ISSN 1010-1608 Larry a. Niksch The The Journal of EAST ASIAN AFFAIRS When North korea Mounts Nuclear Warheads on its Missiles aNdrzej BoBer The last Twenty years of relations betweenthe republic of Poland and the democratic People’s republic of korea-selected aspects iNsoo kiM & MiN yoNg Lee has the Military superseded the Party under kim jong-il’s rule? edWard kWoN Managing a Financial crisis: a comparative Political economic analysis of the United states and south korea Volume 25 Number 2 Fall/Winter 2011 ki-sik hWaNg & hyUN-jUNg kiM an analysis on the Fdi determinant of clean development Mechanism(cdM) yeoNgMi yUN & kicheoL Park an analysis of korean Multiculturalism: Policies and Prospects o. yUL kWoN does culture Matter for economic development in korea? Vol. Vol. 25, No.2 2011 Institute for National Security Strategy THE JOURNAL OF EAST ASIAN AFFAIRS Publisher : Sung Wook Nam, Ph.D Editor-in-Chief : In Ho Lee, Ph.D Editors : Gap-Ju Chae, Ph.D; Hyung-Seog Lee, Ph.D; Seung-Myung Lee, Ph.D Copy Editors : Mr. Kevin Sok Won Lee Assistant Editors : Hyun-Hee Kim The Journal of East Asian Affairs is published twice a year by Institute for National Security Strategy(INSS). Institute for National Security Strategy, which was restructured from the former Research Institute for International Affairs, is a nonprofit organization founded in 1977 in Seoul, Korea. The Institute is dedicated to the development of policy recommendations in international relations, economics policy, security, and inter-Korean relations. Currently, it has around 50 resident analysts, many of whom have been trained in the U.S., Europe, and East Asia. The Institute has been publishing The Journal of East Asian Affairs since January 1981. It has around 1,800 worldwide subscriptions, primarily among academics, government officials, and journalists. The Journal can be widely found in the libraries of major universities and research institutes around the world. The Journal welcomes the submission of manuscripts and review articles associated with East Asia in the fields of international politics, economics, social, and security aspects of contemporary East Asian affairs. Those wishing to contribute articles to the Journal should read the submission guidelines located on the end part of this issue. Opinions expressed in the Journal of East Asian Affairs are those of the individual contributors, and represent neither the views of the editors, nor those of Institute for National Security Strategy. Permission to reproduce articles from the Journal should be sought in written form from the editor-in-chief. Annual Subscription Rates (two issues including postage): Domestic: ￦30,000; Overseas: US $30 ISSN 1010-1608; Printed in December 30, 2011 in Seoul, Korea Copyright by Institute for National Security Strategy Instopia Bldg. 17th Floor, 467-23, Dogok-dong, Kangnam-gu, Seoul, Korea Tel: 82-2-572-7090 extension: 216 E-Mail: [email protected] Website: http://www.inss.re.kr The Journal of EAST ASIAN AFFAIRS Vol.25, No.2 Fall/Winter 2011 THE JOURNAL OF EAST ASIAN AFFAIRS Vol.25 Fall/Winter 2011 No.2 CONTENTS When North Korea Mounts Nuclear Warheads on Its Missiles Larry A. Niksch 1 The Last Twenty Years of Relations betweenthe Republic of Poland and the Democratic People’s Republic of Korea－Selected Aspects Andrzej Bober 21 Has the Military Superseded the Party under Kim Jong-Il’s Rule? Insoo Kim & Min Yong Lee 39 Managing a Financial Crisis: A Comparative Political Economic Analysis of the United States and South Korea Edward Kwon 55 An Analysis on the FDI determinant of Clean Development Mechanism(CDM) Ki-sik Hwang & Hyun-Jung Kim 85 An Analysis of Korean Multiculturalism: Policies and Prospects Yeongmi Yun & Kicheol Park 131 Does Culture Matter for Economic Development in Korea? O. Yul Kwon 163 Contributors ii CONTRIBUTORS Mr. Andrzej Bober(M.A., PhD candidate since 2008 at the University of Lodz / Poland) is a Polish free publisher cooperating with many polish magazines (Rzeczpospolita, Newsweek, Tygodnik Powszechny, Angora, Przekroj, Przeglad, Przeglad Sportowy, Polska Zbrojna, Poznaj Swiat) and is also writing for www.azjapacyfik.pl and other Internet portals. He participated in internship programs in Polish Embassies in Bern and Pyongyang. Since 8 years he specializes in Korea-related issues. His research focuses on the issue of unification of North and South Korea, international aspects of the Korean Peninsula problems and the relationship between both Korean states. Languages: Polish (C2), German (C2, Diplom of German Philology), Russian (C1, certificate), English (C1), Korean (A2). Dr. Ki-Sik Hwang is an assistant professor and department chair, Graduate School of Northeast Asia International Studies, Dong-A University. He received MSc, and MPhil