North Korea is currently in the process of transforming the city of Wonsan on the country’s east coast into three districts: a financial district, entertainment and sports area and tourist destination.

Wonsan is port city and naval base and was one of Kim Jong-il’s favorite vacation destinations in the country. The construction of a beach resort is seen as son Kim’s fulfilment of his late father’s wishes.

In 2007, the elder Kim rejected proposals from former South Korean President Roh Moo-hyun to develop the city into an industrial park and complex, on grounds that the bay is a “holiday destination.”

To transform the region and turn it into a resort-town, the government plans to shut down the automobile plants and shipyards which operate in the city according to the Korea JoongAng Daily.