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South Korean Identities in Strategies of Engagement with North Korea South Korean Identities in Strategies of Engagement with North Korea: A Case Study of President Kim Dae-jung's Sunshine Policy Volume I Son Key-young A dissertation submitted in fulfilment of the requirements for the degree of Doctor of Philosophy GRADUATE SCHOOL Of EAST ASIAN STUDIES UNIVERSITY OF SHEFFIELD June 2004 Abstract This dissertation is a theoretically grounded empirical study aimed at shedding light on the multiple dimensions of South Korean President Kim Dae-jung's Sunshine Policy of engaging North Korea. It questions the ontological viability of conventional strategies and theories of engagement and produces a framework of comprehensi ve engagement based on realist, liberal and, most importantly, constructivist approaches. The study focuses on identifying the new tools of engagement employed by South Korea's policy elites, who created a social environment for South Koreans' shift of identities vis-a-vis North Korea in the course of implementing this engagement policy. To support the thesis of a momentous shift in identities as a result of the Sunshine Policy, this study uses a wide range of interviews with policy e,lites and sets of opinion polls published by news organizations and government agencies, while at the same time analyzing the policy from a theoretical and historical perspective. In order to provide concrete evidence of the identity shift, this dissertation analyzes three major policy issues during the Kim administration: North Korea's improvement of diplomatic relations with Western powers; the Hyundai Business Group's Mt. Kumgang tourism project and its link to the inter-Korean summit in June 2000; and North Korea's revelation of a nuclear weapons programme in October 2002. The key research findings of this study are as follows: first, the Sunshine Policy, implemented by South Korea's policy elites, who projected North Korea as a 'partner' or a 'brother', enabled a majority of South Koreans to develop positive identification with the South's enemy, as defined by the National Security Law; second, the policy played a significant role in preventing crises and maintaining the political status quo on the Korean Peninsula; and third, the policy laid the groundwork for a new era of inter­ Korean economic cooperation and integration. Contents Volume I Pages Chapter One. Introduction 1. Introduction 1 2. Research Questions and Objectives 4 3. Hypotheses 6 4. Approach, Methodology and Contribution 8 5. The Structure of the Dissertation 11 Chapter Two. Containment and Engagement: Literature Review 1. Introduction 14 2. Containment and Engagement in the Cold War Period 15 2.1. Historical Overview of Containment 15 2.2. Theories of the Cold War 22 2.2.1. Realism and the Cold War 23 2.2.2. Liberalism and the Cold War 25 2.2.3. Constructivism and the Cold War 29 3. Containment and Engagement in the Post-Cold War Period 32 3.1. 'Rogue States' 34 3.2. Economic Sanctions 37 3.3. Strategies of Containment and Engagement 39 3.3.1. US Policies vis-a-vis 'Rogue States' 40 3.3.2. Cases of Successful Engagement 43 4. Conclusion 49 11 Chapter Three. The Concept of Comprehensive Engagement: Theoretical Framework 1. Introduction 52 2. Three Levels of Comprehensive Engagement 53 2.1. The Domestic Level: identity shifts 57 2.1.1. Ideas 58 2.1.2. Identity Shifts 59 2.1.3. The Life Cycle of Identity Norms 62 2.2. The Inter-State Level: the status quo 72 2.2.1. A Constructivist Worldview 74 2.2.2. Tools for Maintaining the Status Quo 82 2.3. The Global Level: integration 90 2.3.1. Integration Theories 91 2.3.2. A Constructivist Approach to Integration 93 2.3.3. Tools for Integration 95 3. The Goals of Three-Level Engagement 98 3.1. National Goals: institutionalization and federalization 98 3.2. International Goals: resocialization 99 4. The South Korean Decision-Making Process 101 4.1. Actors 101 4.2. Information Processing 106 4.3. A South Korean Model of Crisis Prevention 108 5. Conclusion 111 Chapter Four. Historical Overview of the Korean Divide: structure and norms 1. Introduction 112 2. North Korea: structure and norms 114 2.1. North Korea and Structure 114 2.1.1. North Korea's Rise 115 2.1.2. North Korea's Decline 116 2.2. North Korea and Norms 119 2.2.1. International Norms 119 111 2.2.2. Domestic Norms 122 3. South Korea: structure and norms 126 3.1. South Korea and Structure 127 3.2. South Korea and Norms 131 4. Conclusion 158 Chapter Five. Case Study I: The Sunshine Policy and North Korea's External Relations 1. Introduction 159 2. Ideational Changes and Policy Shifts in South Korea 160 2.1. Ideas of Cross-Recognition by the Four Powers 161 2.2. Stumbling Blocks for North Korea's Resocialization 163 2.3 Identity Shifts and North Korea's Window of Opportunity 166 3. North