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11. North Korea's Strategy in 2018

Author:
Korea Economic Institute of America
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
What does North Korea seek at a time of unprecedented sanctions and pressure against it and suddenly developing opportunity, as South Korea and four great powers explore diplomatic overtures? This set of four chapters completed at the height of anticipation for summits in 2018 approaches Pyongyang’s strategy from diverse angles: public relations—how it is striving to shape images of itself, beginning by taking advantage of the Pyeongchang Winter Olympics; diplomacy—how it is engaging one state after another to forge an ideal diplomatic environment for securing maximum concessions; economy— how it is coping with sanctions and preparing to realize byungjin by boosting the economic side while deriving credit from the military side; and military—how it continues to develop threat capacities and prepare for contingencies. There is a lot that is unknown about what is driving Kim Jong-un’s behavior with some accentuating the strength achieved by building his threat capacity and others emphasizing the weakness exposed by draconian sanctions. These chapters explore the drivers behind his moves through the lens of strategic objectives, recognizing that the North Korean leader sees a mix of opportunities. This volume covers well into the spring of 2018—including the New Year’s Day address by Kim Jong-un that opened the door to a public relations blitz, the delegations sent to South Korea to kick-start “smile diplomacy” against the backdrop of the Winter Olympic Games, the personal diplomacy by Kim with South Korean officials followed by his outreach to Donald Trump and then a hurried visit to Beijing to meet Xi Jinping, and finally the Panmunjom summit with Moon Jae-in in the last week of April. This whirlwind of public relations and diplomacy against diverse interpretations of their economic and military background captured the world’s attention. Yet, Kim’s strategic intentions largely remain a mystery. Does he expect to retain his missiles and nuclear weapons and be recognized as one of the nuclear powers on essentially equal footing with the world’s great military powers? Does he seek to cut a grand bargain, eliminating these threatening weapons in return for acceptance in the international community with guarantees of security and bountiful economic assistance? Is Kim Jong-un playing a multi-stage game with long-term objectives hidden as he capitalizes on differences among five countries to maneuver in ways still difficult to fathom? Much remains unknown, as we delve into his strategic choices.
Topic:
Diplomacy, Nuclear Weapons, Military Affairs, and Grand Strategy
Political Geography:
South Korea and North Korea

12. Advancing East Asia’s Trade Agenda: A Korean Perspective

Author:
Kijm Sangkyom
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
According to the WTO, in 2018 there are 459 regional trade agreements, the most in the institution’s recorded history.1 Countries are now more actively engaged in regional trade agreements as a policy option to achieve their outward growth strategy. In addition to efforts to build up trade and investment links, regional integration is expected to spill over to more complicated socioeconomic issues, covering a wide range of areas such as gender, environment, labor, and cultural exchanges. Given this upsurge, policy coordination within the framework of regional agreements has attracted considerable attention from policymakers and other stakeholders. This is certainly the case in Korea, where the promise of such agreements is widely recognized, and recent challenges are actively discussed in the hope of overcoming them. Regionalism is a relatively new concept for most East Asian countries.2 Through most of the 1990s, East Asian countries generally engaged in regional integration discussions as a pathway to eventual multilateral trade liberalization under the auspices of the ASEAN and ASEAN+ processes. The subsequent proliferation of FTAs was the result of a number of economic and political factors, which had much in common with similar processes in other world regions, but advanced with particular intensity in East Asia and states closely connected to it. Today, all Asia-Pacific economies are involved in the regional economic process and are active participants in the establishment of multilayered FTAs. The growing interdependence and interconnectedness of the global economy has intensified the need for most East Asian countries, including Korea, to engage in regional economic cooperation and integration. Korea’s high dependency on trade explains its preference for the rapid expansion of regional trade agreements. This chapter begins with a review of the trends, key characteristics, and implications of East Asian economic integration, followed by an examination of potential opportunities and challenges facing regional integration. Korea’s FTA strategies are then reviewed, and its expected role in advancing the regional trade agenda is addressed.
Topic:
Regional Cooperation, World Trade Organization, Economy, and Trade
Political Geography:
Asia, South Korea, and North Korea

