Recent Debelopments on the Korean Peninsula_english

Publisher: Korean Culture and Information Service / February 2019 Newsletter

Berlin Declaration July 6

Inter-Korean summits in Panmunjeom April 27 and May 26

North Korean athletes participating in the PyeongChang 2018 Olympic Winter Games February 9

Inter-Korean summit in Pyeongyang September 18-20

North Korea-U.S. summit in Singapore June 12

Groundbreaking to modernize and reconnect railroads & roads December 26

Embarking on the path of denuclearization & peace

3

Rounds

3 Rounds of inter-Korean summits after an 11-year hiatus

2

Rounds

2 Rounds of DPRK-U.S. summits in Singapore and Hanoi

0

Incidents (2018)

No. of North Korean ballistic missile launches & NLL violations

“Now the Korean Peninsula is facing one of world history’s great transitions.

Wisdom and strength are being combined to dissolve the last remaining Cold War order on earth and bring forth an era of peace and harmony.”

(Remarks by President Moon Jae-in at the welcoming reception in Paris during his state visit to France on October 16, 2018)

Publisher: Korean Culture and Information Service / February 2019 Newsletter

A breathtaking journey in pursuit of peace on the Korean Peninsula has continued.

• The “Berlin Declaration” (July 2017) and “Moon Jae-in’s Policy on the Korean Peninsula” (November 2017) clarify the Moon Jae-in Administration’s commitment to peace and prosperity on the Korean Peninsula.

• Korea successfully hosted the PyeongChang 2018 Olympic Winter Games (February 2018) and built on the Olympic momentum to resume inter-Korean talks.

• Three rounds of inter-Korean summits and the first-ever North Korea-United States summit in Singapore helped build consensus on the advancement of inter-Korean relations and establishment of peace on the Korean Peninsula.

Shots are no longer heard in the air, on the ground or across the seas.

• The inter-Korean military agreement (September 19, 2018) was adopted to mitigate tension on the Korean Peninsula.

• The two Koreas agreed to halt all hostile acts (November 1, 2018).

• The Joint Security Area in Panmunjeom was demilitarized (October 27, 2018).

• Guard posts were shut down on a trial basis (November 12, 2018).

Peace equals economic growth.

• A groundbreaking ceremony was held for connecting and modernizing inter-Korean railroads (Gyeongui & Donghae lines) and roads (December 2018). * The project will proceed in stages in compliance with international sanctions on North Korea.

• The two Koreas agreed to make concerted efforts to modernize tree nurseries and conduct forest pest control.

• A joint survey of the Han River estuary for navigation by the two Koreas was completed (November-December 2018).

“Economic benefits of peace have become increasingly tangible, as indicated by increased tourism in the DMZ and 2018 FDI reaching a historic high of US$26.9 billion.”

Inter-Korean exchanges & cooperation for reconciliation & restoration of common national identity are rapidly picking up momentum.

• Reunions of separated families resumed for the first time in three years, reuniting 833 people from 170 families (August 2018).

• The two Koreas fielded joint teams for the 2018 Asian Games and international sports competitions (e.g. basketball, table tennis).

• Both Koreas exchanged art troupes for cultural performances.

• The two Koreas resumed the joint excavation of Manwoldae, a Goryeo-era royal palace in Gaeseong.

Publisher: Korean Culture and Information Service / February 2019 Newsletter

Bolstering peace with a robust defense Defense Reform

2.0

Strengthening fundamentals across all areas of defense (2018)

21

(2018)

18

(2021)

months

Compulsory military service period being reduced (ROK Army)

87.8

%

Pay raise for conscripted soldiers (2018)

Defense Reform 2.0 is building stronger armed forces by improving the fundamentals of all areas of defense.

• The reform seeks to 1) build core military capabilities to counter threats from North Korean nuclear weapons and other WMDs in a timely manner, 2) downsize the number of standing troops and reduce conscripted soldiers’ service period, and 3) supply defense personnel with improved facilities and upgraded equipment. * Military force reduction: 600K troops in late 2018 → 500K troops by 2022 / Reduction in service period: down to 21 months in 2018 and to 18 months by 2021 (ROK Army)

• The reform also aims to enhance transparency in the defense industry. * The reform expands the scope of businesses required to register as defense industry brokers and mandates prior reporting for private contacts with retired government employees.

The groundwork for early transfer of OPCON has been laid based on a strong ROK-U.S. alliance.

• South Korea and the United States agreed to various strategic documents and Alliance Guiding Principles, which stipulate the continuing presence of U.S. forces in Korea as well as a restructured ROK-U.S. Combined Forces Command after the OPCON transfer (October 31, 2018).

• South Korea will work to secure core military capabilities and comprehensive nuclear/missile response capabilities, which are required for OPCON transfer (South Korea-U.S. joint examination, June-October 2018).

Publisher: Korean Culture and Information Service / February 2019 Newsletter

Korea’s rising status

115.9

$

billion

Record high exports to the New Southern Policy region

￦

5

3.2

trillion

2019 ODA budget

#

Easiest place to do business (World Bank) #1 among G20 countries

Communication and cooperation with four major powers closely related to Korea has been strengthened.

USA

•Korea has set the foundation for denuclearization and permanent peace through close cooperation with the United States.

•Issues that have a real economic impact are being resolved: the amendment of the KORUS FTA as well as Korea’s exemption from U.S. steel tariffs and sanctions on Iranian crude oil imports.

• Trust in bilateral relations is being restored through dialogue between the presidents and among highChina level officials.

• Progress has been made in practical cooperation that directly benefits citizens, such as the re-launch of an economic consultation body and a joint response to the fine dust issue.

