N. Korea unwilling to repay loans from South

By Kim Hyo-jin

North Korea seems unwilling to repay loans it received from South Korea when inter-Korean relations were good in the 2000s, an opposition lawmaker claimed Thursday.

Citing data from the Export-Import Bank of Korea (Eximbank) and the National Assembly Budget Office, Rep. Shim Jae-cheol of the main opposition Liberty Korea Party (LKP) said the North's outstanding liabilities are 161.4 billion won ($142.5 million) as of July, out of accumulated loans of 1.05 trillion won ($932 million).

"North Korea has not paid back a penny since 2012 but the government has yet to come up with any countermeasure," Shim said.

"The amount of redemption must have been used in nuclear and missile development. The government should do its utmost not to lose the entire 1.05 trillion won, which is the people's tax money."

According to the National Assembly data, the Kim Dae-jung government offered loans worth 369 billion won ($327 million) and the Roh Moo-hyun administration provided as much as 683.7 billion won ($650 million) in the form of food, material and equipment.

It started in 2000 after Seoul and Pyongyang reached a deal for food loans as part of efforts to boost inter-Korean exchanges.

The offer was suspended at the onset of the conservative Lee Myung-bak government amid the worsening of inter-Korean relations.

The redemption dates of multiple loans started in 2012 but the reclusive country has shown no sign of paying its debt, the lawmaker said.

"The government has demanded North Korea redeem the loans by sending a regular notification through the Eximbank on a quarterly basis, but there has been no reply from the North," said a unification ministry official who asked not to be named.

"There is no way to enforce the agreement. We are just doing everything we can. Due to worsening inter-Korean relations since 2012, we have had no opportunity of discussing the issue with the North's working-level officials."

The North repaid 2.7 billion won ($2.4 million) in goods in 2007 and 2008, including zinc. But the cash redemption has never been implemented, according to the data of the Assembly.