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Large-scale SOC project in North Korea |
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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.
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