Vol. 14, No. 2, 2005 International Journal of Korean Unification Studies Published biannually by the Korea Institute for National Unification Publisher Young-Kyu Park Editor-in-chief Young-Ho Park Editors Seong-Whun Cheon, Jin-Wook Choi, Moon-Young Huh Kyu-Ryoon Kim, Suk Lee Assistant Editor Mi-Kang Kim EDITORIAL ADVISORY BOARD William Drennan (Formerly) United States Institute of Peace, USA L. Gordon Flake The Maureen and Mike Mansfield Foundation, USA Young Whan Kihl Iowa State University, USA Ming Lee National Chengchi University, Taiwan Zhong Wei Lu China Institute of Contemporary International Relations, China Marcus Noland Institute for International Economics, USA Masao Okonogi Keio University, Japan Edward A. Olsen Naval Post-Graduate School, USA Han Shik Park University of Georgia, USA Scott Snyder Asia Foundation, USA Hideshi Takesada National Institute for Defense Studies, Japan Mikhail L. Titarenko Institute of Far Eastern Studies, Russia For information regarding manuscript submission and subscription, please feel free to contact the following address: International Journal of Korean Unification Studies Korea Institute for National Unification 535-353 Suyu 6-dong, Kangbuk-gu, Seoul 142-887, Republic of Korea TEL: (82-2) 9012 658 FAX: (82-2) 9012 541 E-Mail: [email protected] Homepage: http://www.kinu.or.kr Annual Subscription Rates (two issues) Domestic (individual & institution) 20,000 Won Overseas (individual & institution) US$30 (by airmail) * The rates are subject to change without notice. ISSN 1229-6902 Publication Date: December 31, 2005 Copyright©2005 by the Korea Institute for National Unification, Seoul, Korea Printed by Neulpum (TEL: (82-2) 313 5326 FAX: (82-2) 2275 5327) Vol. 14, No. 2, 2005 International Journal of Korean Unification Studies KINU www.kinu.or.kr International Journal of Korean Unification Studies CONTENTS 2005 Vol. 14, No. 2 Inter-Korean Relations in Historical Perspective Charles K. Armstrong ······· 1 How South Korean Means Support North Korean Ends: Crossed Purposes in Inter-Korean Economic Cooperation Hazel Smith ····· 21 The Transformation of Class Structure and Class Conflict in North Korea Jae-Jean Suh ····· 52 North Korea Stressed: Life on the Hamster Wheel Alexandre Y. Mansourov ····· 85 Rising Powers, Offshore Balancers, and Why the US-Korea Alliance is Undergoing Strain David C. Kang ··· 115 A Regional Play of the Global Game: China’s Korea Policy and the Sino-American Relationship Fei-Ling Wang ··· 141 An Active Japanese Foreign Policy Impeded by a Frustrated Public in the Post-Cold War Era Yoneyuki Sugita ··· 171 Contributors Charles K. Armstrong is an Associate Professor of History and Director of the Center for Korean Research at Columbia University in New York City. He was educated at Yale University, the London School of Economics, and the University of Chicago, and specializes in modern Korean history and the international history of East Asia. His most recent books include The North Korean Revolution, 1945-1950 (Cornell University Press, 2003), Korean Society: Civil Society, Democracy, and the State (Routledge 2002; second edition, forthcoming 2006), and Korea at the Center: Dynamics of Regionalism in Northeast Asia (M.E. Sharpe, 2005). He has pub- lished numerous articles on Korean history, politics, and culture, and is a frequent commentator in the US and international media on contemporary Korean, East Asian, and Asian-American affairs. Hazel Smith is a Professor of International Relations and Director of the MA programme in International Relations at the University of Warwick, UK. She received her PhD from the London School of Economics in International Relations and was a Fulbright visiting scholar at Stanford University. She worked as a Programme Adviser for the UN WFP in the DPRK and was a visiting Jennings Randolph Senior Fellow at the United States Institute of Peace. Dr. Smith has worked on the DPRK for fifteen years, where she has been a regular visitor since 1990, and has also completed work for UNICEF, UNDP, the UN WFP, and CARITAS. Her most recent books are European Union Foreign Policy: What it is and what it Does (London: Pluto, 2002) and Hungry for Peace: International Security, Humanitarian assistance and Social Change in North Korea (Washington, DC: USIP, 2005). She has been interviewed frequently by the international media, including BBC, KBS, CBS’s 60 Minutes, and ABC’s Nightline. Jae-Jean Suh is a Senior Research Fellow at the Korea Institute for National Unification, Seoul, Korea. He received his BA in Sociology from Seoul National University, and MA and PhD in Sociology from the University of Hawaii. After joining KINU he served as directors of the Division of North Korean Studies, Division of Unification Policy Studies, and the Center