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Economy / South Korea

South Korea

June 2005 | Risk Summary

President Roh Moo-hyun has met US President George W. Bush in Washington in an effort to close ranks on the issue of North Korea nuclear weapons production. The US-South Korean alliance has encountered a rough patch driven largely by differing approaches to dealing with Pyongyang. Seoul is reluctant to support the more aggressive American posture, including possible economic sanctions or a military blockade of North Korea, instead urging a more conciliatory approach. But if the six-party talks on nuclear disarmament of the reclusive state fail to bring a resolution, Seoul will face stronger pressure to reduce economic co-operation with North

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