North Korea has unveiled plans to cancel a contract with Hyundai Group that grants the South Korean conglomerate exclusive rights over tourism at Mount Geumgang.

The North’s state-run Korean Central News Agency quoted a spokesman for the Asia-Pacific Peace Committee as saying Friday that it was terminating the validity of a provision of an agreement with Hyundai on tours to the scenic mountain resort which grants exclusive rights to Hyundai over the tours. The spokesman said that the decision comes as there is little possibility that the tours to Mount Geumgang will resume.

The spokesman added that the committee hopes Hyundai will continue on operating tours to the mountain resort for South Koreans but was quick to add that Pyongyang will take charge of tours to Mount Geumgang via the North. The spokesman also hinted that Pyongyang may entrust an overseas business firm with such tours.

The spokesman said the committee had informed Hyundai of its plans and conveyed an official document regarding the matter. He added that Pyongyang will soon take followup measures related to the Mount Geumgang tour but failed to elaborate on details.

In Seoul, a government official said the North’s decision not only violates agreements reached between Hyundai and North Korea but it also violates agreements between the governments of the two Koreas. The official noted that the North’s move also goes against international practices and urged Pyongyang to immediately withdraw its decision.

The tours were suspended in August 2008 after a South Korean tourist was shot dead by a North Korean soldier. At the end of April last year, the North froze assets held by Hyundai Asan at Mount Geumgang shortly after the sinking of the “Cheonan” naval vessel.