South Korean Authorities are continuing looking into reports that a North Korean firm had sent letters of intent to South Korean and foreign companies seeking their investment in the North.

According to a South Korean official, there is the likelihood that a channel exists to solicit foreign capital aside from the already-known Taepung Group. However, no activities by a Pyeonggeon Investment Development Group have been identified.

The letter of intent revealed by South Korean media on Wednesday said Pyeonggeon was negotiating with foreign companies to attract investments to build 100-thousand housing units in Pyongyang in exchange for rights to develop resources in the North.

A South Korean source on North Korea said that while it is true that North Korea is sending large numbers of letters of intent to foreign companies, it will be difficult to find any company which is willing to invest in the project, considering the current state of inter-Korean relations.