13. Re-Energizing Economic Integration between South Asia and East Asia

Author:
Pradumna B. Rana
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This chapter focuses on economic integration (linkages) between South Asia and East Asia.2 The topic is important for three reasons. First, South Asia-East Asia (SA-EA) trade is a component of South-South trade and could be a useful buffer should North-South trade soften, or populism lead the North to view trade as a “zero-sum” game, as is presently the case in the United States and several countries in Europe. The withdrawal of the United States from the Trans-Pacific Partnership (TPP) in January 2017 and President Trump’s reiteration of his “America First” trade policy at the 2017 APEC meetings in favor of bilateralism and “fair trade” has generated interest in alternate trade policy options in the EA region.
Topic:
Economy, Regional Integration, Trans-Pacific Partnership, and Trade
Political Geography:
South Asia, East Asia, Asia, South Korea, North Korea, and United States of America

14. The Chinese Perception of the U.S.-China-ROK Triangle

Author:
Yun Sun
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since being applied to U.S.-Soviet-China trilateral relations after the Sino-American rapprochement in the early 1970s, the notion/theory of “strategic triangles” has been widely used to examine many trilateral relations. The model of “U.S.-China plus one” is popular among students of U.S.-China relations and, consequently, the policy community has witnessed an increasing amount of scholarship on triangles among U.S.-China-India, U.S.-China-Japan, U.S.-China-Russia, and even U.S.-China-Taiwan. Unsurprisingly, this begs the question whether a strategic triangle could be construed and constructed among the United States, China, and South Korea. Generally speaking, despite the trilateral nature of U.S.-China-ROK relations, the Chinese policy community rarely subscribes to the existence of a strategic triangle among the U.S., China, and South Korea. This is not necessarily because South Korea does not carry the same strategic weight as the two great powers, but more importantly is because China does not see South Korea as possessing the strategic autonomy to act as an independent player in the trilateral relations. Although arguably such autonomy might exist in economic and trade relations, on key political and security issues, the Chinese see South Korea as invariably constrained by the U.S.-ROK military alliance and unable to form its own independent national security policy. In writing about the post-Cold War period with an emphasis on geopolitics, Chinese authors do not often treat South Korean policy or Sino-ROK relations as autonomous. Given the great weight given to the U.S. role, it is important, therefore, to take a triangular approach in assessing these writings centered on South Korea. I do so first explaining in more detail why the “strategic triangle” framework does not apply, then examining views on how this triangle has evolved in a period of rising Chinese power relative to U.S. power and fluctuating U.S.-ROK relations as the leadership in Seoul changed hands, and finally returning to the triangular theme to grasp how this shapes China’s understanding of Seoul’s policies with emphasis on the ongoing Moon Jae-in era.
Topic:
International Relations, Diplomacy, Bilateral Relations, and Geopolitics
Political Geography:
China, Asia, South Korea, North America, and United States of America