degrees from London School of Economics and his Ph. D. in international political economy from University of London (Goldsmiths College). His recent academic papers are “Japanese and Korean Foreign Direct Investment in Central and Eastern Europe: the strategies and economic activities", Journal of Korea Trade, (November 2008) and “An Analysis of EU Common Policy and Regulation in Information and Communication Technologies: Focus on a Discussion of Net Neutrality", EU Studies, (August 2011). Dr. Hyun-Jung Kim is a lecturer, department of international relations, Chang-Won National University. She earned Master's degree and her Ph. D. from Graduate School of Northeast Asia International Studies, Dong- A University. Her most recent publication is “The Investment Environment for the CDM and Continuous Development of Host Locations,” National Strategy (Summer 2011). Dr. Insoo Kim is a South Korean Army Major. Insoo Kim(Ph.D. in Sociology, University of Wisconsin) is an assistant professor at the department of political science in Korea Military Academy, South Korea. He is currently a visiting scholar at University of Maryland at College Park. His areas of specialization include military organizations, civil-military relations, and network analysis. Dr. Edward Kwon is an assistant professor of Political Science at Northern Kentucky University in the United States. He received his Ph.D. at the Department of Political Science of University of Hawaii at Manoa. His research interests include global governance in the international financial system, East Asian security, and international relations of East Asia. His articles have appeared in journals such as Journal of Contemporary Asia, International Relations of the Asia-Pacific, East Asia: An International Quarterly, Pacific Focus, and Journal of Peace Research. He is a reviewer for several publishers and various international relations and area studies journals. Dr. O. Yul Kwon holds the Korean Foundation Chair in Korean Studies at Griffith University, Australia since 1996. His education includes a Bachelor degree from Seoul National University in Korea, and MA and Ph.D. degrees in economics from McMaster University, Canada. He is also the Director of the Australian Centre for Korean Studies at Griffith University. He also holds adjunct professorship at the Beedie School of Business, Simon Fraser University, Vancouver, Canada. He has published nine books and edited three books. He has published numerous articles in refereed journals and business magazines, chapters of books, and special columns in newspapers. His recent research interests focus on Korean economic and business issues. He published a book in 2008 entitled, The International Business in Korea: the Evolution of the Market in the Globalisation Era which is being translated into Japanese. The latest book professor Kwon published in 2010 is entitled, the Korean Economy in Transition: an Institutional Perspective. Dr. Min Yong Lee is a visiting professor at Sookmyung Women’s University at Seoul, South Korea. Min Yong Lee (Ph.D. in International Politics, University of Maryland) served as the Dean of Academic Board at the Korea Military Academy. His research area includes North Korea’s military, energy security, and defense policy. Dr. Larry Niksch(Ph.D Georgetown University) retired from the U.S. Congressional Research Service in February 2010 after more than 43 years as a Specialist in Asian Affairs. At CRS, Dr Niksch provided information and conducted research for Congress on security and political issues related to U.S. relations with the countries of East Asia and the Western Pacific. He authored many papers on these issues and participated in numerous conferences in the United States, East Asia, and Europe. He has taught East Asian History at George Washington University. In 1986, he served as a U.S. presidential election observer in the Philippines during the historical Philippine presidential election of that year. Dr. Niksch is an Adjunct Fellow with the Institute of National Security Strategy in Seoul, Korea, and a Senior Associate with the Center for Strategic and International Studies in Washington, D.C. Dr. Kicheol Park is an associated professor at Pyeongtaek University, where he has taught Chinese Political Economy, Department of Chinese since 1998. He received his Ph.D. from the National Chengchi University, Taiwan. He has served as a Research Fellow of Association of Korean- Chinese Academy since 2006. He is author and co-author over numerous scholarly articles, and author or co-translator of several books including Insight into Korea (2010): Reform of Chinese Government (1998). His research interests have been focused on issues of Chinese diplomacy and political relations China-Korea. Dr. Yeongmi