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N. Korea Delays Beach Resort Plans; Analysts Blame Sanctions


FILE - North Korean leader Kim Jong Un inspects the construction site of the Wonsan-Kalma coastal tourist area in this undated photo released by North Korea's Korean Central News Agency in Pyongyang.
FILE - North Korean leader Kim Jong Un inspects the construction site of the Wonsan-Kalma coastal tourist area in this undated photo released by North Korea's Korean Central News Agency in Pyongyang.

North Korea has again pushed back the construction end-date of a massive beach resort, a move analysts say shows the regime is struggling from international sanctions imposed over its nuclear weapons programs.

The eastern seaside strip, known as the Wonsan-Kalma Coastal Tourist Area, is intended as a centerpiece of the isolated country’s nascent tourism industry as Pyongyang seeks to develop its economy despite the tough economic measures.

The site’s construction has been closely overseen by leader Kim Jong Un, and it was initially scheduled to open this April, to mark the birthday anniversary of the country’s founder Kim Il Sung.

But in a recent visit to the site, Kim delayed the finish date for the second time, ordering construction to be completed by the same time next year, the North’s official Korean Central News Agency (KCNA) reported Saturday.

North Korean Leader Kim Jong Un visits the construction site of the Wonsan-Kalma coastal tourist area, North Korea, in this photo released April 5, 2019, by North Korea's Korean Central News Agency.
North Korean Leader Kim Jong Un visits the construction site of the Wonsan-Kalma coastal tourist area, North Korea, in this photo released April 5, 2019, by North Korea's Korean Central News Agency.

Sanctions hamper work

The decision, would allow the workers “to perfectly finish it so that our people would fully enjoy themselves in the impeccable tourist area from the sea-bathing season next year,” KCNA quoted Kim as saying.

The plan was first pushed back last August when Kim extended the project by six months to October 2019.

The isolated North is under several sets of sanctions for its weapons programs, which analysts say has hampered efforts to secure materials needed to finish the vast beach complex.

“North Korea can complete the external construction of the hotels by itself but most of the finishing materials for the interior are imported,” Cho Han-bum, a senior researcher at the Korea Institute for National Unification, told AFP.

The economic measures banned imports of some items, and Pyongyang was supplying the sanctioned goods with its foreign currency, Cho said, adding: “But that has also dried up.”

North Korean Leader Kim Jong Un visits the construction site of the Wonsan-Kalma coastal tourist area, North Korea, in this photo released April 5, 2019, by North Korea's Korean Central News Agency.
North Korean Leader Kim Jong Un visits the construction site of the Wonsan-Kalma coastal tourist area, North Korea, in this photo released April 5, 2019, by North Korea's Korean Central News Agency.

Construction almost done

Satellite images taken by U.S. monitors in December showed the buildings previously under construction were nearing completion.

“The North Korean economy has hit a limit with the sanctions,” Cho added.

Immediate sanctions relief was a key demand of the cash-strapped North when Kim met with U.S. President Donald Trump in Hanoi in February for a second summit that ultimately broke down.

Trump, the former real estate developer turned billionaire, has praised North Korea’s tourism potential, referring to its “great beaches” he said would make ideal locations for condos.

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