Despite the thawing inter-Korean relations this year, the project faced much hardship this year, mainly due to the difficulties Hyundai went through. After two years of the Mt. Kumgang tours, the landmark project, the number of visitors hovered at 360,000 in total, less than the 500,000 needed to make ends meet. Such difficulties, coupled with the severe liquidity crisis the Hyundai group went through, with Hyundai Construction once on the verge of bankruptcy. Some attributed the Hyundai crisis, which rocked the country with gloomy forecasts for another recession, to the overt expansion of its North Korean projects, saying they were politically motivated and lacked economic reasoning. Taking into consideration that the project is part of the state-level efforts to bolster trade between the two Koreas, there are still plenty of attractions the industrial park offers to potential investors.
Location is one big lure.
Kaesong is easily accessible from Seoul as well as Pyongyang, and commuting takes less than an hour. Currently, the Seoul- Shinuiju railroad is currently being reconnected after having been severed for more than 50 years, with an aim to finish he project by next September. The railroad, which passes Kaesong, will transport goods all the way across the continent to Europe by land. An adjacent highway being built will also help cut the logistics cost. Inchon Harbor is also nearby.