Large-scale SOC project in North Korea
Hyundai Asan signed an agreement with the Korea Asia-Pacific Peace Committee(“APPC”) and the National Economic Cooperation Federation in North Korea to be granted business rights for major social overhead capital(SOC) projects in North Korea, such as power utilities, telecommunication, railroads, airport, dam, use of water reservoir and tourism.

The agreement states that the North “agreed to bestow all business rights solely to Hyundai for a period of 30 years with regards to the concrete development, construction, blue-print, maintenance, and management regarding infrastructure projects and core industries projects and related trade and others that are being financed single-handedly by Hyundai in North Korean territory, or financed by a third party nation, group, specific fund, or international organization”

In relation to these business rights, North Korea’s Leader, Kim Jong-il approved the validity of these rights during the meeting with chairman Chung Mong-Hun on June 29 and Aug 9, 2000, while the North Korean cabinet ministers officially confirmed that they would see to the fulfillment of the agreement. In addition, APPC made an announcement via the Korean Central News Agency in Pyongyang on March 9, 2003 that “all business rights regarding the Mt. Kumgang tourism business, Kaesong industrial complex and other SOC projects have been handed over to Hyundai.” This announcement proves that North Korea is willing to carry out its promise related to the Hyundai’s business rights to various inter-Korean economic cooperation projects.