Seoul: The South Korean unification ministry announced on Monday that it is reviewing measures to reclaim loans given to North Korea for infrastructure projects after the recent destruction of inter-Korean roads and train tracks by the North. According to Yonhap News Agency, the ministry has unveiled tentative measures as part of its policy plan for the second half of President Yoon Suk Yeol's administration. This plan comes as the administration reaches the midpoint of its five-year term. The demolition, which took place on October 15, saw North Korea destroy sections of the Gyeongui Line in the western border region and the Donghae Line along the east coast, marking a significant escalation in hostilities. The unification ministry is collaborating with other related ministries to explore options for reclaiming the loans, amid concerns that North Korea may refuse repayment following its recent actions. Between 2002 and 2008, South Korea provided in-kind loans totaling US$132.9 million to North Korea for th e construction of roads and train tracks along these two lines. A ministry official stated that the review includes determining whether the finalization of loan sizes, which has been delayed due to procedural issues, can be completed now. The goal is to assess whether actions can be taken immediately to recover the loans without a grace period. Additionally, the policy plan includes measures to increase support for North Korean defectors. This includes a revision bill, currently pending in the National Assembly, which aims to provide tax incentives to companies employing North Korean defectors who have resettled in South Korea.
S. Korea Reviews Measures to Reclaim Loans to N. Korea Over Destruction of Land Routes.
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