The South Korean government said Monday that it is reviewing measures to recover loans to the North used for building inter-Korean roads and railways, which were partly demolished in October.
“The destruction of the Gyeongui Line and Donghae Line infrastructure by North Korea [on Oct. 15] signals Pyongyang’s unwillingness to repay the loans,” a senior official from the Unification Ministry said during a press briefing at the Seoul Government Complex, which focused on the Yoon Suk Yeol administration’s midterm achievements and future plans for unification policy.
“We are reviewing options for recovering the funds in coordination with relevant government ministries,” the official added.
North Korea says it destroyed parts of the Gyeongui Line and Donghae Line roads and railways as a response to the “grave political and military provocations of the hostile forces.”
The project, which aimed to connect the Korean Peninsula, received $132.9 million in in-kind loans from the South Korean government between 2002 and 2008. Under the original agreement, both sides were to finalize the repayment terms after the project’s completion. However, with North Korea’s recent actions, the South Korean government now considers further progress on the project impossible.
The high-ranking Unification Ministry official also expressed confidence in the continued strength of the South Korea-U.S. alliance.
“There is bipartisan consensus in the U.S. on the importance of the alliance,” the official said. The official added that circumstances have changed since U.S. President-elect Donald Trump’s first term, making it unlikely that Washington would engage Pyongyang unilaterally without consulting Seoul.
The Unification Ministry reiterated its commitment to addressing North Korea’s denuclearization with the United States, even amid Washington’s leadership transition.
“The government will work closely with the new U.S. administration to steadfastly pursue changes in North Korea and its denuclearization,” Vice Minister Kim Soo-kyung said.
BY SEO JI-EUN [seo.jieun1@joongang.co.kr]
