Strange but true: North Korea owes Sweden millions for Volvos from the 1970s


Strange but true: North Korea owes Sweden millions for Volvos from the 1970s
Pyongyang still owes Sweden a lot of money. Photo: Wong Maye-E/AP
By: Lee Rodan/The Local
You’re not going to believe this one…

Odd stories and Sweden are no strangers, but the tale of how North Korea owes the Scandinavian nation millions in unpaid bills for items including a thousand Volvos from the 1970s is definitely one of the weirdest of all.

The story goes that back in the mid-1970s the Swedish government saw the potential to trade with North Korea, and companies like Sandvik, SKF and car giant Volvo were encouraged to court it as a new export market, off the back of the Asian country’s economic strength in the 1960s.

Volvo received an order for 1,000 of its 144 model and promptly started shipping the cars out to North Korea in 1974. But it very quickly became apparent that Pyongyang was not paying for the goods that had been shipped.

In fact, they never did, and the debts have stood ever since. Adjusted for inflation, they now amount to the equivalent of millions of dollars.

The Local thought the story (which was recently flagged up by SVT’s På Spåret show) had to be an urban myth, but Sweden’s National Export Credits Guarantee Board (EKN) has confirmed that it’s 100 percent true.

The authority, which promotes Swedish exports by insuring export credits, are now the ones owed the money.

“It’s true, it’s still the case. The debt now amounts to just over 2.719 billion Swedish kronor ($302 million),” Carina Kampe from EKN told The Local.

“At the time EKN insured the companies’ export credit, and when North Korea didn’t pay, EKN had to pay out to the export companies under the credit insurance. So after that, EKN took over the claim, and with the passing of the years the debt as grown,” she added.

Even though it looks unlikely that Kim Jong-un will cough up the cash any time soon, as a formality EKN still has to ask for the bill to be paid every year, as it does with all debts on its books.

“How it works is we have this claim, and like all claims we have, it’s on EKN’s books, so we continue to ask for it to be paid,” Kampe noted.

“People have even claimed to have seen the cars driving in North Korea nowadays, even though the last ones were sent in the 1970s. That’s why they’re still getting publicity.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s