Photo: AFP

 
South Korea proposed talks with North Korea on how to handle the North's Mt. Kumgang resort, once a rare example of cooperation between the Koreas, which Pyongyang wants removed amid frayed ties, Seoul's Unification Ministry said on Monday.

North Korean leader Kim Jong-un said last week he ­wanted the "shabby" and "capitalist" facilities removed and rebuilt in the latest sign of cooling relations between the two Koreas.

The Unification Ministry, which oversees inter-Korean affairs, said it asked the North to hold a working-level meeting to discuss the issue. 

Pyongyang suggested last week the subject be handled through the exchange of documents.

"Our consistent position is that all issues of inter-Korean relations should be resolved through dialogue and discussions," ministry spokesman Lee Sang-min told a briefing.

"There needs to be sufficient consultations to reasonably resolve the issue since a unilateral step regarding our companies' property rights runs counter to public sentiment and may damage inter-Korean relations." 

Any pullout of South Korean facilities from the scenic resort would be a fresh blow for President Moon Jae-in's attempts to promote peace between the old foes, including efforts to ­kick-start stalled business projects.

Mt. Kumgang, located on the North's eastern shore just beyond the heavily fortified border separating the Koreas, is one of two major inter-­Korean economic initiatives, along with the Kaesong factory park.