A South Korea company owned by the Unification Church, whose followers are known as the Moonies, says it's struck a deal with North Korea to build a luxury tourist resort for foreigners there.

The company, the Tongil group, says it's to set up a hotel and ski resort and expand development of a tourist zone on Mount Kumgang.

It's the second South Korean firm to make such an arrangement with North Korea, which is suffering a severe famine and is desperately short of foreign currency.

An earlier tourist deal was announced by Hyundai, which had been due to start tours last month until arguments over charges delayed the launch.