South Korea Review Loan Collection For North Korea's Road And Rail Construction

North Korea's detonation of roads and rails near the border. (Source: KCNA)

JAKARTA - South Korea's Unification Ministry said on Monday it was reviewing measures to collect loans given to North Korea to build inter-Korean rail roads and rails, after Pyongyang ordered them to crash last October.

The Unification Ministry revealed the tentative measures as part of its policy plan for the second half of President Yoon Suk-yeol's administration.

On October 15, the Pyongyang Government ordered the destruction of parts of the roads and railroads connected to South Korea on the Gyeongui Line in the western border region and the Donghae Line along the east coast as it escalated hostilities with Seoul.

The Unification Ministry said the review was underway, in collaboration with other relevant ministries, to seek loan collection to North Korea amid fears of a possible refusal to pay it back after blowing up inter-Korean roads and railroads.

From 2002-2008, South Korea provided loans in the form of goods worth 132.9 million US dollars to North Korea to build roads and railroads along two inter-Korean routes.

"Because the amount of the loan has not been determined due to procedural issues, the ministry is reviewing whether the determination can be made now and whether action can be taken immediately to collect a loan without a grace period," a ministry official said. November 18th.

Under the policy plan, the ministry will also seek to increase aid to North Korean defectors, including through a revised bill, which is currently delayed in the National Assembly, aimed at providing tax cuts to companies employing North Korean defectors who have settled in South Korea.