Seoul
South Korea’s unification ministry announced on Monday it is reviewing measures to reclaim loans provided to North Korea for the construction of inter-Korean roads and train tracks. This follows North Korea’s recent destruction of parts of these routes in October.
On October 15, North Korea demolished sections of the Gyeongui Line and Donghae Line, which connect the two Koreas, as part of its growing hostility toward the South. These land routes, essential for cross-border transportation, were partially funded by loans from South Korea between 2002 and 2008, amounting to $132.9 million.
The unification ministry, working with other government departments, is assessing whether these loans can be reclaimed, especially after the demolition of key infrastructure. The final loan amount remains undetermined due to procedural issues, and the ministry is considering taking immediate steps to recover the funds without offering a grace period.
Additionally, South Korea’s policy plan for the second half of President Yoon Suk Yeol’s administration includes expanding support for North Korean defectors. This includes a pending bill in the National Assembly offering tax incentives to companies that employ defectors who have resettled in the South.
