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21. Doubling Down on the U.S.-South Korea Alliance: Olympics Diplomacy Did Not Breach Trust, but TrumpMoon Confidence Is in Jeopardy

Author:
Leif-Eric Easley
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The U.S.-ROK alliance faced a quickening pace of North Korean provocations in 2016-17, with Pyongyang violating UN Security Council resolutions dozens of times. Those violations included a fourth nuclear test in January 2016, fifth in September 2016, and sixth in September 2017, as well as numerous missile tests of various trajectories from different platforms. North Korea tested intermediate-range missiles overflying Japan and missiles of intercontinental range on lofted trajectories, while developing road-mobile and submarinelaunched ballistic missiles. As policymakers in Seoul and Washington coordinated responses to those provocations, changes in national leadership and domestic political preferences brought into question the bilateral trust the alliance needs to deter conflict, reassure publics, and promote regional cooperation. Elections have consequences, even before votes are cast. Enduring international security alliances are based on shared national interests and a track record of diplomatic commitments and military cooperation. For allies with highly integrated defense policies, such as the United States and South Korea, it is natural for policymakers and citizens to keenly observe the national elections of the other country. Will the next government be a reliable partner, or will it fail to honor existing agreements? Will the incoming leadership improve relations, or will it downgrade cooperation? These questions were being asked before Donald Trump and Moon Jae-in were elected. The search for answers inevitably involves speculation, feeding expectations that are often overly optimistic or pessimistic. Ahead of Trump’s election, his campaign rhetoric questioned the terms and intrinsic value of the alliance to an extent not seen since Jimmy Carter’s 1976 campaign promise to withdraw U.S. troops from the Korean Peninsula. President Moon came to power on the heels of conservative president Park Geun-hye’s impeachment and removal for corruption. Moon’s politics are notably more progressive than Park’s or Trump’s, including a record of pro-engagement policies toward North Korea. Against this backdrop, Kim Jong-un delivered his 2018 New Year’s Day address claiming that North Korea has the ability to hit any U.S. city with a nuclear-armed missile, but that Pyongyang is ready to re-engage Seoul via participation in the Winter Olympics.
Topic:
Security, Diplomacy, Bilateral Relations, Elections, Alliance, Olympics, and Donald Trump
Political Geography:
Asia, South Korea, North America, Korea, and United States of America

22. Salvaging the Sunshine Policy

Author:
David Straub
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Shortly before his election as South Korea’s president in May 2017, candidate Moon Jaein issued his most detailed North Korea policy statement. As president, he declared, he would “inherit” the engagement-based, inducements-oriented Sunshine Policy approach of Korea’s only other progressive presidents, Kim Dae-jung (1998-2003) and Roh Moohyun (2003-2008)1. Moon judged the North Korea policies of his immediate predecessors a failure; Presidents Lee Myung-bak (2008-2013) and Park Geun-hye (2013-2017), both conservatives, had disagreed with key aspects of the Sunshine Policy and suspended the major inter-Korean projects undertaken by Kim and Roh. Moon’s emphasis on incentives to Pyongyang contrasted with United Nations Security Council resolutions adopted during the preceding decade; far from offering inducements, the UNSC had imposed increasingly stringent sanctions on the regime in response to its accelerating pursuit of a full-fledged nuclear weapons capability. Moon also struck quite a different tone than the new Trump administration in Washington, which had only recently concluded a North Korea policy review and characterized its approach as one of “maximum pressure and engagement. This chapter assesses Moon’s North Korea policy, its implementation during his initial year in office, and its prospects under difficult circumstances. It begins by reviewing the Sunshine Policy concept, its practice by previous progressive governments, and the significantly different approach of South Korea’s succeeding conservative administrations. It then argues that Moon and many progressives continue to believe in the basic Sunshine Policy approach, even though, unlike when the policy was first formulated, North Korea now already has a limited nuclear weapons capability and may soon be able to credibly threaten the United States homeland with nuclear attack. It reviews how Moon, as president, has attempted to salvage the policy and how North Korea and other concerned countries have responded. The chapter concludes by considering the prospects for Moon’s North Korea policy and offering recommendations to modify it to maximize the interests of both the ROK and the international community as a whole.
Topic:
Government, Politics, Governance, and Public Policy
Political Geography:
Asia, South Korea, North Korea, and Korea

