Seoul court orders North Korea to pay $32.5 million for 2020 liaison office demolition
Quick Look
A Seoul court ruled that North Korea must pay over 44.6 billion won ($32.5 million) to South Korea for demolishing the inter-Korean joint liaison office in Kaesong in June 2020, marking Seoul’s first legal victory in a direct damages suit against Pyongyang, though enforcement remains uncertain.
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Why It Matters
The inter-Korean joint liaison office in Kaesong opened in September 2018 under the Panmunjom Declaration, funded by South Korea despite being located on North Korean territory. It served as a key communication channel until personnel were withdrawn in January 2020 due to COVID-19. North Korea demolished the building in June 2020 amid tensions over anti-Pyongyang leaflets.
A Seoul court ruled Wednesday that North Korea must pay the South Korean government more than 44.6 billion won ($32.5 million) for demolishing the inter-Korean joint liaison office in Kaesong in June 2020.
The ruling marked the South Korean government’s first victory in a damages suit filed directly against North Korea. How Seoul could enforce the judgment remains unclear, as there are currently no practical means of compelling Pyongyang to pay.
The Seoul Central District Court ordered North Korea to pay 44,626,410,722 won, effectively granting the government’s claim in full.
The court also ordered annual interest of 5 percent from June 16, 2020, the date of the demolition, through June 7, 2025. An annual rate of 12 percent applies from the following day until payment is made in full.
The plaintiff and defendant were formally listed as the Republic of Korea and the Democratic People’s Republic of Korea, respectively.
The liaison office opened in September 2018 under the Panmunjom Declaration signed that April by then-South Korean President Moon Jae-in and North Korean leader Kim Jong-un.
Although the site was on North Korean territory, the South Korean government funded its construction in 2007. The building initially housed an inter-Korean economic cooperation office and served as a venue for talks before being converted into the liaison office.
After opening, it served as a key channel for inter-Korean communication and exchanges. Regular meetings between officials from both sides were suspended following the collapse of the second US-North Korea summit in Hanoi, Vietnam, in February 2019, which ended without an agreement.
South Korea withdrew its personnel from the office in January 2020 amid the COVID-19 pandemic.
North Korea blew up the building on June 16, 2020, as tensions escalated over anti-Pyongyang leaflets sent across the border by North Korean defector groups in South Korea. The explosion also damaged an adjacent support center.
The South Korean government filed the suit in June 2023 — shortly before the three-year statute of limitations was due to expire — seeking to preserve its right to compensation.
The Unification Ministry estimated the damage to state-owned property at 44.7 billion won, comprising 10.25 billion won for the liaison office and 34.45 billion won for the adjacent support center.
The case initially stalled because court documents could not be delivered to North Korea. In December 2024, the court approved the government’s request to serve the documents by public notice, allowing proceedings to begin.
Courts use service by public notice when a party cannot or will not receive documents. The court publicly posts the documents, and they are deemed legally delivered after a specified period.
Open Questions
- How will South Korea enforce the judgment against North Korea?
- Will North Korea respond to the ruling with further provocations?
- Could this ruling lead to additional legal actions by South Korea?
- What impact will this have on future inter-Korean dialogue?
