North Korea ordered to pay US$32.5m over destruction of inter-Korean liaison office

Seoul's Central District Court has ordered North Korea to pay approximately US$32.5 million to the South Korean government for the destruction of the Inter-Korean Liaison Office in 2020. This marks the first time the South Korean government has sought damages directly from the North Korean state.

The office, located in Kaesong, North Korea, was built in the dormant Kaesong Industrial Complex where South Korean companies previously employed North Korean workers. However, Pyongyang blew up the building in June 2020 after days of increasing tensions following South Korean activists sending balloons carrying anti-Pyongyang leaflets across the border.

The court ruled that North Korea should pay 44.6 billion won in damages. The lawsuit was filed in 2023 under the previous South Korean administration led by Yoon Suk Yeol, who took an aggressive stance towards North Korea.

The Inter-Korean Liaison Office opened in September 2018, just days before Moon Jae-in's third summit with North Korean leader Kim Jong Un. The office was staffed by around 20 officials from each side until its suspension in January 2020 due to the Covid-19 pandemic.

Experts believe it is unlikely that North Korea will comply with the ruling and pay the damages. They argue that the North maintains the demolition was justified in response to perceived faults by South Korea. The South Korean government hopes that the ruling will spur inter-Korean dialogue and ultimately resolve all issues between the two nations through cooperation.