reprinted from:
North Korea designates tax-free international tourism zone
Copyright 2002 Agence France
Presse SEOUL - Stalinist North Korea has designated its eastern resort of Mount Kumgang as a tax-free special tourism zone, open to foreign investment, the North's state news agency KCNA said Monday. The designation was the latest of the communist state's new reform measures aimed at reviving its moribund economy. The Supreme People's Assembly, the highest decision-making parliamentary body in the North, legislated a law on November 13 designed to implement the tourist zone, KCNA reported. It said that the the state would permit "free investment of corporate bodies, individuals and economic organizations for the development of the Mount Kumgang Tourist Resort" and would "protect their property by law." The law, disclosed in detail by KCNA, stipulates no taxation and free foreign-currency flows for developers in the zone. The North's move is expected to help revitalize the wilting inter-Korean tourism project on Mount Kumgang, just north of the border near the eastern coast. The tourism project, carrying mostly South Koreans by ship to Kumgang, was launched in 1998 to bring in new rapprochement between the rival Koreas, but has now suffered losses due to sharp decreases in the number of tourists. "Anyone who wants to make an investment in the tourist zone should get a sanction to start a business and a work permit from the institution managing the tourist zone," the North's new law said. It also stipulated benefits aimed at attracting outside investors. "Tax shall not be levied on the development of the tourist zone and business activities undertaken by the developer," it said. "The fixed convertible currency may be used in the tourist zone and freely taken in and out." It also said "compatriots" in South Korea and overseas would not have to obtain visas to enter the tourism zone. But skeptics here remained doubtful that the North's move would lead to an immediate revival of the sagging inter-Korean tourism project, citing the stalled work on re-opening cross-border railways and roads. Work has come to a standstill on de-mining work necessary to re-link the railways and roads amid a dispute between North Korea and the United Nations Command, a body set up at the end of the 1950-53 Korean war to administer the South Korean side of the demilitarized zone. However the South's unification ministry on Monday hailed the North's designation of Mount Kumgang as an international tourist zone, saying it expected the move would stimulate and expand inter-Korean exchanges. Hyundai Asan Corp., the key operator of ferries bringing South Koreans to Kumgang, said Monday it expected tourists to be able to travel to Mount Kumgang by a cross-border road from early next week. Hyundai Asan also said it had reached a
50-year-long business license to develop Mount Kumgang. |
