 |
|
Gaeseong (Kaesong) industrial complex.
|
Unification ministry walks thin line during debate
North Korea reportedly signed a contract in December with South Korean land developer Unico to build golf courses in the North Korean city of Gaeseong, a revelation which has prompted backlash from Hyundai Asan, which claims it has exclusive rights to any business projects in the border city. As it did when the North proposed a business deal in Gaeseong to Lotte Tours Co. last year, South Korea’s Unification Ministry was expected to side with Hyundai Asan in the controversy. However, on August 4 the ministry responded unexpectedly. "We have not issued licenses to any companies to build golf courses [in Gaeseong], meaning no particular firms have a vested right." said Koh Kyung-bin, the ministry official in charge of the joint North-South industrial complex located in Gaeseong. "Companies in Gaeseong need to consult with one another" on the golf course issue, he said. Koh’s remarks seemed to deny any exclusive business rights in Gaeseong for golf courses, while at the same time putting pressure on Hyndai Asan to be more proactive in pursuing inter-Korean business projects.Gaeseong is a symbol of inter-Korean economic cooperation achieved after the heads of the two nations had summit talks in 2000. Hyundai Asan has spearheaded business projects in the city ever since. The South Korean firm, however, has recently failed to make headway in its Gaeseong business as the North has expressed displeasure with the company’s October 2005 dismissal of vice chairman Kim Yoon-kyu, Pyongyang’s long-time business partner, for allegedly misappropriating company funds. With the controversy mounting, on August 4 - the same day Unification Ministry official Koh Kyung-bin made the comments quoted earlier - Vice Unification Minister Shin Un-sang hurriedly arranged a press conference and said, "Any companies which want to build golf courses in Gaeseong must consult Hyundai Asan first." Hyundai Asan has reportedly expressed dismay regarding the current situation. It is also unhappy with the fact that it has been made to compete with the land developer Unico, established only one year ago and with no experience in building golf courses. Hyundai Asan already signed a memorandum of understanding with Emerson Pacific Group on the construction of other golf courses in Gaeseong. Emerson Pacific has been building golf courses at the North’s Mount Geumgang since 2004.
