South Korea Wins First Damages Judgment Against North Korea Over 2020 Liaison Office Demolition

On September 16, the Seoul Central District Court ordered the Democratic People’s Republic of Korea (North Korea) to pay 44.6 billion won (about US$32.5 million) to the Republic of Korea (South Korea) for the destruction of the Inter-Korean Liaison Office in Kaesong. The court also required North Korea to cover litigation costs and to pay statutory interest—5 % per annum from the demolition date (16 June 2020) to 7 June 2025, rising to 12 % thereafter. The ruling marks the first instance in which the South Korean government successfully sued the North in a civil damages case.

UsNews and World ReportNorth Korea ordered to pay $32.5m over liaison office bombing Court Rules North Korea Must Pay South Korean Government Over 44.6 Billion Won for Blowing Up Joint Liaison Office Channel News Asia - CNACourt orders North Korea to pay $32.5m over 2020 demolition South Korean Court Orders North Korea to Pay Damages South Korean court orders North Korea to pay $32.5 million for blowing up joint liaison office The Straits Times

The liaison office was built in the Kaesong Industrial Complex as part of the 2018 Panmunjom Declaration, which pledged a round-the-clock communication channel between the two Koreas. It opened in September 2018 and housed roughly 20 officials from each side. Operations were suspended in January 2020 because of the COVID-19 pandemic, leaving the building empty. On 16 June 2020, North Korea detonated explosives that destroyed the structure, citing “propaganda leaflets” launched from balloons by South Korean defectors as the provocation. The demolition was widely interpreted as a retaliatory display amid stalled nuclear talks with the United States.

UsNews and World Report

• Total damages awarded: 44.6 billion won.

North Korea ordered to pay $32.5m over liaison office bombing

• Breakdown (South Korean estimate): 10.25 billion won for the liaison office building and 34.45 billion won for the adjacent Kaesong Industrial Complex Support Centre.

Court orders North Korea to pay $32.5m over 2020 demolition

• Interest: 5 % annually from 16 June 2020 to 7 June 2025; 12 % thereafter until payment.

Court orders North Korea to pay $32.5m over 2020 demolition

These figures were calculated by the Ministry of Unification, which filed the suit in June 2023 to prevent the statutory limitation period from expiring.

Court Rules North Korea Must Pay South Korean Government Over 44.6 Billion Won for Blowing Up Joint Liaison Office

The Ministry of Unification said it respects the court’s judgment and will review necessary measures. It emphasized that the ruling is intended to preserve the state’s claim and to encourage a resumption of inter-Korean dialogue so that broader issues can be addressed through cooperation.

Gov't Calls to "Resolve Through Dialogue" Following Court Ruling on North Korea's Demolition of Liaison Office

• “Let us put down our intentions to threaten each other and begin discussions to end the long-running war as the directly involved parties,” — Mr Lee, South Korean President

The Independent

• “It is simply impossible for the North to accept the responsibility and pay the damages,” — Hong Min, senior researcher at the Korea Institute for National Unification

The Straits Times

• “We hope inter-Korean dialogue will resume so that all inter-Korean issues can be resolved through dialogue and cooperation.” — the government

Gov't Calls to "Resolve Through Dialogue" Following Court Ruling on North Korea's Demolition of Liaison Office

• “The government respects the court's judgment and will review necessary measures,” — Ministry

Gov't Calls to "Resolve Through Dialogue" Following Court Ruling on North Korea's Demolition of Liaison Office

• “The main purpose of the government filing the lawsuit was to prevent the statute of limitations on the claim from expiring and to preserve state claims, and that purpose was achieved with the ruling in our favor,” — Ministry

Gov't Calls to "Resolve Through Dialogue" Following Court Ruling on North Korea's Demolition of Liaison Office