SEOUL, April 29 (Yonhap) -- North Korea's rubber-stamp parliament said Friday that it will set up a special zone for international tours of the country's troubled mountain resort in an apparent move to induce foreign investment.

   The North "will encourage free investment in the development of the special zone by corporate bodies, individuals and other economic bodies and will protect by law the invested capital and properties and income and other profits to be gained through business," the North's Supreme People's Assembly said in a decree carried by the country's official Korean Central News Agency (KCNA).

   The legislature said North Korea's sovereignty will be exercised over the zone that includes several areas on Mount Kumgang, a scenic resort on the country's east coast.

   It also said the agency in charge of tourism will take relevant measures to increase new tourist destinations, depending on the progress in the special zone development. No details were provided.

   Lee Jong-joo, a spokeswoman for South Korea's Unification Ministry handling inter-Korean affairs, said the North's move appears to be aimed at attracting foreign capital to develop the resort.

   A spokesman for Hyundai Asan, a key South Korean tour operator in the mountain resort, said his company had no immediate comment on the North's announcement. He asked not to be identified as he was not authorized to speak to media.

   The decree came weeks after Pyongyang terminated exclusive tourism rights for Hyundai Asan, citing skepticism over the resumption of the joint venture.

   The two Koreas launched the joint tour program in 1998 as part of moves to boost cross-border reconciliation and cooperation, providing a legitimate source of hard currency to the cash-strapped North.

   However, Seoul suspended the tour program in 2008 when a female South Korean tourist was shot dead after straying into an off-limits military zone near the resort.

   Pyongyang claims it has done everything to shed light on the shooting and guarantee the safety of future tourists, but Seoul says it has yet to receive a formal apology for the shooting or government-to-government promises to enhance safety.

  (END)