23. South Korea's Diplomatic Options Under Moon

Author:
Korea Economic Institute of America
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
During his first year as president, Moon Jae-in faced a challenging strategic environment and divergent advice on how to manage it. He could cater to his progressive base and act in accord with his political lineage by renewing the Sunshine Policy toward North Korea. Alternatively, he could strive for consensus at home by reconciling the differences with conservatives in foreign policy. In diplomacy with the great powers, he also had important choices to make. He could double down on the U.S. alliance or, going further, he could agree to trilateralism with Japan. Yet, he also could be tempted by the option of balancing dependence on the United States with a closer relationship with China. Impacting all of his choices was the question of how Kim Jong-un would focus in 2018, shifting from provocations aimed at military leverage to diplomacy linked to his outlook on Moon’s policies. In the following five chapters authors explore each of these options. This introduction reviews some of their findings and points to linkages among them as part of an overall assessment of how Moon has navigated among the choices he was facing. The following chapters set forth the options that Moon Jae-in has before him. Chapter 1 by David Straub seeks to grasp the appeal of a renewed Sunshine Policy to Moon, while spelling out the implications of taking that route, warning of a breach in trust with the United States if not a temporary welcome from Donald Trump eager for a Nobel Peace Prize. Leif Eric-Easley’s analysis in Chapter 2 assesses the prospects of Moon doubling down on the ROK alliance with the United States and argues that, so far, trust between allies has been sustained, including in 2018 as diplomacy intensified with summitry on the agenda. In Chapter 3 John Delury examines the domestic political environment, pointing to the impact of the Candlelight movement, which offers opportunities for Moon as well as constraints on policies he might adopt. Chung Jae Ho in Chapter 4 explores Sino-ROK relations and the prospects of Moon drawing closer to China with consequences for relations with the United States. A fifth chapter by Sheila Smith focuses on Japan-ROK relations, newly strained by different approaches to diplomacy with Kim Jong-un. Each chapter views Moon’s policies and proclivities in the context of the dynamics of bilateral ties, while following closely what has been happening to those ties during the tumultuous course of Moon’s first year in office, notably in the first third of 2018 as diplomacy intensified.
Topic:
Diplomacy, Government, and Politics
Political Geography:
Asia, South Korea, and Korea

24. Full Book | Joint U.S.-Korea Academic Studies 2018

Author:
Gilbert Rozman
Publication Date:
08-2018
Content Type:
Book
Institution:
Korea Economic Institute of America (KEI)
Abstract:
At the Korea Economic Institute of America (KEI), we foster connections to advance United States-Republic of Korea ties. Through bringing together people with an interest in topics of importance to this relationship, KEI works to further mutual understanding between our two countries. With a whirlwind of new developments in the region, sharing ideas now is of even greater importance. Our 2018 Academic Symposium, through which we endeavor to bridge the academic and policy communities, contributes to understanding crucial questions in the Asia-Pacific. KEI held parts of our Academic Symposium at two conferences this year for the first time. We were pleased to return to the International Studies Association (ISA) annual conference for two panels in San Francisco, California. The conference featured over 6,000 international affairs scholars from around the world with a wide range of research interests and regional specializations to present papers and hold discussions on contemporary issues. We were also pleased to contribute a panel presentation to the Association of Asian Studies (AAS) conference in Washington D.C., which included nearly 4,000 researchers from various disciplines focusing on Asia throughout history. And, for the third year as part of our Academic Symposium, KEI hosted a fourth panel in our own conference room. Marking seven years of collaboration, KEI again turned to the skills and insights of Dr. Gilbert Rozman, the emeritus Musgrave Professor of Sociology at Princeton University, to serve as the Editor-in-Chief for this Joint U.S. - Korea Academic Studies volume and as an advisor to KEI’s programs at the ISA and AAS conferences. This partnership has once more brought together an excellent group of scholars and practitioners. The experts in this volume have thoughtfully addressed themes that are pervasive throughout Asia and are timely for the U.S.-Korea alliance. South Korean President Moon Jae-in took office in May 2017 with ambitious plans for diplomatic initiatives, but faced challenges from both home and abroad in implementing them. How President Moon has pursued his foreign policy options so far is explored in the first section. As China looks ahead to playing a larger role in region, the second section reminds us of how Beijing’s past relationships on the Korean Peninsula play a pivotal role in its outlook towards Seoul and Pyongyang. The penultimate section examines how key regional stakeholders are seeking to advance their trade interests in the wake of U.S. President Donald Trump’s break with international economic policy norms. In the final section, the authors attempt to make sense of North Korea’s outreach in 2018 by each analyzing its possible strategies. Whether our connection with you is new or continuing, we hope you enjoy the 29th edition of the Joint U.S.-Korea Academic Studies volume.
Topic:
International Relations, Security, Diplomacy, and Bilateral Relations
Political Geography:
Asia, South Korea, North Korea, and Korea

