North Korea has decided to close its embassy in Nepal citing the financial crisis.

Kim Yong Su, the North Korean ambassador to Nepal, communicated the decision to Prime Minister Pushpa Kamal Dahal during a meeting.

The prime minister expressed sadness over the East Asian country’s decision, said Rupak Sapkota, foreign relations adviser to the prime minister.

“The prime minister thanked him for the good relations between the two countries and thanked the ambassador for contributing to strengthening the bilateral ties,” Sapkota said.

Pyongyang decided to shut its mission and relocate to New Delhi in line with its changed priority and deepening financial crisis, Sapkota added.

The Democratic People’s Republic of Korea had already communicated its decision to the Ministry of Foreign Affairs during a meeting between Foreign Secretary Bharat Raj Paudyal and Ambassador Su. After the closure, the New Delhi-based North Korean Embassy will be accredited to look after Nepal.

According to the Ministry of Foreign Affairs, Nepal and the Democratic People’s Republic of Korea (DPRK) established diplomatic relations on 15 May 1974.

The DPRK's residential embassy was established in Kathmandu the same year, according to the MoFA. The Nepali Embassy in Beijing is concurrently accredited to DPRK.

“The relations between Nepal and DPRK have remained cordial and friendly. Nepal follows the development in DPR Korea and on the Korean Peninsula with interest,” the Ministry of Foreign Affairs has said.

“Nepal has a longstanding supportive position for the peaceful reunification of Korea as per the will of the Korean people. Nepal has the earnest wish to see peace, unity and stability in the Korean Peninsula.”