South Korea reviews measures to reclaim loans to North Korea over destruction of land routes

Seoul, Nov 18 (SocialNews.XYZ) South Korea's unification ministry said Monday it is reviewing measures to reclaim loans granted to North Korea for building inter-Korean roads and train tracks after the North blew them up in October.

The unification ministry unveiled the tentative measures as part of its policy plan for the second half of President Yoon Suk Yeol's administration, which is now at the midpoint of his five-year term, Yonhap news agency reported.

On October 15, North Korea demolished parts of the roads and train tracks connected to South Korea -- the Gyeongui Line in the western border region and the Donghae Line along the east coast -- in its latest display of escalating hostility toward the South.

The unification ministry said a review is under way, in collaboration with other related ministries, to seek the collection of loans to North Korea amid concerns the country may refuse to repay them following its detonation of inter-Korean roads and train tracks.

From 2002-2008, South Korea provided in-kind loans worth $132.9 million to North Korea to construct roads and train tracks along the two inter-Korean lines.

"As the size of the loans has not been finalised due to procedural matters, the ministry is reviewing whether finalisation can be done now and whether action can be taken immediately to recover the loans without a grace period," a ministry official said.

Under the policy plan, the ministry will also seek to increase assistance to North Korean defectors, including through a revision bill, currently pending in the National Assembly, aimed at providing tax cuts to companies that employ North Korean defectors who have settled in South Korea.

Source: IANS