A Seoul court on Wednesday ordered North Korea to pay roughly US$32.5 million (44.6 billion won) in damages for the 2020 destruction of the inter-Korean liaison office in the border town of Kaesong, according to Yonhap news agency.

The Seoul Central District Court ruled in favour of the South Korean government, effectively granting the full 44,626,410,722 won sought by the plaintiff, Yonhap reported. The court also ordered North Korea to bear the litigation costs, as reported by multiple outlets. The court did not provide specific reasons for its ruling, Yonhap added.

The lawsuit marked the first time the South Korean government has sought damages directly from the North Korean state, according to media reports. The case was filed in June 2023 by the previous conservative government led by then-President Yoon Suk Yeol, before his ouster following his December 2024 martial law declaration.

Background of the liaison office

The liaison office was opened in September 2018 under the Panmunjom Declaration to serve as a round-the-clock communication and consultation channel between the two Koreas. It was constructed in the dormant Kaesong Industrial Complex, where South Korean companies once employed North Korean workers. Around 20 officials from each side were stationed there until operations were suspended in January 2020 due to the COVID-19 pandemic.

North Korea blew up the building on June 16, 2020, after days of rising tensions caused by South Korean activists sending balloons carrying anti-Pyongyang leaflets across the border. The North denounced the office as "useless" and cited the leaflet campaign as its reason. Immediately after the blast, the South Korean government placed all responsibility on the North, saying the demolition was "clearly illegal under the law" and filing the suit to suspend the statute of limitations.

Reactions and prospects

Seoul's Unification Ministry said it respected the ruling and would review necessary follow-up measures. The ministry also said it hoped inter-Korean dialogue would resume so that all issues between the two Koreas could be resolved through dialogue and cooperation.

Hong Min, a senior researcher at the Korea Institute for National Unification, told AFP that "it is simply impossible for the North to accept the responsibility and pay the damages," adding that the North maintains the demolition was justified and taken in response to faults by the South.

Media reports said Pyongyang was unlikely to respond to the suit and that Seoul had no means to force payment. The court proceedings took place without any representative of North Korea, Yonhap reported. The court and North Korea's embassy in Beijing did not immediately respond to requests for comment.