[2020 National Audit] 90 Billion KRW Lost in North Korea Resource Development Investment... Only 3% Recovered

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] It has been pointed out that only 3% of the $80 million (926 billion KRW) invested in resource development in North Korea has been repaid.

On the 8th, Tae Young-ho, a member of the National Assembly's Foreign Affairs and Unification Committee from the People Power Party, cited data received from the Korea Foundation for Inter-Korean Exchange and Cooperation, pointing out that only 3% of the $80 million provided to North Korea in 2007 as part of the inter-Korean light industry and underground resource development cooperation project has been repaid.

The Korea Foundation for Inter-Korean Exchange and Cooperation was established in 2007 as an implementation organization for promoting the inter-Korean light industry and underground resource development cooperation project, with approval from the Ministry of Unification for corporate establishment, and the amount unpaid by North Korea under this project amounts to 97% of the loan principal ($77.6 million), along with 1% annual interest and 4% annual overdue interest.

However, according to the data provided by the foundation, the project has been suspended for a long period since 2008, and the foundation has not even separately prepared or managed a work manual for the project. In the past five years, there has not even been a request for an investigation into the status of cooperation on North Korean underground resources, and the foundation has been assessing the situation through overseas trips to third countries such as China, Russia, and Mongolia, which have dealings with North Korea.

Representative Tae stated, "The Korea Foundation for Inter-Korean Exchange and Cooperation should review whether it has properly fulfilled its overall role and efforts regarding the project that forms the foundation of the organization’s existence, and considering the worsening inter-Korean relations whose resolution time is uncertain, it must establish fundamental measures for loan repayment."

This content was produced with the assistance of AI translation services.