Karmic Justice for Kumgang Investors

North Korea’s threats to confiscate South Korean property at Kumgang are having predictable consequences for its investment climate:

In an interview with The Dong-A Ilbo yesterday, Ahn said the head of a conference member company recently died of a heart attack due to severe stress from his business in North Korea.

The suspension of the inter-Korean tours caused the late chairman’s company to teeter on the verge of bankruptcy, causing his death at age 55, Ahn said.

Ilyeon’s prospects are no better. Ahn has invested 14.7 billion won (12.9 million U.S. dollars) in his North Korea venture, including 13.4 billion won (11.8 million dollars) to build the hotel and additional facilities.

His company is six billion won (5.3 million dollars) in the red due to the suspension of the Kumgang tour. Its deficit slightly decreased in early 2007, but the killing of a South Korean tourist at Mount Kumgang in July 2008 by a North Korean soldier dealt another serious blow. [Donga Ilbo]

I suppose I’m not entirely unsympathetic to the family of someone who vapor locks at 55, but all in all, I have a lot more sympathy for Park Wang Ja and her family. Yes, enabling the repression and the occasional murder of other people can be risky, especially when your business partners turn out to behave just as unscrupulously toward you. Hat tip: Curtis.