KNTO crosses new frontier to North Korea

Tina Milton

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Korea National Tourism Organization (KNTO) has opened a new duty-free store at the Geumgangsan mountain resort in North Korea, after nuclear arms tests last year delayed the opening

State-owned South Korean duty-free operator Korea National Tourism Organization (KNTO) has finally opened its 990sq m (10,650sq ft) duty-free store in Geumgangsan in North Korea. The duty-free shop began operations on May 16 and goods will be supplied from KNTO’s duty-free location at Busan Gimhae International airport.

KNTO secured a deal with Hyundai Group division Hyundai Asan to be the exclusive duty-free operator at the Geumgangsan mountain resort, ousting incumbent  Koryo Samwhan,  in August.

The 40-year contract gives KNTO licence to install long-term foundations for its duty-free offer at the resort. It also takes over a 132sq m (1,420sq ft) Hyundai Hotel Haegumgang shop and a 100sq m (1,076sq ft) Onjunggak duty-free area with a souvenir and restaurant outlet.

The resort, developed by Hyundai Asan, is close to the eastern end of the frontier between North and South Korea. It was constructed in 1997 and the duty-free business was established in 2001.
An agreement between the South and North Korean governments designated Geumgangsan as a special tourist zone, which only allows entry to South Korean tourists.The resort welcomed 500,000 visitors last year,150,000 of which were believed to be duty-free customers.

KNTO also operates duty-free stores at Seoul  Incheon airport, Cheongju  airport,  Seoul Incheon port, Busan port, Pyeongtaek port, Sokcho port, Gunsan port and Mokpo port in South Korea.