Lee Hee Tae had high hopes for his sex festival, which he proudly billed as South Korea's "first and largest".
Inter-Korean relations are at a low point not seen in decades, fuelled by the North's weapons tests and war talk.
South Korea's economy likely grew 0.
North Korea claims it tested a new nuclear weapons command-and-control system Monday, with the firing of projectiles carrying simulated nuclear warheads from multiple rocket launcher units.