	Introduction

From 1988 until 2008, the State Department designated the government of North Korea, officially known as the Democratic People's Republic of Korea (DPRK), as a state sponsor of terrorism. As of January 2015, the governments of Cuba, Iran, Sudan, and Syria are on the lists. Interdictions of North Korean missile and conventional arms shipments to Iran and Syria, and from Cuba—as well as reports of North Korean arms sales to and training of known terrorist actors such as Hezbollah and Hamas—also have fueled the calls to redesignate the DPRK government as a state sponsor of terrorism. In the 114 th Congress, H.R. 204 expresses the sense of Congress that the Secretary of State should redesignate North Korea as a state sponsor of terrorism. Thus, redesignating the DPRK as a terrorism sponsor appears unlikely to inflict significant direct economic punishment on North Korea, particularly in the short term. For a number of reasons, a decision to redesignate the DPRK as a state sponsor of terrorism could have a significant impact on diplomacy with North Korea. The Kim regime has been promoting a two-track policy (the so-called byungjin line) of nuclear development and economic development, with the latter goal partially dependent upon influxes of foreign investment. Placing North Korea back on the lists could forestall any future diplomatic initiatives between the United States and North Korea. Redesignation could be interpreted by North Korean leaders, as well as officials in other countries, as a sign that the Obama Administration is not interested in dialogue. Additionally, given previous patterns of North Korean behavior, it is possible that Pyongyang would respond to a redesignation by taking additional provocative actions, such as more nuclear-weapon or long-range-missile tests. North Korea has not conducted such tests since early 2013. Listing a Country as a State Sponsor of Terrorism

The Secretary of State can designate a government of a country as a state sponsor of acts of international terrorism pursuant to three laws: Section 6(j) of the Export Administration Act of 1979; Section 40 of the Arms Export Control Act; and Section 620A of the Foreign Assistance Act of 1961. In North Korea's case, diplomatic and policy considerations appear to have weighed heavily in the designation of the DPRK from 2000 to 2007, as well as in the decision to remove the designation in 2008. In February 2007, the six parties reached an agreement under which North Korea agreed to freeze and then disable its nuclear programs, and the United States agreed to take steps that included removing North Korea from the terrorism sponsor list. Questions About North Korea's Relationship with Terrorists, State Sponsors of Terrorism, and Terrorist Activities

Since 2003, the State Department's annual report on global terrorist activities has stated that North Korea has not been conclusively linked to any terrorist acts since the 1987 KAL bombing. Some observers have questioned the basis for the State Department's claims. U.S. government statements that North Korea provided nuclear materials to Libya in the early 2000s. To date, cyber-related incidents such as the late 2014 attack on Sony have not been used as justification for inclusion on the state sponsors of terrorism lists. The 2009 and 2013 seizures of chemical protection equipment bound for Syria appear to be the only DPRK actions since 2008 that both (1) were recognized by official U.S. or U.N. bodies, and (2) conceivably could have met the statutory criteria for relisting.
From 1988 until 2008, the United States designated the government of North Korea, officially known as the Democratic People's Republic of Korea (DPRK), as a state sponsor of terrorism. The Reagan Administration designated the DPRK after it was implicated in the 1987 bombing of a South Korean airliner, in which more than 100 people died. The George W. Bush Administration removed the designation from the DPRK in 2008, one of the measures the United States took in exchange for North Korea's agreement to take steps to disable its nuclear program. As of early 2015, only the governments of Cuba, Iran, Sudan, and Syria remain on the lists.
The State Department can designate a government as a state sponsor of acts of international terrorism pursuant to three laws: the Export Administration Act of 1979; the Arms Export Control Act; and the Foreign Assistance Act of 1961. Thus, there effectively are three state sponsors of terrorism "lists." The State Department can use a variety of criteria when assessing whether a government should be added to and removed from the lists. In North Korea's case, policy considerations appear to have weighed heavily in the designation of the DPRK from 1988-2007, as well as in the decision to remove the designation in 2008. In the 114th Congress, H.R. 204 expresses the sense of Congress that the State Department should redesignate the DPRK as a state sponsor of terrorism.
According to the State Department, North Korea has not been conclusively linked to any terrorist acts since 1987. Some observers have questioned the Department's claim. These observers support their contention by citing seizures of cargo ships carrying North Korean missile parts and conventional weapons, apparently to Syria and Burma (Myanmar). U.S. government agencies have stated that North Korea helped Syria build a nuclear reactor, and that North Korea and Iran cooperate closely in missile development. According to press reports, North Korea has provided support to Hamas and Hezbollah, and has targeted North Korean refugees living overseas for kidnapping and assassination. The 2010 sinking of a South Korean naval vessel also triggered calls to redesignate the DPRK. To date, cyber-related incidents such as the late 2014 attack on Sony have not been used as justification for designation as a state sponsor of terrorism. The 2009 and 2013 seizures of chemical protection equipment bound for Syria appear to be the only DPRK actions since 2008 that both (1) were recognized by official U.S. or U.N. bodies, and (2) conceivably could have met the statutory criteria for designation.
Redesignating the DPRK as a terrorism sponsor appears unlikely to inflict significant direct economic punishment on North Korea, particularly in the short term. However, a decision to redesignate North Korea as a state sponsor of terrorism could have a significant impact on international diplomacy with North Korea. The Kim regime could perceive redesignation as a threat to its two-track policy of nuclear development and economic development, with the latter goal partially dependent upon influxes of foreign investment. Placing North Korea back on the lists could forestall future diplomatic initiatives between Washington and Pyongyang, particularly if North Korean leaders—as well as Chinese leaders—interpret it as a sign that the United States is not interested in dialogue. Given previous patterns of North Korean behavior, it is possible that Pyongyang would respond to a redesignation by taking additional provocative actions, such as more nuclear-weapon or long-range-missile tests. North Korea has not conducted such tests since early 2013. Returning Pyongyang to the terrorism sponsor lists also could complicate the South Korean government's initiatives to improve relations with North Korea. Assessing the merits of these implications depends heavily on whether or not one believes the United States should adopt a harsher stance toward Pyongyang.