South Korean Court Orders North Korea to Pay $32.5 Million

The Seoul Central District Court ruled on Wednesday that North Korea must pay the South Korean government approximately 44.6 billion won ($32.5 million) in damages. The ruling follows a lawsuit filed in June 2023 by the previous conservative government under former President Yoon Suk Yeol to prevent the statute of limitations from expiring.

The compensation is for the June 16, 2020, demolition of an inter-Korean joint liaison office and an adjacent support center in Kaesong. North Korea used explosives to destroy the facilities, which had been established under the 2018 Panmunjom Declaration to facilitate communication. Pyongyang carried out the attack in protest of South Korean failure to stop defectors from sending anti-Pyongyang propaganda leaflets across the border.

This decision marks the first time the South Korean government has successfully won a damages suit filed directly against North Korea. The court granted the claim in full and ordered annual interest ranging from 5% to 12%.

The Ministry of Unification of South Korea stated it respects the ruling, though legal experts note that Seoul has no practical means of compelling Pyongyang to make the payment. The ruling comes during a period of diplomatic breakdown; North Korean leader Kim Jong Un has characterized South Korea as a hostile state and rejected recent efforts by President Lee Jae Myung to improve inter-Korean ties.