South Korea’s Ministry of Unification has called North Korea’s recent bid to coax foreign businesses into investing in its Mt. Kumgang cruise program, “an attempt to divert external attention away from its nuclear weapons program despite international condemnation and sanctions.”
“North Korea continues to sabotage inter-Korean relations and its own economic cooperation with other countries through its repeated provocations and pursuit of nuclear weapons. The current announcement appears to be an attempt to deflect accusations by presenting the North as a country open to economic reform and investment,” said a Ministry of Unification official at a recent press briefing.
“The closure of North Korea’s doors are of its own doing, and in the absence of any clear evidence, we have no reason to believe that this suggests otherwise.”
North Korea is seeking 20 million USD to purchase Royale Star, a Soviet-era cruise ship capable of carrying 1,000 passengers, according to the proposal listed on the Mount Kumgang region website.
Regarding the possibility of procuring foreign investment, the ministry spokesperson added, “The reason why North Korea lacks foreign investment is due to its history of untrustworthiness. Investors are unable to accurately project profit estimates when investing in North Korea, as the country does not follow international norms or the rule of law.”
The spokesperson also remarked on the possibility of Chinese investment, adding, “It is not easy to predict responses from Chinese investors because there are lots of Chinese companies currently investing in North Korea. However, it seems unlikely that China will invest much in the Mt. Kumgang tour project. As 99% of the tourists previously visiting Mt. Kumgang were South Koreans, the tour program will not return to its former state unless South-North relations are repaired.”
