Pyeongyang first notified Seoul late last month that it should come and demolish its facilities and that the details could be decided through written exchanges.
In turn, South Korea suggested holding working-level talks and sending a team north to inspect the facilities -- both of which were rejected.
Seoul has been looking to create an opportunity for the two sides to meet and talk face-to-face inasmuch as the tours began as a "joint project" and in view of their historical significance.
But with Friday's report in the North's state media, the regime has completely rejected that possibility.
A North Korea expert says Pyeongyang never intended to "discuss and mutually agree" to the tearing down of South Korean facilities it had already made up its mind.
"What North Korean leader Kim Jong-un meant by 'discussing' with South Korea was not in terms of whether or not to remove the facilities but to settle issues of property rights. This reflects Pyeongyang's ambition to develop its economy through tourism."
The North aims to finish building the Wonsan-Kalma tourist area on its eastern coast by next April and Mount Geumgang is included in this zone.
It's believed North Korea would want to work on Mount Geumgang as well and put an end to 10 years of neglect.
The North wants to develop and run the tours independently and would let South Koreans come later.
In the meantime, Seoul is looking for a breakthrough.
Unification Minister Kim Yeon-chul met Thursday with Hyundai Group chairwoman Hyun Jeong-eun and with other business operators on Friday.
But with the fate of the symbolic inter-Korean project now unclear, the key for Seoul will be to ensure that South Korean property is secure.
Kan Hyeong-woo, Arirang News.