This Kumgang Nonsense, Explained

What is the meaning of North Korea’s sudden spate of demands that South Korea resume tours at Mt. Kumgang, which ended with the 2008 killing of one of the tourists? Most likely, that the sanctions are working, that China’s bailout isn’t expected to arrive in time, and that Kim Jong Il needs the money. Even for North Korea, this sounds a bit desperate:

Accusing the south Korean puppet clique of making outcry, asserting the “incident of a tourist in Mt. Kumgang” which occurred in July 2008 was “an excessive retaliation” and “a bullet was fired at the defenseless tourist,” the report says this was as preposterous and brazen-faced sophism as patting a stray dog on the back. [KCNA]

Park Wang-Ja could not be reached for comment. What the South Koreans are demanding, however, is so minimal as to border on inadequacy: a simple guarantee that North Korea will quit shooting and arbitrarily arresting its citizens. And after all, when is the last time a North Korean guarantee meant anything?

North Korea says it has given all the guarantees it’s going to give and is now threatening to confiscate all of the Hyundai Asan and KTO property at Kumgang, which ought to do wonders for the investment climate there. “[A]ll experts” — at least, all those the Daily NK interviewed — “see the summoning of South Korean real estate owners as a pressure tactic to get the tours resumed.” The Daily NK thinks the North Koreans are bluffing, and that the South Korean government is calling the bluff. Well, maybe. The Korea Tourist Organization has $80 million worth of property at Kumgang, and Hyundai Asan has $200 million worth. Both entities are sending teams to Kumgang to survey their assets, apparently so that they can serve as a more effective warning to others.

This isn’t the end of the bad news for Bureau 39, either. South Korea has just announced that it’s ceasing the purchase of its “main import” from North Korea … sand.

It’s almost too much for me to believe, this idea that for once, North Korea’s bad behavior is accompanied by a financial cost, rather than a payday. Didn’t I warn the North Koreans not to make this Lee Myung Bak fellow angry? If only they were regular readers ….