South Korean Court Orders North Korea to Pay $32.5M

Shanya Salar 3 hours ago
This photo provided by the North Korean government shows the demolition of an inter-Korean liaison office building in Kaesong, North Korea on June 16, 2020. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. Korean language watermark on image as provided by source reads: "KCNA" which is the abbreviation for Korean Central News Agency. (Korean Central News Agency/Korea News Service via AP, File)
This photo provided by the North Korean government shows the demolition of an inter-Korean liaison office building in Kaesong, North Korea on June 16, 2020. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. Korean language watermark on image as provided by source reads: "KCNA" which is the abbreviation for Korean Central News Agency. (Korean Central News Agency/Korea News Service via AP, File)

At a Glance

  • A Seoul court ordered North Korea to pay 44.6 billion won over the 2020 destruction of a liaison office.
  • The ruling covers damage to the office and an adjacent support facility in Kaesong.
  • South Korea has no clear mechanism to force Pyongyang to make the payment.
  • Seoul used the ruling to call for renewed inter-Korean dialogue.

A South Korean court has ordered North Korea to compensate Seoul for the 2020 destruction of an inter-Korean liaison office, in a case highlighting the continuing breakdown in relations between the two sides.


Key Statements and Focus Area

  • South Korean government: “The ministry hopes that inter-Korean dialogue resumes, and the two Koreas can resolve all pending issues through dialogue.” — South Korea’s Unification Ministry.
  • Court ruling: The Seoul Central District Court ordered North Korea to pay 44,626,410,722 won, effectively granting the full amount sought by South Korea.
  • Enforcement: South Korea currently has no clear means of forcing North Korea to pay the compensation.

Seoul Wins First Government Lawsuit Against Pyongyang

The Seoul Central District Court issued the ruling Wednesday, more than three years after South Korea filed its lawsuit against North Korea.

The case was the first time the South Korean government had taken legal action against Pyongyang. The court proceedings took place without a representative from North Korea.

South Korea sought compensation for the destruction of the liaison office and damage to an adjacent support facility. The government estimated the damage at 10.25 billion won for the office itself, and 34.45 billion won for the support facility.

Liaison Office Destroyed in 2020

The two Koreas opened the liaison office in Kaesong in September 2018 during a period of improved inter-Korean relations. It was suspended in January 2020 amid North Korea’s border restrictions over COVID-19.

North Korea later demolished the building with explosives on June 16, 2020, after criticizing Seoul over the failure to prevent activists from sending anti-Pyongyang leaflets across the border. The building was empty when it was destroyed.

Payment Remains Difficult to Enforce

Despite the court ruling, South Korea faces practical difficulties in collecting the compensation because it has no established means of compelling Pyongyang to make the payment. Previous civil cases involving North Korea have faced similar enforcement problems.

South Korea’s Unification Ministry said it respects the ruling and will pursue necessary measures. North Korean state media had not immediately commented on the decision.

FYI

The destruction of the liaison office followed the collapse of US-North Korean nuclear diplomacy after the 2019 summit between North Korean leader Kim Jong Un and then-US President Donald Trump. Earlier negotiations had involved South Korean efforts under former President Moon Jae-in to facilitate dialogue between Washington and Pyongyang.

Since then, North Korea has halted meaningful engagement with Seoul, expanded its nuclear and missile programs, and strengthened ties with Russia and China. Current South Korean President Lee Jae Myung has sought renewed dialogue, but Pyongyang has so far not responded positively.

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