SEOUL - North Korea has agreed with Hyundai Asan, the Hyundai group arm in charge of North Korean business, to open a land route to help vitalize the sagging Mt. Kumgang tourist project.

Providing a breakthrough to the stalled inter-Korean project, the reclusive North Korean regime and a Hyundai management team agreed on a package of steps covering the payment of entrance fees to the scenic mountain and designation of the Mt. Kumgang area as a special tourism promotion zone.

Hyundai Asan President Kim Yoon-kyu, who has recently returned from his visit to North Korea along with Hyundai Asan chairman Chung Mong-hun, said the company and the North’s Asia Pacific Peace Committee agreed to begin construction of the 13.7 km roadway linking Kosung, in the North, to Songhyun-ri, in the South, as soon as possible.

"Hyundai and the committee agreed to urge the related government authorities to begin talks sometime in June to make progress regarding the exact timetable for the launching of the construction," Kim said during a press conference June 10 in Seoul.

Concerning the payment in return for the tourist program, Kim said Pyongyang officials agreed to let Hyundai appropriately pay within its capacity and refrain from excessive demands until the new tourist project gets revitalized.

He forecast construction, expected to cost between 60 billion and 100 billion won, would be completed before the first half of next year, enabling domestic and foreign tourists to enjoy the inland tourism project starting the latter half next year.

"Hyundai will pay the money in accordance with the profits in consideration of the number of arrivals, for instance," he said.

Hyundai is set to pay to total of $22 million to Pyongyang as it has failed to pay fees from the end of last year due to an aggravating financial crunch at the lackluster tourist project.

"We will pay the money as soon as we will be able to get assistance from creditor banks and the government," he said, expressing confidence that the firm would be able to see profits in less than one year after starting ground-route access.

Kim said Hyundai Merchant Marine, which has operated cruise ships for the tourist project, will be excluded from the program, with Hyundai Asan set to entirely handling the matter.

Kim disclosed that Pyongyang has also agreed to set up a special law within two months with regard to the designation of the Mt. Kumgang area as a special tourism zone.

The envisioned naming of the special tourism zone will help promote the Kumgang area as an international hub for trade, commerce, finance and culture as well as tourism, he said.

"The designation would also expedite possible foreign investment into the region as it will offer a legal guarantee for potential investors in terms of safety, tax and other benefits," he said.