15. Chinese Views of Korean History in the Cold War Era

Author:
Jin Linbo
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This chapter draws a rough sketch of the evolution of Chinese views on Korean history in the Cold War era in three parts. The first focuses on the formulation of Chinese views of the Korean War in 1950 and the mainstream assessment of the war after Sino-South Korean diplomatic normalization in 1992. The second focuses on China’s attitudes and policies toward the two Koreas in the Cold War years. The third deals with the changes and limits of perceptions on Korean history after diplomatic normalization and their impact on bilateral relations between Beijing and Seoul. For centuries many Chinese have firmly believed that the relationship between China and the Korean Peninsula is like that between lips and teeth, they are not only close to but also dependent upon each other. If the lips are gone, the teeth will be cold. From the middle of nineteenth century, the geopolitical proximity and interdependence between the two have become the determining factors in formulating Chinese perceptions towards Korea. Since then the national security concerns symbolized by the sense of lips and teeth had been frequently stressed by some Chinese intellectuals and officials when both China and Korea were exposed to the growing imperialist expansion and geopolitical competition in East Asia. In order to maintain the traditional tributary relationship between China and Korea, China fought the first Sino-Japanese War in 1894-95. Although it was miserably defeated, and Korea was consequently annexed to the Japanese empire in 1910, the Chinese sense of lips and teeth remained undiminished. Rather, it was further strengthened among ordinary Chinese when the Cold War began and especially when the Korean War broke out in 1950. After the end of World War II, China faced a new situation on the peninsula. Korea was liberated from Japanese rule but soon divided into the Soviet backed socialist North Korea, the Democratic People’s Republic of Korea (DPRK), and the U.S. backed capitalist South Korea, the Republic of Korea (ROK). As a newly established socialist country, China naturally allied itself with the Soviet Union and viewed the DPRK as a close friend while regarding the United States and ROK as hated foes. The intensified Cold War confrontation between the two camps and two Koreas triggered the outbreak of the Korean War. In order to safeguard its own political, ideological, and security interests, China quickly got involved in the war by sending the Chinese People’s Volunteer Army (CPVA) to fight together with its DPRK friend against their common enemies. The war ended with a cease-fire armistice and created a friend and foe Cold War framework, which the new China was compelled to face even beyond the Cold War era. Under these circumstances, the majority of Chinese held the view that it was the capitalist enemy rather than the socialist friend who started the Korean War with a view to overthrowing not only the socialist government in Pyongyang but also the similar one in Beijing. Therefore, it was against this background that China’s attitudes and policies toward the two Koreas in the post-Korean War era were doomed to be ideologydriven and DPRK sympathetic.
Topic:
International Relations, Cold War, History, and Korean War
Political Geography:
China, Asia, South Korea, and North Korea

16. Chinese Views of Korean History in the Late 19th and Early 20th Centuries

Author:
Kirk W. Larsen
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In July 2014, Ambassador Qiu Guohong in preparation for Xi Jinping’s visit to Seoul stated that the “relationship between South Korea and China couldn’t be any better.”1 Among the many reasons for this—economic, geostrategic, cultural—was a shared sense of history. China and Korea, officials and commentators in both nations claimed, were close because of their agreement regarding the significance of their experiences as victims of foreign, particularly Japanese, imperialism in the 19th and 20th centuries. History, that constellation of memories, stories, and notions about the past, has often been deployed to reinforce conceptions of identity, to support certain courses of action, and to demarcate between the in-group and the other. But history is ever malleable and protean. Not only do individuals, institutions, and ideas change but so does the understanding of them. When one draws on the past, one inevitably focuses on a limited set of events or narratives that best serve one’s interests—to the exclusion of potentially equally valid candidates. Their utility can vary over time; one need only think of how figures such as Zheng He or Confucius have been imagined and re-imagined over the last century. This has been the case with the history of relations between China and Korea from the latenineteenth to the mid-twentieth centuries. For many Chinese, Korea has served first as a subject of contestation as China’s position in Korea was challenged by both Western and Japanese powers. Then, when it became increasingly clear that China (or the Qing Empire) was losing this contest, Korea became an omen of China’s own fate absent significant course changes. As Japan’s growing empire engulfed Korea and subsequently threatened parts of China, resistance served to bring China and Korea closer; many in China celebrated what they saw as courageous resistance to Japan—such as when An Chunggun assassinated Ito Hirobumi in 1909. Shared status as victims of Japanese imperialism in an age of “humiliation” brought the two closer, and the mutually shared memory of “humiliation” has been deployed by contemporary Chinese and South Korean leaders—Xi Jinping and Park Geun-hye—to foster greater levels of cooperation. However, past conceptions of China, Korea, and the Sino-Korean relationship have sometimes ranged far afield from the cherished tropes of humiliation and the struggle for independence. Even seemingly universally agreed upon symbols, such as An’s heroic 1909 assassination, find themselves subject to changing interpretations such as recent emphasis by some on his pan-Asian vision of Sino-Korean-Japanese cooperation rather than his bold anti-Japanese act. As interests and priorities change, so does the utility of any particular historical narrative.
Topic:
International Relations, Diplomacy, Imperialism, and History
Political Geography:
China, Asia, South Korea, North Korea, and Korea

