By Nho Joon-hun
Staff Reporter

SEOUL - Hyundai Motor chairman Chung Mong-koo April 8 gave his clear and sturdy answer to any possibility of his company participating in North Korean projects: No.

There have been speculation that Hyundai Motor and Chung have been encouraged to take part in the project launched by his late father, Hyundai founder Chung Ju-yung, but the answer is obviously "no."

"Chung has no plans to visit the North and Hyundai Motor as a company will not be participating in North Korean projects," said one senior company official.

"Participating in North Korean projects will have a strong negative effect on Hyundai Motor as a specialized automaker and its competitiveness will be severely damaged," he added.

The official went on to say that Hyundai Motor will not be participating in North Korean projects in one way or another, particularly under pressure from third parties.

There have been speculations that even the government has been asking Hyundai Motor to bear some of the burden of North Korean projects that Hyundai has initiated, now that numerous other Hyundai subsidiaries are facing financial difficulties.

"Decisions on new businesses have to be made on the account of feasibility and we cannot be pressured into them by external parties," the Hyundai executive said.

Commenting on a recent report by a local vernacular newspaper that Chung was planning to visit the North, he said Hyundai Motor is preparing libel suits against the company.