu-based Unico in December last year, after consultations on a plan to build three golf courses in the Kaesong industrial park. Under the letter of intention, Unico is going to pay US$30 to 40 million to rent 5 million square meters (1.5 million pyong) of land to develop three golf courses in the next 50 years. The company has yet to apply to the Ministry of Unification for the project. But Hyundai-Asan, which holds exclusive rights for the development of 33 million square meters of land in the industrial complex, has already signed a memorandum of understanding (MOU) for the project with Emerson Pacific Group, which has been constructing golf courses on Mt. Kumgang (Geumgang) in the North.An official of Hyundai-Asan said that his company "has a right to choose its partner for the golf course construction project." The relationship between Hyundai and North Korea turned sour over Hyundai-Asan CEO Kim Yoon-kyu’s resignation last year, amid allegations of corrupt business practices between the company and North Korea. Several South Korean companies have shown interest in the golf course project. In addition, a real-estate consulting company announced that it and North Korea in February agreed to construct a golf course and a casino in the Kaesong complex.
