This undated file photo provided by South Korean resort operator Ananti shows its golf resort near Mount Kumgang in North Korea.
SEOUL, April 27 (Korea Bizwire) — The government has been urged to seek compensation from North Korea for the latter’s unilateral demolition of South Korean facilities at the Mount Kumgang resort, a state-run research institute said.
The Institute for National Security Strategy said in a report released on Tuesday that there is almost no chance for Pyongyang to apologize or compensate for the demolition, stressing, “The South should keep the stance of identifying North’s responsibility and requesting compensation.”
It claimed that given that South Korean assets still remain in various areas, including the now suspended Kaesong industrial complex, the government should prevent the demolition of Mount Kumgang facilities from becoming a bad precedent and leading to the infringement of other property rights for South Korean assets in North Korea.
The report suggested that the Mount Kumgang tourism project would have a dim outlook if Pyongyang carries it out independently without cooperation from Seoul.
In addition to the border closure resulting from the COVID-19 pandemic, the report noted that the Chinese do not have much interest in Mount Kumgang.
North Korea may not be able to attract foreign investment due to economic sanctions.
However, even if foreign investment is available, the unilateral demolition of South Korean assets at Mount Kumgang would have dealt a heavy blow to its international credibility, one of the key issues affecting the attraction of foreign capital.
Previously, there was a sign that North Korea demolished South Korean-owned assets in Mount Kumgang, including the Haegeumgang Hotel and Ananti golf resort.
M. H. Lee (mhlee@koreabizwire.com)
