As international sanctions against North Korea continue, with no clear end in sight, experts are proposing that South Korea strategically use the UN Security Council’s exemption and deferral mechanism to advance inter-Korean economic cooperation.
At the first session of the “International Seminar on Future Vision for Peace Economy on the Korean Peninsula” held on Tuesday at the Westin Chosun in Seoul, Lim Soo Ho, a senior research fellow at the National Security Strategy Institute, explained that the exemption-and-deferral system allows certain exceptional activities, including humanitarian aid to North Korea, despite UN and country-specific sanctions. Lim encouraged actively exploring areas where cooperation is still possible within the sanctions framework.
Lim assessed that a complete suspension or termination of UN-level sanctions would require substantial progress in North Korea’s denuclearization. For U.S. independent sanctions to be lifted, both denuclearization completion and changes in the North Korean regime would be necessary. He concluded that realistically, expecting a suspension or end to sanctions is unlikely.
Nevertheless, Lim pointed out a crucial clause in the North Korea Sanctions Enhancement Act, one of the 14 laws governing U.S. independent sanctions, which could be utilized for development cooperation with North Korea.
This law allows for sanctions deferral for humanitarian purposes, ranging from one month to one year. Notably, promoting democratic and peaceful unification of the Korean Peninsula is classified as a humanitarian objective, potentially justifying bilateral and multilateral economic cooperation with North Korea.
Lim explained that this clause is intricately connected to U.S.-South Korea relations, inter-Korean relations, and North Korea-U.S. relations. Its broad scope allows for comprehensive political interpretation and can even apply to lower-level development cooperation initiatives.
Furthermore, Lim acknowledged the current challenges in promoting inter-Korean economic cooperation. He suggested focusing preparatory efforts on bilateral and multilateral economic cooperation led by the U.S., China, and Russia, particularly in infrastructure development.
Lim noted that North Korea, China, and Russia share common interests in developing infrastructure in the border area. If the Greater Tumen Initiative (GTI) becomes internationalized, it could pave the way for North Korea, China, and Russia-led development in border areas. He suggested that South Korea might also participate in such projects, depending on geopolitical circumstances.
The panel’s discussants unanimously agreed on the need to design policies that anticipate a prolonged sanctions environment.
Lee Jong Kyu, head of the Global and North Korean Economy Research Division at the Korea Development Institute (KDI), predicted that normalizing North Korea-U.S. relations would incrementally impact inter-Korean economic cooperation and the North Korean economy. He advised preparing step-by-step cooperation projects aligned with this trajectory to minimize confusion.
Choi Eun Joo, a research fellow at the Sejong Institute, highlighted that North Korea’s demands for initiating negotiations have escalated. From the U.S. and South Korean perspectives, the political and diplomatic costs for resuming talks have increased. She emphasized the importance of establishing a roadmap with meaningful proposals and clear linkages between rewards and actions in advance.