for North Korean Human Rights Studies. His research interests are socio- logical analysis of North Korean society. He is the author of numer- ous books including Second Society in North Korea (Seoul: Nanam Publisher, 1995), Social Psychology of North Korean Residents (Seoul: KINU, 1999), System Change after July 1 Measure in North Korea (Seoul: KINU, 2004), and Betrayal of Juche Thoughts (Seoul: Pakyoungsa, forthcoming 2006). He is al- so the co-author of North Korea in World System Perspective (Seoul: Hwang Gum Al, 2004). Alexandre Y. Mansourov is an Associate Professor of the Department of Regional Studies at the Asia-Pacific Center for Security Studies. He is a specialist in Northeast Asian security, politics, and econom- ics, focusing primarily on the Korean Peninsula. Dr. Mansourov received his PhD in Political Science from Columbia University in New York. He edited three books, A Turning Point: Democratic Consolidation in the ROK and Strategic Readjustment in the US-ROK Alliance (Honolulu: APCSS, 2005), Bytes and Bullets: Information Technology Revolution and National Security on the Korean Peninsula (Honolulu: APCSS, 2005), and The North Korean Nuclear Program: Security, Strategy, and New Perspectives from Russia (New York: Routledge, 2000), as well as publishing numer- ous book chapters and academic articles on Korean and Northeast Asian affairs. David C. Kang is an Associate Professor of Government, and Adjunct Associate Professor and Research Director at the Center for International Business at the Tuck School of Business at Dartmouth. He is finishing a book on how China’s rise is affecting regional politics in East Asia. Dr. Kang is the author of Crony Capitalism: Corruption and Development in South Korea and the Philippines (Cambridge University Press, 2002), and is also the author of Nuclear North Korea: A Debate on Engagement Strategies (Columbia University Press, 2003), which he co-authored with Professor Victor Cha. He has published scholarly articles in jour- nals such as International Organization, International Security, Comparative Politics, International Studies Quarterly, and Foreign Policy. Professor Kang is a member of the editorial boards of Political Science Quarterly, Asia Policy, IRI Review, Business and Politics, and the Journal of International Business Education. For 2005-2006, he is a visiting Associate Professor at Stanford University. He received an AB with honors from Stanford University and his PhD from Berkeley. Fei-Ling Wang is a Professor of the Sam Nunn School of International Affairs at the Georgia Institute of Technology in Atlanta. Professor Wang received his PhD from the University of Pennsylvania. His most recent books are Organizing through Division and Exclusion: China’s Hukou System (Stanford University Press, 2005) and China Rising: Power and Motivation in Chinese Foreign Policy (co-editor, Rowman & Littlefield, 2005). Dozens of his articles have appeared in journals and newspapers such as The China Quarterly, Journal of Contemporary China, Pacific Affairs, The Washington Quarterly, and International Herald Tribune. He re- ceived several grants and fellowships including, in 2005, a Fulbright Senior Lecturership at Yonsei University and a Council on Foreign Relations-Hitachi Fellowship at the University of Tokyo. Yoneyuki Sugita is an Associate Professor of American History at Osaka University of Foreign Studies. He received his PhD in American History at the University of Wisconsin-Madison in 1999. His research interests are US-Japan relations and security in Northeast Asia. His major works in English include The Selling of 9/11: How a National Tragedy Became a Commodity (New York: Palgrave Macmillan, 2005), Pitfall or Panacea: The Irony of US Power in Occupied Japan, 1945-1952 (New York: Routledge, 2003), Trans-Pacific Relations: America, Europe, and Asia in the Twentieth Century (co-editor, New York: Praeger, 2003), and Beyond the Line: Joseph Dodge and the Geometry of Power in US-Japan Relations, 1949-1952 (co-author, Okayama: University Education Press, 1999), as well as publishing numerous articles in US-Japan relations and security in Northeast Asia. International Journal of Korean Unification Studies Inter-Korean Relations in Historical Perspective Charles K. Armstrong Abstract From the early 1970s onward, inter-Korean relations have moved fitfully and gradually toward greater contact and mutual recognition, a process which has accelerated since the end of the 1990s. As Korean division and inter-Korean conflict were products of Great Power politics and the Cold War, movement in inter-Korean relations was largely the result of changes in Great Power relations during the Cold War period. However, since the end of the Cold War, the major impetus in inter-Korean