25. Unification in Action? The National Identity of North Korean defector-Migrants: Insights and Implications

Author:
Christopher Green and Stephen Denney
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
What can the resettlement of North Korean defector-migrants into South Korean society today tell us about Korean national identity and the likely challenges of integrating the two Koreas tomorrow? In this paper, we report findings from a 2016 national identity survey of 334 North Korean defector-migrants currently residing in South Korea. It compares responses to that of native South Koreans and considers in-group differences of opinion. Overall, we find no substantive identity divergences between those from North Korea and native South Koreans. We do, however, find evidence of significant in-group identity differences, namely cohort effects. Older defector-migrants are more likely to see their “Koreaness” as defined by ethnocultural traits, feel closer to South Korea, and be more “patriotic” than younger migrants.
Topic:
Demographics, Migration, Refugees, and Domestic politics
Political Geography:
Asia, South Korea, North Korea, and Korea

26. The Evolution of the North Korean Nuclear Program: from Survival Strategy to Ideological Legitimization

Author:
Marco Milani
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In recent years the North Korean nuclear program has increasingly become a major concern for East Asian security. Pyongyang has repeatedly demonstrated its advancements in both missile and nuclear technology, with the final goal of acquiring a credible nuclear deterrent. To achieve this goal, the regime has committed a vast amount of state resources and has jeopardized relations with neighboring countries and major powers. This dangerous situation has created instability in the region and has hindered the possibilities of inter-Korean dialogue and cooperation. The traditional interpretation of the North Korean nuclear program focuses on the survival of the regime and emphasizes the military aspect of security. While these factors play a significant role, over the last twenty-five years new roles have emerged for the nuclear program. Survival remains the priority, but in addition to the military level of nuclear deterrence this paper introduces two different aspects directly connected to the security of the regime: economic security and domestic ideological legitimization. The development of nuclear weapons has been repeatedly used by Pyongyang as leverage in negotiations and to strengthen its political legitimacy. Understanding the complexity and the different factors behind this strategy is crucial to design and implement a viable and effective strategy aimed at limiting or eliminating the North Korean nuclear threat.
Topic:
Security, Diplomacy, Nuclear Weapons, Bilateral Relations, and Denuclearization
Political Geography:
East Asia, Asia, South Korea, North Korea, and Korea