Japan • The foundation for forward-looking Korea-Japan relations is being laid by resuming “shuttle diplomacy” and facilitating high-level dialogue.

• History-related issues are being addressed in a principled way based on facts.

• Bilateral friendship and trust between leaders are being strengthened following the first state visit of a Russia Korean president to Russia in 19 years.

• According to the agreement signed by the two presidents, a Korea-Russia FTA in the service and investment sectors is being pursued along with the launch of a Korea-Russia joint study on tripartite cooperation among the two Koreas and Russia.

The horizon of diplomatic diversification is being expanded northward and southward.

The New Northern Policy • A platform is being created for comprehensive cooperation with the Russian Far East by launching the Korea-Russia Regional Cooperation Forum (November, Pohang).

• Korea is successfully pursuing large-scale energy and infrastructure projects with Central Asian countries.

• Korea-Russia trade increased by 31% ($24.82 billion) and Korea-Central Asia trade by 49.1% ($2.97 billion) in 2018.

The New Southern Policy • Cooperation is being strengthened with ASEAN member states and India based on the 3Ps (People, Prosperity, Peace).

• The ASEAN-ROK Commemorative Summit 2019 will be held in Korea.

• Exports to New Southern Policy-related countries hit a new high in 2018 ($115.9 billion).

Publisher: Korean Culture and Information Service / February 2019 Newsletter

The influence of the Korean Wave is increasing.

•Overseas inroads are being expanded by the Korean Wave. * Cultural content export volume: $6.89 billion in 2017 → $7.5 billion in 2018 * No. of overseas Hallyu enthusiasts: 73 million in 2017 → 89 million in 2018 * K-Pop: BTS ranked top on the Billboard Chart (for best album)

• Game: Battleground ranks #1 in 100 countries, 100 million players per day •Character: Pinkfong, 10 billion views on YouTube •K-Beauty: 9th largest share of the global market and 5th largest exporter * 4 Korean companies included in the world’s top 100 cosmetic and beauty companies (in 2017)

•Korean language classes are now available in 1,495 elementary and secondary schools in 28 countries. * 1,309 classes in 2016 → 1,495 classes in 2018

International travel has become more convenient for Koreans.

•Around half of Koreans entering and exiting the country use the automated immigration clearance Smart Entry Service (36% in 2016 → 50.8% in 2018).

Development cooperation aimed at mutual prosperity is contributing to international cooperation.

•Korea’s ODA budget has been expanded to ￦3.2 trillion in 2019 (￦3.05 trillion in 2018, a ￦152.1 billion increase).

•Systematic support is provided by increasing the number of ODA projects (1,312 → 1,404 projects), and launching the Strategic Plan for International Development Cooperation.

•Overseas opportunities for youths are provided through programs like the Youth Volunteers (5,315 participants) and by increasing participation by the private sector (84 → 111 companies).

The Republic of Korea from a Global Viewpoint • Ranked 5th among 190 economies, according to the World Bank Doing Business Report (2018) * #1 among G20 countries, #3 among OECD member states, maintaining a top rank on par with advanced economies

• Ranked 15th among 140 economies according to the World Economic Forum (WEF) Global Competitiveness Report in 2018 (#17 in 2017) • Press Freedom Index: Ranked 70th in 2016 → 43rd in 2018 (Reporters Without Borders) • OECD confidence in national government (34 countries): Ranked 32nd in 2017 → 25th in 2018

Publisher: Korean Culture and Information Service / February 2019 Newsletter

600 Days into the Moon Jae-in Administration:

Changes Underway

Peace Peace on the Korean Peninsula

7,498

Ballistic missile launches Northern Limit Line violations (No. of instances)

15

115

5

0

'17 '18 Inter-Korean traffic (No. of people)

'16 '18 North Korean launches of ballistic missiles & NLL violations

833 from 170 families

Successful hosting of the PyeongChang 2018 Olympic Winter Games

0

Participation by both Koreas, and fielding of a joint ice hockey team

Three rounds of inter-Korean summits

'16 '18 Reunions of separated families (No. of people)

Follow-up measures to

In Panmunjeom on April 27 & May 26, 2018 Panmunjeom Declaration In Pyeongyang on September 18-20, 2018 Establishment of an Inter-Korean

First-ever DPRK-U.S. summit in Singapore on June 12, 2018

Peace

Liaison Office in Gaeseong Demilitarization of the Joint Security Area in Panmunjeom Pilot closure of 10 guard posts Groundbreaking for inter-Korean road & rail connections (Gyeongui & Donghae lines) Forestry cooperation for restoration of Korean Peninsula ecosystem

Peace Defense & veterans affairs

Diplomacy & foreign affairs Enhanced communication & cooperation with U.S., China, Japan and Russia Laid the foundation for denuclearization and establishment of peace through close U.S.-Korea cooperation Reestablished mutual trust & economic cooperation committee Resumed "shuttle diplomacy" and responded to history-related issues in a principled way based on facts Made the first state visit to Russia in 19 years and promoted trilateral cooperation among the two Koreas and Russia

Once a recipient, now a growing donor 3.2

8.2% 43.1 40.3

'17 '18 '19 Defense budget (tln \)

Defense Reform 2.0

Strengthening fundamentals across all areas of defense Enhancing transparency in defense industry Setting the stage for early OPCON transfer Phase 1

Up 87.8%

2.44

216K '16 '19 ODA budget (tln \) Positive 80.3 Positive 46.9 Negative 20

46.7

405K

540K

676K

'17 '18 '20 '22 Monthly pay of conscripted soldiers (\, sergeants) 21 months

18 months

Negative 6.5

'14 '18 Korea’s image from an international point of view (%)

'18 '21 Reduction in service period (ROK Army)