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The Debt That Time Forgot: Why North Korea Still Hasn’t Repaid South Korea

  • Writer: Dogeon Lim
    Dogeon Lim
  • Oct 16
  • 2 min read

Oct 17, 2025

Dogeon Lim



The South Korean government has failed to get approximately 885.3 billion Korean won (620.2 million dollars) from North Korean unpaid loans as of the 13th. Even so, the Export-Import Bank of Korea has already sent over 100 reminders to the North Korean government since the initial early repayment deadline in June 2012. North Korea didn’t leave any response for this.

Opposition parties criticised that “All the unpaid money to North Korea is taxpayer’s money. There should be strong action, including seizing North Korea’s overseas assets.


According to the data by the office of People Power Party Rep. Park Sung-hoon by the Export-Import Bank of Korea, North Korea’s unpaid loans including delayed compensation fees, already reached 885.3 billion won last August. The total loans, 932.9 million dollars (1.3318 trillion won), were borrowed by North Korea between 2000 and 2007 during the Kim Dae-jung and Roh Moo-hyun administrations.


The loans included $720 million (₩1.28 trillion) for food, $132.9 million (₩189.7 billion) for materials and equipment, and $80 million (₩114.2 billion) for light-industry raw materials. Each had a 5–10 year grace period and a 15–30 year repayment period, requiring both principal and interest payments after maturity.


However, North Korea has not made any repayments, except for two in-kind payments in zinc ingots worth $1.204 million in December 2007 and $1.196 million in January 2008.


Including ₩3.3013 trillion in unpaid principal and interest from the KEDO (Korean Peninsula Energy Development Organization) nuclear reactor project, the total debt owed to South Korea is even greater.


Since 2012, South Korea’s Export-Import Bank has sent more than 100 reminders to Pyongyang’s Foreign Trade Bank but received no reply. The issue remains a lasting symbol of stalled economic cooperation between the two Koreas.



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