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Saturday, May 19, 2001

N. Korea says if Hyundai tour fails,
it will be U.S. military's fault

The U.S. military is to blame if the Hyundai Business Group tour to North Korea’s Mount Kumgang National Park fails, Radio Pyongyang charged in a report Thursday.

The four-day ferry tour to the park — just north of the eastern end of the Demilitarized Zone — began in late 1998, and more than 400,000 South Koreans had made the trip by the middle of last year. Since then, however, interest in the trip has waned significantly.

Hyundai, which offers the tour that gives rank-and-file South Koreans their only opportunity to visit the North, promised Pyongyang nearly $1 billion in licensing fees to operate the tour for 10 years. The company defaulted on a monthly payment early this year, citing a nearly $300 million business loss.

Tourists must sleep on the ferry that takes them to the park. Many say the trip is boring since there is little to do besides climb the scenic mountains and watch North Korean circus acts at the port where the ferry docks. They also complain of strict surveillance by North Korean officials and stringent regulations while in the park.

Hyundai hoped to make the trips more interesting by operating gambling casinos on the ferries, but the South Korean government nixed the proposal.

But the Radio Pyongyang report monitored Thursday by Naewoe Press, Seoul’s official North Korea media watcher, said claims by Gen. Thomas A. Schwartz and other U.S. military officials that money Pyongyang is making off the trips may be diverted to military use are to blame for flagging interest in the tour.

Schwartz is the senior U.S. military commander in South Korea.

The tour is open to both South Koreans and foreigners, but U.S. Forces Korea prohibits Status of Forces Agreement members from making the trip.


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