17. Chinese Views of Korean History to the Late 19th Century

Author:
Gilbert Rozman
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the tradition of imperial China and communism, Chinese publications see history as a morality tale. In the case of Korean history to the late decades of the nineteenth century there are essentially three actors: virtuous China, evil Japan, and variable Korea. There are three critical periods which receive the bulk of attention: the 7th century, the late 16th century trailing into the 17th century change of dynasty in China, and the last decades of the 19th century. The narrative advances the notion of competing visions of regional order, contrasting Chinese and Japanese frameworks and examining Korean policies in light of the choices made between these options. Official Chinese narratives couch today’s opportunities in historical context. A battle rages between socialism and capitalism, offering China a unique prospect to tip the balance. This is not only a present-day challenge; it is a struggle over consciousness of history—a campaign against “historical nihilism” that disagrees with orthodoxy in support of communist party legitimacy and the rectitude of Chinese civilization. A speech given by Xi Jinping in July 2010 at the Central Party School and only recently made available leaves no doubt about the tight censorship imposed on publications about history. South Korea’s history is especially sensitive as the poster-child for the benevolence of the imperial Chinese regional order, the battleground for the key war fought by China to maintain its surroundings against capitalist encroachment, and a chief testing grounds for the rejuvenation of China against U.S. hegemonism and Western civilization. Premodern history is an inseparable part of this agenda.
Topic:
Imperialism, Politics, History, Capitalism, and Socialism
Political Geography:
China, South Korea, North Korea, and Korea

18. The U.S.-Japan-ROK Trilateral: Better at Deterrence than Diplomacy?

Author:
Sheila A. Smith
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Once more, the United States, South Korea, and Japan have confronted a crisis with North Korea. The pattern is now well established. First, there is a provocation—a missile test, a nuclear test, and even worse, the use of force. Next, the United States and its allies in Northeast Asia muster their forces, strengthen their trilateral policy coordination, and sanction the belligerent Pyongyang. The three nations advocate for the accompanying effort by the United Nations Security Council to condemn North Korea’s behavior. Setting aside their political differences, Seoul and Tokyo intensify their military cooperation and Washington calls for greater trilateral unity in confronting a shared security challenge. In 2017, policymakers in Seoul, Washington, and Tokyo found themselves in a similar cycle but with the threat of war ever more real. The dramatic escalation of tensions between President Donald J. Trump and the North Korean leader Kim Jong-un seemed to bring the region to the brink of a second Korean conflict. But today, just as dramatically, an accelerated series of high-level summits suggests that the Korean Peninsula could be on the brink of peace. President Moon Jae-in met with Kim at Panmunjom, and both Kim and Moon stepped across the line of demarcation at the Demilitarized Zone (DMZ) between North and South Korea. The two leaders have embraced a “new era of peace,” with the promise of ending the state of war on the peninsula. Trump has also said he is willing to meet Kim to discuss denuclearization. CIA director Mike Pompeo visited Pyongyang on April 1 to test out that proposition, and as secretary of state, Pompeo had the lead in setting the stage for a meeting in Singapore. The Moon-Kim meeting set up the premise of a negotiated denuclearization process. Trump and Kim will define the contours of that path forward.
Topic:
International Relations, Security, Diplomacy, Nuclear Weapons, and Peace
Political Geography:
Japan, Asia, South Korea, North America, Korea, and United States of America

