Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Russia Fails to Pay Back $200M Loan to South Korea, Citing War Challenges

Daniel Kim Views  

As the Russia-Ukraine war continues, delays in Russia’s repayment of economic cooperation loans to South Korea have surfaced.

According to the data reviewed by South Korea’s Democratic Party lawmaker Ahn Do Geol) from the National Assembly’s Planning and Finance Committee, South Korea is experiencing delays in recovering approximately 280 billion KRW ($203 million) that Russia owes in economic cooperation. The Ministry of Economy and Finance and the Korea Export-Import Bank submitted the data.

The origins of these loans date back to 1991, when, under President Roh Tae Woo’s administration, South Korea provided $1.47 billion in loans to Russia as part of its Northern Policy’s “Bear Project.” However, repayment of this debt has faced repeated delays over the years.

In 2003, the South Korean and Russian governments reached a debt restructuring agreement in which Russia committed to repaying $1.58 billion. Despite this arrangement, the outstanding amount of approximately 280 billion KRW has been overdue since June of this year.

Russia had pledged to repay the remaining debt by December 2024, agreeing to make biannual payments of $35 million on June 1 and December 1, with interest calculated at LIBOR plus 0.5%. However, due to the invasion of Ukraine and the resulting international sanctions, Russia is now finding it difficult to transfer funds in U.S. dollars, which has led to further delays. Consequently, principal and interest payments totaling about 160 billion KRW ($120 million), due last year and earlier this year, remain unpaid.

Ahn expressed concern, stating, “Given the prolonged Russia-Ukraine war and the likelihood of intensified international sanctions, resolving the repayment issue will not be easy.” The South Korean government is urging repayment through diplomatic letters and practical discussions with the Russian side and plans to continue negotiations via diplomatic channels.

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[WORLD] Latest Stories

  • Sweden Boosts Surveillance in Baltic Sea: Troops, Warships, and Aircraft to Monitor Threats
  • Africa's MPOX Variant Clade 1b Reaches France: Health Officials Take Action
  • LA Wildfires’ Economic Toll Hits $50 Billion, Doubling Early Estimates
  • Real Reason Trump Wants Greenland and the Panama Canal: Geopolitical Dominance
  • Kremlin Watches Trump's Greenland Acquisition Plans as Tensions Rise
  • Biden Targets China, Russia with New Semiconductor Export Limits

You May Also Like

  • 1
    Stop These 4 Harmful Morning Habits for Better Health

    LIFESTYLE 

  • 2
    6 Fiber-Rich Foods That Will Help You Stay Healthy and Full

    LIFESTYLE 

  • 3
    Want to Lose Weight? Drinking More Water Might Be the Key

    LIFESTYLE 

  • 4
    Why Your Brain’s Reward System Might Be Behind Gambling and Drinking Problems

    LIFESTYLE 

  • 5
    Hearing Loss Isn’t Just a Part of Aging—It Can Affect Your Brain

    LIFESTYLE 

Popular Now

  • 1
    How to Eat Protein the Healthy Way: Balancing Animal and Plant-Based Sources

    LIFESTYLE 

  • 2
    Is the Three-Second Rule Real? Here’s What Science Says

    LIFESTYLE 

  • 3
    Red, Black, or White Stool? What Your Bowel Movements Might Be Trying to Tell You

    LIFESTYLE 

  • 4
    Can Cutting Calories Help You Live Longer? Here’s What You Need to Know

    LIFESTYLE 

  • 5
    Why Winter Makes You Pee More (and How to Protect Your Bladder)

    LIFESTYLE 

Must-Reads

  • 1
    Stop These 4 Harmful Morning Habits for Better Health

    LIFESTYLE 

  • 2
    6 Fiber-Rich Foods That Will Help You Stay Healthy and Full

    LIFESTYLE 

  • 3
    Want to Lose Weight? Drinking More Water Might Be the Key

    LIFESTYLE 

  • 4
    Why Your Brain’s Reward System Might Be Behind Gambling and Drinking Problems

    LIFESTYLE 

  • 5
    Hearing Loss Isn’t Just a Part of Aging—It Can Affect Your Brain

    LIFESTYLE 

Popular Now

  • 1
    How to Eat Protein the Healthy Way: Balancing Animal and Plant-Based Sources

    LIFESTYLE 

  • 2
    Is the Three-Second Rule Real? Here’s What Science Says

    LIFESTYLE 

  • 3
    Red, Black, or White Stool? What Your Bowel Movements Might Be Trying to Tell You

    LIFESTYLE 

  • 4
    Can Cutting Calories Help You Live Longer? Here’s What You Need to Know

    LIFESTYLE 

  • 5
    Why Winter Makes You Pee More (and How to Protect Your Bladder)

    LIFESTYLE 

Share it on...