Inter-Korean cooperative tourism business has turned mutual confrontation and tension between two Koreas for the past 50 years to a peace, stability, mutual understanding and co-prosperity. Currently, with a million tourists visiting Mt. Kumgang, a new chapter for reconciliation and peace opened in inter-Korean cooperation. This study was initiated as an attempt to discern how inter-korean cooperative tourism business can effectively promote local tourism and economy. The purposes of this study are (1) to explore the present tourism situation of Goseong in Gangwon province such as tourism policy, tourism ressources and infrastructure, tourism products and tourist arrivals; (2) to examine the effect of Mt. Kumgang Tourism Business on the tourism development of Goseong; and (3) to investigate any significant relationship among its factors. This study examines the experiences of 189 Goseong resident groups. The findings of this study will provide future policy makers with useful implications in tourism planning and management.