North Korea Aid to Be Paid Back?
Bahk Byong-won, the chief negotiator for inter-Korean economic cooperation, said on Tuesday that economic aid to the North was not free and that Seoul had clearly sent that message in previous meetings between the two Koreas.
Speaking at a forum sponsored by the JoongAng Ilbo and the Hyundai Research Institute, Mr. Bahk, vice minister of finance, said, “Until now, aid to the North was done considering the inability of the North’s economy to pay back.”
After economic talks on Jeju Island, both Koreas agreed Seoul would provide $80 million worth of materials to manufacture much-needed garments, shoes and soaps to the North in exchange for 2.4 billion won ($2.4 million) worth of zinc and magnesite as an immediate 3 percent return for the donated materials. The rest is will be paid back over 10 years, after a 5-year grace period, at a low annual interest rate of 1 percent.