19. South Korea’s Strategic Approach to China (or Lack of It)

Author:
Chung Jae Ho
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Pertinent literature abounds on how East Asian states have struggled to position themselves vis-à-vis a rising China over the past two decades. Due to its geographical proximity and cultural similarities with China, as well as its strategic importance to both the United States and China, South Korea’s tightrope-walking has been more pronounced than anyone else’s.1 Given the crucial strategic issues regarding U.S.-China relations and the North Korean conundrum, how the Seoul-Beijing relationship is to evolve undoubtedly constitutes a key variable in regional security dynamics. This chapter asks what is Seoul’s recipe for dealing with a China that is becoming more “assertive,” examining its changing strategic and diplomatic stance over the years of the Park Geun-hye administration and the first year of the Moon Jae-in government. Of the six sections, the first offers a brief overview of the complex relationship since diplomatic normalization in 1992. The second outlines key features of an era of overoptimism during the first three years of the Park administration (2013-15). The third delves into the issue of THAAD (terminal high-altitude area defense) deployment and how that utterly shattered the Park-Xi honeymoon in 2016. The fourth offers a discussion on China’s narrowly-focused sanctions during 2016-17. The fifth is devoted to the first year of the Moon administration, focusing on envoy politics, the “three-noes controversy,” and Moon’s state visit to China. The final section provides concluding assessments of the factors critical in shaping Moon’s policy toward China and where the room for mending relations remains.
Topic:
International Relations, Diplomacy, Sanctions, and Grand Strategy
Political Geography:
China, East Asia, Asia, and South Korea

20. The Candlelight Mandate & Moon Jae-in’s Inter-Korean Dilemma

Author:
John Delury
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The question of the proper relationship between domestic sentiment and foreign policy is a vexed one. Historically, statesmen and strategists have tended to distrust or disparage the role of the demos in the elite enterprise of foreign affairs. In the immortal words of the then vice president Richard Nixon: “If we indulge in the kind of thinking which assumes that foreign policy decisions should be made on the basis of public opinion polls we might as well decide now to surrender our position of world leadership to the communists.” Yet from even the most condescending foreign policy establishment perch, it is hard to dispute the significance of securing public support for key foreign policy moves. Nixon as president was fully aware of this, carefully stage-managing his most dramatic maneuver, the visit to China in February 1972, in a way that would maximize support back home. And of course, Nixon’s loss of public trust over the Watergate scandal brought about the abrupt end of his influence on everything, including foreign affairs. Nixon’s impeachment, after years of public opposition to the war in Vietnam, strengthened the view in the United States that unsupervised elites were in fact the worst possible stewards of the instruments of national power, and that popular, democratic checks were critical ingredients in wise and prudent foreign policy. Once the public is accorded a decisive role in foreign affairs deliberation, we have to grapple with the problem of determining what “the public” thinks in the first place. Who represents “the public”? How can we assert “it” thinks one way or another? What do we mean by expressions such as “the public seems to have changed its mind”? French theorist Pierre Bourdieu, for example, challenged the validity of statistical representations of “public opinion” based on polling data. Bourdieu argues that public opinion so constructed is an “artefact” of the pollsters, rather than a reflection of an actual thing in the world. Polling data creates a false sense of certainty about public preferences—the illusion of a static and knowable thing, “the public,” where one does not exist. Despite the epistemological limitations and political biases embedded in the art of polling, public sentiment must be brought into the equation of foreign policy analysis. Particularly in a South Korean context, given the highly participatory nature of political culture, it would be foolish to adopt an elitist premise that the public factor can be ignored. South Korean president Moon Jae-in, for one, emphasizes the critical importance of democratic legitimacy and public input in all aspects of governance, including foreign policy.
Topic:
Foreign Policy, History, Governance, and Public Policy
Political Geography:
Asia, South Korea, North Korea, and Korea