The joint liaison office was established as part of Panmunjom Declaration signed by North Korean leader Kim Jong-un and South Korean President Moon Jae-in on 27 April 2018, during the 2018 inter-Korean Summit in Panmunjom. The office was located in a four-story and a basement building with an area of 4498.57m2 constructed in 2005 for the Inter-Korean Exchange and Cooperation Consultation Office. The construction cost at the time was 8.0 billion KRW ($7.1 million) paid by the South Korean government. On 11 October 2018, it was reported that a water treatment plant which will be used by the Inter-Korean Liaison Office had been restored. By 25 October 2018, renovation and repairs to the building which houses the Inter-Korean Liaison Office were complete. The South Korean government spent 9.7 billion KRW ($8.6 million) on these renovations.