Interests in South and North Korea

U.S. interests in the Republic of Korea (R.O.K.—South Korea) involve security, economic, and political concerns. However, other North Korean policies and actions have affected U.S. interests including proliferation of missiles and other weapons of mass destruction to Middle Eastern countries, support for terrorist groups in the Middle East and South Asia, counterfeiting of U.S. currency and U.S. products, human rights abuses, and policies that have forced thousands of North Koreans to flee to China as refugees. South Korea is the seventh-largest U.S. trading partner. In 2007, the United States and South Korea signed a Free Trade Agreement (FTA). Since August 2003, negotiations over North Korea's nuclear weapons programs have involved six governments: the United States, North Korea, China, South Korea, Japan, and Russia. Three developments since August 2008 appear to have influenced the situation leading to North Korea's announcement: the failure to complete implementation of the Bush Administration-North Korean agreement, including completing the Yongbyon disablement, because of a dispute over whether inspectors could take samples of nuclear materials at Yongbyon; the stroke suffered by North Korean leader Kim Jong-il in August 2008; and the issuance by North Korea after January 1, 2009, of a tough set of negotiating positions, including an assertion that the United States must extend diplomatic relations prior to any final denuclearization agreement rather than in such an agreement, that a denuclearization deal must include the construction of light water nuclear reactors in North Korea, and that U.S. reciprocity for North Korean denuclearization must be an end of the "U.S. nuclear threat," meaning major reductions of and restrictions on U.S. military forces in South Korea and around the Korean peninsula. North Korea had rejected South Korean food and fertilizer aid in 2008, and it expelled the U.S. food aid program in March 2009. Reports of the Bosworth mission and a North Korean Foreign Ministry statement of January 11, 2010, indicated that North Korea seeks to draw the United States into negotiation of a bilateral peace treaty, move the nuclear issue into a bilateral peace treaty negotiation (thus scuttling the six party talks), negotiate with the United States over elimination of the "U.S. nuclear threat" (which North Korea says must be eliminated as part of "denuclearization of the Korean peninsula") and demand an early elimination of U.N. and U.S. sanctions against North Korea. The Obama Administration has emphasized these sanctions in its discussions with several countries. North Korea is estimated to have more than 600 Scud short-range missiles with a range of up to 300 miles. List of State Sponsors of Terrorism

The removal of North Korea from the U.S. list of state sponsors of terrorism ended the absolute requirement under U.S. law ( P.L. The Japanese government asserts that it has knowledge that North Korea has kidnapped at least 17 Japanese citizens. Numerous reports indicate that North Korea's activities include providing training and weapons to Hezbollah and cooperation with the Iranian Revolutionary Guards in the development of both missiles and nuclear weapons. Food Aid

Since 1995, the international community has donated over 12 million metric tons of food aid to North Korea to help alleviate chronic, massive food shortages that began in the early 1990s. It has not raised the issue in the six party talks. It calls for human rights to be a principal element in U.S. policy toward North Korea, including negotiations with North Korea and other Northeast Asian states. Key principles of this conciliation policy were the extension of South Korean economic and humanitarian aid to North Korea; the promotion of North-South economic relations; separating economic initiatives from political and military issues; no expectation of strict North Korean reciprocity for South Korean conciliation measures; avoidance of South Korean government public criticisms of North Korea over military and human rights issues; and settlement of security issues with North Korea (including the nuclear issue) through dialogue only without pressure and coercion. The Obama Administration also has called for a further relaxation of South Korean restrictions on imports of U.S. beef. Opposition in the U.S. Congress to the FTA appears to be strong. Many of its provisions are modeled after the draft U.S.-R.O.K. military commands into two commands; (3) possible further reductions of U.S. forces in South Korea, particularly U.S. ground forces; (4) a South Korean military contribution to Afghanistan; and (5) South Korea's share of the cost of maintaining U.S. forces in South Korea (i.e., host nation support). Separate U.S. and R.O.K. President Roh Moo-hyun sent 3,600 R.O.K.
The United States has had a military alliance with South Korea (R.O.K.) and important interests in the Korean peninsula since the Korean War of 1950-1953. Many U.S. interests relate to communist North Korea. Since the early 1990s, the issue of North Korea's development of nuclear weapons has been the dominant U.S. policy concern. Experts in and out of the U.S. government believe that North Korea has produced plutonium for at least six atomic bombs. North Korea tested nuclear devices in October 2006 and May 2009. In 2007, a six party negotiation (among the United States, North Korea, China, South Korea, Japan, and Russia) produced agreements that resulted in a disablement of North Korea's main nuclear reactor and U.S. removal of North Korea from the U.S. list of state sponsors of terrorism. In April 2009, North Korea rejected six party talks. The Obama Administration began bilateral talks with North Korea in December 2009 aimed at returning North Korea to the six party talks; North Korea demanded first a lifting of U.N. sanctions and negotiation of a U.S.-North Korean peace treaty.
Other North Korean policies affect U.S. interests. North Korean exports of counterfeit U.S. currency and U.S. products produce upwards of $1 billion annually for the North Korean regime. North Korea earns considerable income from sales of missiles and missile and nuclear technology cooperation with Iran and Syria. It has developed short-range and intermediate-range missiles, but it has so far failed to develop an intercontinental ballistic missile. It is estimated to have sizeable stockpiles of chemical and biological weapons. Pyongyang's main goal of its nuclear program appears to be the development of nuclear warheads that can be mounted on its missiles. North Korean involvement in international terrorism has included the kidnapping of Japanese citizens, reportedly arms and training to the Hezbollah and Tamil Tigers terrorist groups, and cooperation with the Iranian Revolutionary Guards in development of missiles and nuclear weapons.
U.S. human rights groups are involved in responding to the outflow of tens of thousands of North Korean refugees into China, due to severe food shortages inside North Korea and the repressive policies of the North Korean regime. U.S. and international food aid to North Korea has been provided since 1995, but North Korea rejected South Korean food aid in 2008 and expelled U.S. food aid workers in March 2009. North Korea faces severe food shortages in 2010.
South Korea followed a conciliation policy toward North Korea under the administrations of Kim Dae-jung and Roh Moo-hyun; but President Lee Myung-bak, elected in December 2007, linked South Korean aid to North Korea, including food aid, to the nuclear and other policy issues. North Korea responded by cutting off most contacts with the Lee government until August 2009. North Korea then made overtures to South Korea, probably because of its worsening food situation.
The United States signed a Free Trade Agreement (FTA) with South Korea (the seventh-largest U.S. trading partner) in 2007. There is substantial opposition to the FTA in Congress. The Obama Administration has called for renegotiation on the automobile provisions and additional South Korean measures to open the R.O.K. market to imports of U.S. beef. The U.S.-R.O.K. military alliance appears to function well. It is dealing with several issues of change: relocations of 28,500 U.S. forces within South Korea; construction of new bases; the creation of separate U.S. and South Korean military commands in 2012; possible future withdrawals of U.S. ground forces to U.S. conflict areas; an R.O.K. military contribution to Afghanistan; and South Korean financial support for U.S. forces.