The government will not allow Lotte Tourism to conduct tours in North Korea.

An official on Wednesday said North Korea's tourism proposal to Lotte is a clear violation of the Hyundai Group's exclusive rights in the industry.

The North asked Lotte to take over a tourism project in the inter-Korean border town of Gaesong in protest after Hyundai Asan Corporation, the tour's original operator, fired its executive Kim Yoon-kyu for embezzlement.

The Lotte president said earlier this week that he got an offer to conduct the Gaesong tour during his recent visit to the North, but did not say whether he will accept.

A South Korean law on inter-Korean exchange stipulates approval of businesses in the North that does not trigger fierce competition with projects in progress.