In a peculiar chapter of international trade, North Korea finds itself in an unusual dispute with Sweden over an unpaid debt for 1,000 Volvo cars ordered in the 1970s. What began as a $73 million economic development plan has spiraled into a nearly five-decade-long financial saga, with the total debt accumulating to approximately $330 million.
Back in 1974, North Korea placed an order for 1,000 Volvo 144 models and additional mechanical equipment from Swedish companies, aiming to expand its access to foreign capital and technology. The country pledged to pay its creditors through future production or mining products. However, it became evident over time that the North Korean regime had no intentions of honoring its financial obligations.
Despite the passage of time, the unpaid debt continues to be a thorn in diplomatic relations, especially considering the complex nature of interactions with North Korea. The internet has revived interest in this unusual transaction, with images of the Volvo cars and the staggering debt circulating online.
Even more astonishing is the fact that North Korea still utilizes these cars, often for special purposes. The Swedish Embassy tweeted in 2016, “Still going strong. One of the Volvo’s from 1974 is still unpaid for by DPRK. Run as a taxi in Chongjin.”
According to a report by NPR, US journalist Urban Lehner experienced a ride in a speeding Volvo 144 sedan during his 1989 trip to North Korea. These cars, remnants of a decades-old deal, continue to serve various roles in the country, showcasing the enduring legacy of an unpaid debt that has captured the fascination of the online community.
Sources By Agencies
