South Korea did not violate international sanctions by repairing and remodeling the recently launched inter-Korean liaison office in North Korea, a Unification Ministry official said Thursday.

Around 10 billion won ($8.8 million) from the Seoul government’s South-North cooperation fund was used in repairing and remodeling buildings and facilities for the liaison office that opened in the border town of Kaesong last month to bolster cross-border communication, according to an earlier report from the Ministry of Unification. 

The move, however, fueled controversy surrounding the cost of the repairs, with the ministry announcing it after relevant construction was completed. The amount was also much greater than the approximately 86 million won it had announced in July for the project.

“(The spending) does not violate any UN Security Council sanctions since it is intended to provide convenience to our operations and our people at the liaison office,” the official told reporters on condition of anonymity. “(The facilities) are also our own.”

The official explained that the total had unexpectedly skyrocketed over higher-than-expected costs for labor and materials required for construction in the North, where necessary infrastructure was unavailable. The labor force consisted of South Korean workers.

The ministry official added that the initial projection was drawn up hastily in consideration of the urgency and importance of launching the liaison office as soon as possible.

“It is far from the truth that (we) have attempted to cover up anything from the start,” he said.

President Moon Jae-in and North Korean leader Kim Jong-un in April agreed to open a liaison office in Kaesong to foster cross-border exchanges and contact between their governments and private sectors. The two Koreas held subsequent talks in June to open the office at an early date.

By Jung Min-kyung (mkjung@heraldcorp.com)