On September 27, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”), the trustee of the Inter-Korean Cooperation Fund, urged North Korea’s Chosun Trade Bank to repay the overdue principal on an IKCF food loan as soon as possible.

Korea Eximbank had already notified to the North Korean bank in May 4 the repayment date (June 7, 2012) of the principal on the food loan. On June 8, immediately upon confirming Chosun Trade Bank’s default, Korea Eximbank pressed its counterpart to repay the principal overdue. Then on July 16, the bank urged Chosun Trade Bank once again to fulfill its obligation, to which the latter has not yet given any response.

The overdue payment notice given this time is the third following those in June 8 and July 16. A late payment interest of 2.0% per year will accrue to the amount overdue from the original payment date until the day before the actual payment, according to the terms and conditions of the food loan agreement.