On July 16, the Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”), the agency entrusted by the government to operate the Inter-Korean Cooperation Fund (IKCF), sent a letter to Chosun Trade Bank of North Korea expressing Korea Eximbank’s dismay about the unresponsiveness of Chosun Trade Bank in regards to overdue payments for a food loan provided by Korea Eximbank. In the letter, Korea Eximbank also urged for immediate payment of overdue principle and interest.

Chosun Trade Bank was first informed on May 4 that the first payment of USD 5.83 million was due on June 7. On June 8, upon confirmation that a payment had not been made, Korea Eximbank notified Chosun Trade Bank of overdue payments but Chosun Trade Bank did not respond or take actions to remedy the situation.

According to the food loan agreement, a late fee of 2.0% (annual rate) accrues from the payment due date to the actual date of payment.