With Seoul approving Hyundai Group’s visit to North Korea scheduled for Friday, all eyes are on whether the visit will contribute to the revival of inter-Korean economic cooperation amid the US’ determination to keep sanctions intact until the North’s complete denuclearization.

A group of 15 officials from Hyundai, including Chairman Hyun Jeong-eun and Lee Young-ha, CEO of the group’s inter-Korean business arm Hyundai Asan, has been permitted by the Unification Ministry to visit Kumgangsan, located on the North’s east coast.
 

The official purpose of the visit is to hold a memorial service for the group’s late Chairman Chung Mong-hun, which had been held regularly since his passing in 2003, but was halted over rising border tension in 2016 and 2017. Hyun is the widow of the late Chairman Chung.

Despite the official purpose of the visit, industry insiders are expecting discussions related to inter-Korean businesses to take place, as North Korean officials have often participated in the service in the past.

Resumption of a cross-border tour program to a resort in Kumkangsan -- which was launched in 1998, but banned following the fatal shooting of a female tourist by a North Korean guard in 2008 -- is likely to be a key topic if discussions take place.

Hyundai has been rebooting its inter-Korean business team after the summit between South Korean President Moon Jae-in and North Korean leader Kim Jong-un in April, launching a special task force led by Hyun herself, for the inter-Korean business sector in May. The Panmunjom Agreement reached between the two leaders promotes cross-border economic cooperation.

Despite high hopes surrounding the visit, experts say that the resumption of such inter-Korean businesses depends on the progress in denuclearization talks between the US and North Korea, coupled with international sanctions against the reclusive nation.

“When the third inter-Korean summit takes place, more ‘solid gifts’ would have to be exchanged between the two Koreas -- President Moon would have to prepare resumption of the Kaesong industrial park and tours to Kumgangsan, while Kim would have to show more proof regarding its denuclearization,” said Yang Moo-jin, a professor at the University of North Korean Studies.

“But it would mean nothing without progress in US-North Korea talks.”

North Korea’s state-run newspaper Rodong Sinmun on Thursday published an editorial that called for South Korea to deal with inter-Korean ties separately from the US-led sanctions campaign, days after it released a similar article calling for swift resolution of the now-defunct Kaesong industrial park and Kumkangsan tours.

Meanwhile, Seoul is consulting with the United Nations to get sanctions temporarily exempted for the operation of an inter-Korean liaison office in the North, a Unification Ministry official told reporters on customary condition of anonymity.

South Korea earlier requested the UN to consider exemptions from sanctions for the liaison office in the North’s border town of Kaesong set to open within this month.

The waiver request is intended to address possible problems that could arise in operating the office, such as fuel supply to generate electricity for the facility.

South Korea has secured a waiver on sanctions related to preparations for the family reunion event to be held from Aug. 20-26 at the Kumgangsan resort.

By Jung Min-kyung (mkjung@heraldcorp.com)