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# 1, 1997

RUSSIA-KOREA: THE TIME OF MUTUAL DISAPPOINTMENT

Larisa Zabrovskaya

We have to admit that Russia’s relations with the countries of the Korean peninsula are being shaped without any skill in political activity.
The unexpected, sharp shift in relations between Russia and the two Koreas in the early 1990s was sensational not only for Asia but also for the world community. The Soviet Union had placed itself in a doubtful and ambiguous position. Russia’s Ministry for Foreign Affairs was incapable of finding an appropriate way to normalize relations with South Korea and to maintain them with North Korea. Russian and North Korean communists keep calling it «treachery», but the point has to do with the objectives pursued by both sides.
In 1990, during the visit to Moscow of Roh Tae Woo, then the President of South Korea, the need was emphasized of conducting efficient inter-Korean dialogue to stop the political and military confrontation between the two Koreas. South Korea hoped the USSR as DPRK’s ally would restrain North Korea’s policy of hostility toward Seoul.
South Korean business circles counted on their monopoly over the development of fuel and energy resources in Siberia and the Far East to give South Korea a second boost. (The first one had succeeded in the 1970s due to South Korea’s active participation in the programs for the development of Middle East. South Korean experts were engaged in oil production to provide the flow of oil and dollars to the Republic of Korea.)
Hyundai Corporation had made greatest progress in Russia. In January, 1988, the president of the corporation and the Soviet government had agreed on the establishment of the Soviet-South Korean Committee for Cooperation. Hyundai Corporation was among the first to create joint ventures in Russia. In August, 1989, an agreement was signed on logging timber in Primorsky Krai.
After President Roh Tae Woo’s visit to Moscow, it was announced that the Soviet Union would transfer 281 up-to-date technologies to the Republic of Korea for commercial implementation, including know-how in nuclear fusion.
South Korean financial circles made a decision to invest $ 9.1 billion in Russia. The South Korean government had worked out the program for economic cooperation and loans to the amount of $ 3 billion.
But after the events in August 1991 and the Soviet Union’s dissolution the relations became uncertain and restrained, and the financial subsidies for Russia were suspended. To successfully develop the Siberian deposits, it was necessary first to make an investment in infrastructure, which was highly conjectural during the political and economic instability in Russia. Specific Russian features - bureaucracy and the absence of a business environment--also had an adverse effect. Several investment projects were curtailed.
The Russian side made desperate efforts to save the situation. It even suggested South Korea conduct joint military maneuvers. It was evident that Russian-South Korean military cooperation actually provoked DPRK to commit dangerous and rash actions. North Korea undertook trials of long-range missiles able to reach any point in the south of the Korean peninsula, Primorsky Krai, Hokkaido, and Honsu Islands. Thus, after having lost the influence on DPRK, Russia was not regarded as a mediator in lessening the tension between Seoul and Pyongyang. The threat arose to disturb the fragile balance of power on the Korean peninsula that was maintained during the last decade.
Speeding up military links between Russia and South Korea has strengthened the position of the Republic of Korea and impeded the dialogue between the two Koreas on peaceful unification. This may increase Pyongyang’s readiness to unleash a civil war. The recent tragic events with the submarine and the death of a South Korean diplomat testify to confrontation.
We can draw the conclusion that the hopes for the long-awaited beneficial relations cherished by the both countries have not come true. Major causes are as follows: the unstable inner political and economic situation in Russia, an unprofitable climate for foreign investment, and the shortsighted policy of the Russian Ministry for Foreign Affairs concerning military relations. Central and local authorities gave little attention to Russian Koreans (over 100,000 persons) who might have made great contributions to furthering business cooperation. Many opportunities have been lost.

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