27. Making Korea Grow Again: Rebalancing the Moon Jae-in Economic Agenda

Author:
Choong Yong Ahn
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Moon Jae-in administration in South Korea has taken a two-pronged approach to ensure urgently needed job creation and inclusive growth. Although measures towards each set of economic policies have been implemented since Moon took office in May 2017, what’s often referred to as “incomeled growth” has been prioritized over innovative growth. The income-led growth model is largely driven by domestic consumption through pro-labor distributional policies including a wage hike to raise the disposable income of low- and middleincome individuals, thereby triggering equity with growth. Focused more on the supply side, the innovative growth model encourages startups to create jobs and innovate. It is a great challenge for Korea to pursue growth and equity through both sets of policies. After a year in office, the Moon administration’s economic agenda, often referred to as J-nomics, has not fully produced the intended policy objectives in terms of job creation and growth. To mitigate a declining potential growth rate and pursue robust and inclusive growth, the twin policies need to be rebalanced, reprioritized, and interconnected in a mutually reinforcing manner to empower the private sector to play a bigger role. As a mid-sized open economy, Korea requires global market competitiveness on the supply side to create decent jobs by buoying entrepreneurship and innovation. Structural reforms in the labor market combined with deregulations necessary for the advent of disruptive 4th-industrial-revolution technologies must be expedited. Furthermore, a new business ecosystem in which win-win collaborations between globally-oriented conglomerates and small businesses must be encouraged to replace a zero-sum business culture.
Topic:
Economics, Science and Technology, Global Markets, and Economic growth
Political Geography:
Asia, South Korea, and Korea

28. The Economic Importance of the KORUS FTA: A Case Study of the Korean Beef Market After Renegotiations

Author:
Jin Kyo Suh
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Beef trade was a major sticking point between the United States and South Korea in ratifying the KORUS FTA. The outcome of the renegotiations that led to the March 2018 agreement in principle did not impact sections pertaining to beef in the agreement, though looking at how beef trade would have been affected should the talks have failed highlights the importance of the agreement to both countries, but particularly the United States. This paper estimates the demand for imported beef in South Korea by source and product by using the production version of the Rotterdam demand system and assesses what the potential impact of U.S. withdrawal from the KORUS FTA would have been on beef trade between the U.S. and South Korea. The results suggest U.S. withdrawal from the KORUS FTA would have resulted in a considerable increase in Australian beef exports to South Korea, largely at the expense of U.S. beef. This is because there is significant price competition between beef imports from the United States and Australia. Furthermore, Korean consumers substitute American beef for Australian beef when the relative price of U.S. beef rises.
Topic:
Economics, Treaties and Agreements, Exports, and Trade Policy
Political Geography:
Asia, South Korea, North America, Korea, and United States of America

29. Science Diplomacy: An Underestimated Toolkit of South Korea’s Foreign Policy

Author:
Olga Krasnyak
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Science diplomacy is becoming increasingly popular in foreign policy. Branching out of public diplomacy, science diplomacy is a sophisticated and knowledge-based toolkit to secure and promote foreign policy objectives. Unlike the U.S., the best example of how effective science diplomacy can be, South Korea does not recognize science diplomacy as a source of soft power. This paper looks at ways to incorporate science diplomacy into Seoul’s foreign policy agenda, the benefits from which will further its goals in advancing South Korea’s image as an attractive, cooperative, and influential country. Building South Korea’s reputation as among the core of scientifically developed countries will not only enhance commercial benefits, but also help address the current security dilemma, shape future geopolitical outcomes in a multi-polar world, and accelerate Korea’s participation in emerging scientific endeavors such as space exploration.
Topic:
Foreign Policy, Diplomacy, and Science and Technology
Political Geography:
Asia and South Korea

30. A Way Out of the North Korean Labyrinth

Author:
Stephen Blank
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The sudden announcement of a North Korea-U.S. summit in March 2018 upended all previous diplomacy concerning North Korea’s nuclear program. In return for a bilateral presidential summit, Pyongyang has agreed to suspend testing of its nuclear and missile programs and accepted the continuation of scheduled U.S.-South Korea exercises as planned. While this unexpected development reduces tensions and opens up a political path to a solution on the Korean Peninsula, it also imparts increased urgency for a well-conceived U.S. diplomatic strategy so that the summit and any ensuing negotiations lead to positive outcomes for Washington and Seoul and the other interested parties, thus ensuring its sustainability. In this context, the author advances an assessment of the current situation and a proposal for a U.S. program that could reduce military tensions in and around Korea, lead to the stabilization of a new and legitimate equilibrium in Northeast Asia, and advance shared American, South Korean, and Japanese objectives.
Topic:
International Relations, Security, Foreign Policy, Weapons, and Denuclearization
Political Geography:
Asia, South Korea, North Korea, North America, Korea, and United States of America