Court orders N. Korea to pay S. Korea 44.6 bln won over 2020 demolition of liaison office

Seoul's Central District Court declared on September 16 that North Korea is financially responsible for compensating South Korea approximately 44.6 billion won (USD 32.5 million) for the 2020 demolition of an inter-Korean liaison office in Kaesong, a border town in North Korea. This ruling comes three years and three months after the South Korean government initiated legal proceedings against Pyongyang.

The liaison office, established in September 2018, aimed to promote inter-Korean exchange and cooperation after warm relations were sparked by the leaders' April summit talks. However, due to the COVID-19 pandemic, the office ceased operations in January 2020. The North Korean regime's decision to destroy the joint building on June 16, 2020, was a response to Seoul's inability to prevent North Korean defectors from distributing anti-Pyongyang leaflets across the border.

North Korea's demolition of the liaison office building incurred a direct loss of 10.25 billion won, while an adjacent support facility sustained serious damage, amounting to an additional 34.45 billion won. The Seoul Central District Court ruled in favor of the South Korean government's claim, granting the full amount stipulated. Notably, no North Korean representatives were present during the proceedings.

Despite the court's decision, collecting the compensation may prove challenging for South Korea, as it has never been able to compel the North to make such payments in previous civil lawsuits. The legal system in Pyongyang does not allow for the enforcement of such obligations, leaving the South Korean government without any means to ensure the collection of the awarded compensation.