South Korean firms will be entitled to lease properties in the North's Mt. Kumgang resort area. Pyongyang has approved real estate regulations for the resort area located north of the DMZ.
The real estate regulations for Mt. Kumgang allow foreigners and their firms, including those from South Korea, to acquire the rights to use land or buildings in the mountainous area.
The regulations stipulate that those who legally acquire rights to use land are protected from revocation of the rights within the lease period. In addition, Leaseholders can extend the period of a lease and also transfer leases on land or buildings to a third party.
To limit possible speculation on the land, the DPRK’s laws bans any activities contrary to the public interest, such as real estate speculation.
The mountain resort is the only tourist spot in the North that South Koreans can visit. A cross-border tour, launched by the Hyundai Group in late 1998, has so far drawn more than 784,000 visitors, according to Hyundai Asan. Asan, a massive investment for Hyundai, has yet to show a profit, accumulating huge losses each year. Hyundai Asan is expected to get the biggest boost from the regulations by inviting foreign investors to join the ongoing project to develop Mt. Kumgang.
Seoul also welcomed North Korea's approval of insurance policies for firms operating at an industrial complex in Kaesong.
Both approvals by the North's government are seen by Seoul to boost in inter-Korean business projects.
The insurance regulations require South Korean and foreign businesspeople in the North's border town of Kaesong to buy insurance from a company selected by the Pyongyang government according to the Korean Central News Agency (KCNA).
The policy presented by the North covers both natural and man-made disasters, including fires, explosions and traffic accidents.
The Kaesong industrial complex, being built by Hyundai Asan and the state-run Korea Land Corp., is one of the most prominent results of inter-Korean reconciliation that began with the historic leaders' summit in 2000.
The complex, only a few kilometers to the north of the heavily-fortified demilitarized zone, is intended to be used by hundreds of South Korean garment makers and other labor-intensive companies that will take advantage of cheap but skilled North Korean labor.
No comments:
Post a Comment