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Berlin: Hostel on North Korean embassy site has to close

For a few years now, backpackers in Berlin have felt as close to Kim Jong Un as they have anywhere else North Korea, But the bizarre hostel also causes diplomatic strife, because it is located on the embassy grounds. Now the operation could soon be over. Because the Berlin administrative court rejected a lawsuit against dismissal of the hostel operation.

Since the totalitarian regime in Pyongyang celebrated its fifth successful nuclear test in autumn 2016, the hostel has been occupying the federal government as well as the courts – and the Berlin-Mitte district office. Since 2017, an EU regulation on the basis of UN sanctions has also officially prohibited real estate transactions with North Korea in order not to provide the state with foreign currency for its nuclear weapons program. The Berlin District Office therefore prohibited operation in 2018, whereas the hostel operators filed a lawsuit.

Despite the sanctions, they consider their business to be lawful. The operator EGI GmbH has not paid rent since April 2017 for the former embassy building in which she has been running the “City Hostel Berlin” since 2007, the lawyer of the company, Felix Hahn, said in court. In his view, this would not violate the sanctions. The court, on the other hand, considered it to be proven that the operation constituted at least one prohibited activity in connection with the use of property owned by North Korea.

North Korea had already sent the hostel operators a termination in 2017, under pressure from the federal government, as stated in the letter of termination, EGI GmbH objected – but, according to its lawyer, stopped paying the monthly rent of 38,000 euros. North Korea also filed an eviction suit at the Berlin Regional Court around two years ago – but for a long time did not pay the advance payment of the legal costs. The eviction suit has now been served, said Hahn.

In the current attempt to prohibit this, the district office is now relying on regulatory law, which allows authorities to take measures to avert existing threats to public security or order. This also includes the violation of applicable EU law. According to a spokeswoman, the federal government is not involved. However, representatives of the Federal Foreign Office observed the court process.

The hostel in Berlin also angered the parents of the US student Otto Warmbier, who died in 2017 after North Korean imprisonment. They called for tougher action against the Pyongyang regime and the closure of the hostel, such as the end of 2019 NDR, WDR and “Süddeutsche Zeitung” reported, But beds can still be booked to this day. Despite the verdict, this could still be the case for months before the district can enforce closure by coercive means. In addition: The operators can still appeal against the judgment.

Case number VG 4 K 135.19

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