The South Korean government has asked North Korea to repay a loan from 2007 worth 80 billion won.

The Korea Exim Bank extended the loan in the form of raw materials for North Korea's light manufacturing industry. 

A Unification Ministry official said it notified North Korea's Joseon Trading Bank to make the first payment of eight-point-six million U.S. dollars by March 24th. 

Over the next ten years, North Korea has to pay back the principle and the interest of around 86 million dollars on installment.

In 2007, the Seoul government provided North Korea with raw materials for the production of shoes and soap under a ten-year repayment plan with a five-year grace period.

In 2008, North Korea paid back three percent of the principle and promised to repay in forms of development rights and underground resources.

Seoul predicts North Korea will unlikely comply with its demand for repayment citing the North's track record of failing to pay back food loans.