Korea's Bilateral Relations 167 3.1. The United States and North Korea 168 3.1.1. The United States: an apathetic superpower 168 3.1.2. President Clinton's Policy of Engagement 170 3.1.3. Findings 184 3.2. Japan and North Korea 185 3.2.1. Japan: the pendulum swings from deterrence to dialogue 187 3.2.2. Prime Minister Koizumi's Policy of Engagement 193 3.2.3. Findings 207 3.3. The European Union and North Korea 210 3.3.1. Europe: a new role as supporting player 211 3.3.2. The EU's Policy of Engagement 213 3.3.3. Findings 221 4. Conclusion 223 IV Volume II Chapter Six. Case Study II: Hyundai's Mt. Kumgang Tourism Project 1. Introduction 224 2. Background 226 3. Three Levels of Comprehensive Engagement 228 3.1. The Domestic Level: identity shifts 229 3.1.1. Ideas 229 3.1.2. Identity Shifts 233 3.1.3. Findings 240 3.2. The Inter-State Level: the status quo 241 3.2.1. Deterrence 242 3.2.2. Limited Sanctions 246 3.2.3. Political Dialogue 250 3.2.4. Findings 258 3.3. The Global Level: integration 259 3.3.1. Bribes 260 3.3.2. Large-Scale Investment 272 3.3.2.1. The Mt. Kumgang Project 273 3.3.2.2. The Kaesong Industrial Park Project 280 3.3.3. Infrastructure 283 3.3.4. Findings 287 4. The Outcome of Three-Level Engagement 288 4.1. Institutionalization 288 4.2. Federalization 290 5. Conclusion 292 Chapter Seven. Case Study III: North Korea's Nuclear Weapons Programmes 1. Introduction 294 2. North Korea's Nuclear Ambitions: historical overVIew 296 v 2.1. Nuclear Rivalry 296 2.2. The First Nuclear Crisis 300 2.3. Kumchang-ri Underground Site 303 2.4. Highly Enriched Uranium Programme 304 3. Three Levels of Comprehensive Engagement 307 3.1. The Domestic Level: identity shifts 308 3.1.1. Ideas 308 3.1.2. Identity Shifts 320 3.1.3. Findings 327 3.2. The Inter-State Level: the status quo 328 3.2.1. Deterrence 328 3.2.2. Limited Sanctions 331 3.2.3. Political Dialogue 335 3.2.4. Findings 343 3.3. The Global Level: integration 344 3.3.1. Humanitarian Aid 347 3.3.2. Infrastructure 348 3.3.3. Findings 350 4. Conclusion 351 Chapter Eight. Conclusion 1. Introduction 352 2. The Legacies of the Sunshine Policy 353 3. The Validity of the Three Hypotheses 358 4. Contributions to International Relations Scholarship 359 5. Limitations and Areas for Further Research 361 Appendices 364 References 420 VI Acknowledgements I thank, first and foremost, my supervisor, Professor Glenn Hook, for his incessant encouragement and benign pressure. He showed me a short cut to learning. I am also deeply grateful to the Korean studies faculty, Professor James Grayson, Dr. Lee Hyang­ jin and Dr. Judith Cherry, for providing me with various types of support and teaching opportunities. My special thanks go to the many good people I have met in Sheffield: Park Chang-gun and Dr. Kim Sung-hyoung for their friendship; my PhD friends Yukiko Miyagi, Komako Hokama, Kuniko Ishiguro, Raymond Yeap, Dr. Darren Ashmore, Lindsay Black, Joanna Hwang, Kim Young-mi, Utpal Vyas, and Bhubhindar Singh, for their warmth; Dr. Jim Foley for our regular tea breaks; and librarian Gill Goddard for her kindness. I am also thankful to Cathy Everard, Choe, Young-min and Dominic Holland for proofreading my drafts. I am grateful to the British Council, the Overseas Research Students Awards Scheme and the School of East Asian Studies for financial support. Lastly, I am immensely indebted to the wonders of British nature, especially the gardens of Halifax Hall and Whiteley Woods. Note on the Text All East Asian names are gIven in their original form, that is, the family name is followed by the given name. In romanizing Korean names and words, this dissertation follows the modified McCune-Reischauer system, except in cases where a different method has been established, such asjuche and Syngman Rhee. For positions and titles of government officials cited in the text, this dissertation uses those held at the time of the event instead of the present one. VII Acronyms ABM Anti-Ballistic Missile ADB Asian Development Bank AF Agreed Framework AFP Agence France-Presse ANEC Association for National Economic Cooperation AP Associated Press APEC Asia-Pacific Economic Cooperation ARF ASEAN Regional Forum ASEAN Association of Southeast Asian Nations ASEM Asia-Europe Meeting BAI Board of Audit and Inspection CFSP Common Foreign and Security Policy CRS Congressional Research Service DPRK Democratic People's Republic of Korea EU European Union GDP Gross Domestic Product GNP Grand National Party HEU Highly Enriched Uranium HFO Heavy Fuel Oil HMM Hyundai Merchant Marine IAEA International Atomic Energy Agency IFANS Institute of Foreign Affairs and National Security IFES Institute for Far Eastern Studies IMF International Monetary Fund IR International Relations KAPPC Korean Asia-Pacific Peace Committee KDB Korea Development Bank KDI Korea
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