North Korea forces talks over Mount Kumgang resort

BBC News

Mount Kumgang was meant to showcase co-operation

South Korean businessmen have attended a meeting at a North Korean tourist resort after Pyongyang threatened to seize their assets if they did not.

The threat is the latest move by North Korea to pressurise the South to lift its ban on tours to Mount Kumgang.

Built with South Korean money, the resort used to earn the North tens of millions of dollars a year.

But tours were suspended nearly two years ago when a South Korean tourist was shot dead by North Korean guards.

Housewife Park Wang-ja, 53, was killed on 11 July 2008 on a beach near the resort.

South Korea says it wants the killing - when the tourist allegedly strayed into a military area - properly investigated before it allows tours to resume.

Cash-strapped state

The BBC's John Sudworth in Seoul described Thursday's meeting as "unusual", and the result of threats by the North to begin seizing South Korean-owned property.

Pyongyang last week summoned the companies, saying it wanted to conduct a survey of their property and that those who failed to attend would have their assets seized.

According to Yonhap news agency, the group were told at a 15-minute meeting at the resort that the survey would take until 30 March.

Seoul has questioned Pyongyang's explanation of the July 2008 shooting

The group are now returning, leaving behind three officials from the state-run Korea Tourism Organisation whose property will be inspected on Friday, the agency quoted an official as saying.

The purpose of the survey is not clear.

But North Korea has said that unless the tours restart, it will consider cancelling all agreements and contracts, and seeking a new business partner.

Observers suggest that the North is becoming increasingly desperate for sources of foreign cash as it labours under a strict sanctions regime, and still suffers the effects of last year's badly managed currency reform.

Mount Kumgang, which was meant to symbolise inter-Korean co-operation, looks increasingly like a token of continuing mistrust and tension, our correspondent says.