North Korean hacking endangers South Korean security

Headline NORTH KOREA: Hacking endangers South Korean security

Significance The message was conveyed by a South Korean delegation in Washington, briefing Trump on its talks earlier this week in Pyongyang. North Korea had said, the delegation reported, that it is “committed to denuclearisation” if regime security is not at risk. This follows months of escalating friction between North Korea and the international community that has seen Pyongyang ramp up its intercontinental missile and nuclear testing. Impacts The risk of confrontation on the Korean Peninsula could be reduced while talks are being prepared. Trump may relax his hawkish trade policy in the interim, to avoid alienating partners he needs in managing Pyongyang, including Beijing. A successful Trump-Kim meeting could gain South Korea’s president political benefits. If significant moves towards denuclearisation did occur, Trump’s administration might revise its pro-nuclear defence strategy. Any sanctions relief could be politically beneficial to the Pyongyang regime, but too much opening up could undermine it.


Significance This followed Pyongyang’s breach of its 17-month moratorium on missile testing with two volleys on May 4 and May 9, each personally supervised by Kim and both including short-range ballistic missile launches. Impacts Kim has given Washington until the end of the year to rethink its stance; that is possible but unlikely. Pyongyang’s new missile may be able to penetrate South Korean missile defences. South Korea will persevere with cooperation efforts for now, despite Pyongyang’s rebuffs.


Significance Seoul anticipates a North Korean delegation of 400-500 people, including not only athletes but also reporters, observers and officials. Impacts Pyongyang's Olympic olive branch is a major tactical change, but it is premature to see it as a strategic shift. Military talks will address the cross-border security implications of Pyongyang joining the Games, but probably not broader issues. South Korea's president will try to extend the Olympic thaw into other spheres, but wider engagement will prove tricky. The US president is supportive, claiming credit for the breakthrough, but Washington may see further South Korean concessions as excessive.


Subject North Korean and South Korean responses to the COVID-19 coronavirus outbreak. Significance Pyongyang and Seoul have each responded strongly to the COVID-19 coronavirus outbreak that began in Wuhan, China, in December -- but in sharply contrasting ways that highlight their very different systems and capacities. Impacts Claims that the virus has not entered North Korea are highly suspect; its extent may never be known unless it becomes too large to disguise. Living standards in North Korea will fall if restrictions on trade and travel remain, breeding resentment and undermining regime legitimacy. Failure to contain the virus or its economic impact will hurt President Moon Jae-in’s party in South Korean legislative elections in April.


Headline NORTH KOREA/SOUTH KOREA: Balloon ban may improve ties


Significance No warning was given to shipping. With rare speed, owing to Chinese fury at the timing of this during the G20 summit in Hangzhou, the next day the UN Security Council (UNSC) condemned Pyongyang's "flagrant disregard" of past UNSC resolutions. With no sign that Kim Jong-un will heed this latest UN rebuke any more than previous ones, the current Western and global hard line towards North Korea is having no visible impact. Impacts North-South relations will probably remain abysmal till then, though opportunistic U-turns by either Korea cannot be entirely ruled out. Chinese enforcement of sanctions will remain patchy, especially given Beijing's hostility to US missile deployment in South Korea. Regular deployment of SLBMs by Pyongyang would be a game-changer for the region. South Korean predictions of regime collapse are premature.


Significance Japan’s Foreign Minister Taro Kono called the ruling “totally unacceptable” and warned that Tokyo is considering “every option”. South Korean Prime Minister Lee Nak-yon said he respects the judgement, while expressing his hope for “future-oriented” relations with Japan. Impacts This will worsen an already rancorous bilateral relationship, on top of long-running disputes over territory and other historical issues. It will become harder for these neighbours to find common ground on North Korea and the Trump administration's unpredictability. With bilateral ties warming after a recent summit, China will not currently endorse any similar historical claims against Japan.


Significance While Russia worries about the risk of instability triggered by a strict sanctions regime, its role in the North Korea crisis is limited to supporting China's calls for restraint on all sides. It has supported previous UN sanctions but is against US proposals for tougher action, partly because it insists the July 4 test was of an intermediate-range rather than intercontinental ballistic missile. Impacts Moscow will support the current UN sanctions regime while trying to block expansion and occasionally flouting the rules. South Korean automotive and hi-tech investment is more likely in European Russia than eastern Russia. Russia has neither the will nor the ability to keep North Korea provided with essential goods.


Significance It resulted in a short (400-word) joint statement that contained no new specific pledges. It did not contain Trump's surprise announcements in the ensuing press conference that "we will be stopping the war games" and "I want to get our soldiers out". Trump also said North Korea "is already destroying a major missile engine testing site"; this too was not in the document. Impacts South Korean conservatives will strongly oppose Trump's 'war games' pledge, seeing it as a threat to national security. The summit's outcome will cause anxiety in Tokyo; neither of Japan's two main concerns (abductees and short-range missiles) were addressed. China has gained; Trump's military moves are de facto acceptance of its 'freeze for freeze' proposal.


Subject South Korea's international relationships. Significance South Korea’s government is celebrating the success of its response to COVID-19, but the country’s four key foreign relationships all face difficulties -- those with the United States, China, Japan and North Korea. No other countries or regions are vital to Seoul, despite vaunted ‘Southern’ and ‘Northern’ initiatives. Impacts A prolonged deadlock on funding the US military presence in South Korea could push Seoul closer to Beijing. If President Xi Jinping visits South Korea later this year, Washington could easily misread this. Substantial fence-mending with Japan may have to await new leaderships in both countries. South Korean President Moon Jae-in may have tacitly given up on North Korea, which has visibly given up on him.


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