North Korea Update: Possible Nuclear Test and Economic Trouble On The Horizon

There are growing indications that North Korea is moving forward with plans for its first nuclear weapons test in over four years. Tensions on the Korean Peninsula have been on the rise lately, though this has been underreported in light of the war in Ukraine. Last week, Kim Jong Un promised to continue development of its nuclear weapons “at the fastest possible speed.” This has prompted concerns that a test will be scheduled to disrupt the late May visit of US President Joe Biden to South Korea. Chinese and South Korea diplomats met in Seoul on Tuesday with China pledging to play a ‘constructive role’ in attempting to get North Korea to resume negotiations.

South Korea, with a new administration taking power on 10 May, is quite interested in deterring North Korea from escalating the situation. One element that appears to be coaxing the North along the slippery path it’s on at present is Russia. Kim Jong Un and Vladimir Putin have forged close ties over the years and the North is one of the few nations supporting Russia in its war without misgivings. In exchange for this loyalty, Russia could return the favor by blocking a UN effort to impose severe sanctions on North Korea if it does move forward with a nuclear test.

Having said this, it must be mentioned that the global economic fallout from Russia’s adventure in Ukraine and the recent COVID-19 outbreaks in China could hit the North Korean economy especially hard. Supply chain issues now coming into play will exacerbate food shortages. Inflation will also play a greater role. Food prices in North Korea often mirror global prices. With food prices rising around the world, the North’s prices are expected to do the same in the coming weeks, taking the country’s economic issues from bad to worse in the process.