North Korea Winter Olympics optimism will soon fade

Headline NORTH KOREA: Winter Olympics optimism will soon fade

Significance In raw materials, their needs complement each other: Canberra seeks reliable markets for raw materials; Seoul has supply concerns. Although Australia is much more open about expressing concerns about China, South Korea shares many of them in private. Impacts South Korea will neither join the Quad nor boycott the Beijing Winter Olympics. Plans to cooperate on ‘green steel’, using hydrogen, may prove expensive and difficult. A formal peace treaty with North Korea is not coming any time soon, contrary to Moon's claims.


Subject Domestic politics in South Korea. Significance The unending North Korea crisis risks distracting attention from South Korea, vital in its own right as the world’s eleventh-largest economy and fifth-largest exporter. Politics in Seoul have stabilised after a fraught period leading to the impeachment last year of President Moon Jae-in’s now jailed predecessor, Park Geun-hye, but the country faces a raft of formidable challenges, old and new. Impacts With five separate centre-left parties, a more united political right will probably make gains in local elections in June. North Korea’s participation in the Winter Olympics carries risks and has in part backfired already. Seoul's key foreign relationships -- those with Washington, Pyongyang, Beijing and Tokyo -- will pull Moon in different directions.


Keyword(s):  

Headline NORTH KOREA: Kim will double down on nuclear deterrent


Keyword(s):  

Headline NORTH KOREA: Halting trade again will prevent recovery


Significance The US-led diplomatic boycott of the Winter Olympics in February will increase the pressure on US companies to decide whether China or the United States is their more valuable market. Some of that pressure to decide is coming from employees and customers in both countries. Impacts More frequent and sharper confrontations between US companies and China could accelerate the decoupling of the two economies. Renewed emphasis on human rights concerns will encourage the further shifting of some supply chain elements out of China. Consumer brands are particularly vulnerable to human rights concerns, as are their suppliers.


Significance It also benefits from policies that heavily favour the domestic arms industry. This has resulted in a well-equipped modern military and a high degree of self-reliance in equipping it. However, this model may be unsustainable. Impacts Seoul will likely attempt to expand armaments collaboration with other countries to gain additional resources, technologies and markets. China’s military modernisation is an increasing concern, including in the context of potential war with China’s ally, North Korea. Threats from North Korea make air and missile defence the top procurement priorities.


Subject The impact of recent by-elections and an ongoing corruption scandal. Significance Lee Wan-koo resigned as premier on April 21 after just two months in post. He and seven other associates of President Park Geun-hye were named in an interview and suicide note by Sung Wan-jong -- former head of a construction firm -- who hanged himself on April 9. All deny taking money from Sung, but Lee's position became untenable. In better news for Park, her Saenuri Party won three hitherto opposition-held seats in by-elections on April 29. Her approval rating as of May 1 was 39%, up four points in a week. Impacts Park's personal popularity is holding up, but this does not imply effective policy-making ahead. The main opposition, which lost all four by-elections, is in turmoil and may split. Park may try to regain popularity by easing policy toward North Korea.


Subject Japan's military space programme. Significance Japan's national space systems, particularly when linked to those of the United States, make it one of the pre-eminent military space powers regionally, if not globally. Impacts Japan's militarisation of space indicates a determination to face down threats from North Korea and China. Augmentation of Japanese space power should enhance US deterrence against China. Japan's attempt to match China's space capabilities risks an arms race in yet another dimension.


Sign in / Sign up

Export Citation Format

Share Document