Tokyo accused of blocking deal for North Korean 'embassy'
Priest had tried to purchase building in bid to keep liaison office, but was shunned by banks
The organisation that represents North Korean residents of Japan accused the Japanese government of blocking the sale of its headquarters in Tokyo to a priest who wanted to permit the Chongryon group to remain in the building.
Ekan Ikeguchi, the chief priest of the Kagoshima-based Saifukuji temple, has admitted defeat in his campaign to raise 4.52 billion yen (HK$341.45 million) for the 10-storey building and the prime 2,300-square-metre plot that it occupies in the Chiyoda district.
The building - the venue for several events every year in honour of the North Korean leadership - was sold off in March by government-backed Resolution and Collection, in a bid to recoup loans amounting to more than 62 billion yen that it had extended to the residents' association.
Ikeguchi said he hoped that by permitting Chongryon to remain in the property, which acts as North Korea's unofficial embassy in the absence of formal diplomatic links, it would "promote harmony among Asia's different ethnic groups, including North Korea".
Announcing he had been unable to raise the funds, Ikeguchi said: "It is extremely regrettable. I wish to offer my apology to companies that I sought loans from and the court."
Discussions with five financial institutions and companies failed to raise the 4.52 billion yen, which was a lot higher than the 2.69 billion yen that the Tokyo District Court had estimated as the value of the property.