The military demarcation line (MDL) of separation between the belligerent sides at the close of the Korean War divides North Korea from South Korea. A demilitarized zone (DMZ) extends for 2,000 meters (just over 1 mile) on either side of the MDL. Both the North and South Korean governments hold that the MDL is only a temporary administrative line, not a permanent border.

During the postwar period, both Korean governments have repeatedly affirmed their desire to reunify the Korean Peninsula, but until 1971 the two governments had no direct, official communications or other contact.

However, these initial contacts broke down in 1973 following South Korean President Park Chung Hee's announcement that the South would seek separate entry into the United Nations, and after the kidnapping of South Korean opposition leader Kim Dae-Jung--perceived as friendly to unified entry into the UN--by South Korean intelligence services. There was no other significant contact between North and South Korea until 1984.

Dialogue was renewed in September 1984, when South Korea accepted the North's offer to provide relief goods to victims of severe flooding in South Korea. Red Cross talks to address the plight of separated families resumed, as did talks on economic and trade issues and parliamentary-level discussions. However, the North then unilaterally suspended all talks in January 1986, arguing that the annual U.S.-South Korea "Team Spirit" military exercise was inconsistent with dialogue. There was a brief flurry of negotiations that year on co-hosting the upcoming 1988 Seoul Olympics, which ended in failure and was followed by the 1987 bombing of a South Korean commercial aircraft (KAL 858) by North Korean agents.

In July 1988, South Korean President Roh Tae Woo called for new efforts to promote North-South exchanges, family reunification, inter-Korean trade, and contact in international forums. Roh followed up this initiative in a UN General Assembly speech in which South Korea offered for the first time to discuss security matters with the North. Initial meetings that grew out of Roh's proposals started in September 1989. In September 1990, the first of eight prime minister-level meetings between North Korean and South Korean officials took place in Seoul. The prime ministerial talks resulted in two major agreements: the Agreement on Reconciliation, Nonaggression, Exchanges, and Cooperation (the "Basic Agreement") and the Declaration on the Denuclearization of the Korean Peninsula (the "Joint Declaration").

The Basic Agreement, signed on December 13, 1991, called for reconciliation and nonaggression and established four joint commissions. These commissions--on South-North reconciliation, South-North military affairs, South-North economic exchanges and cooperation, and South-North social and cultural exchange--were to work out the specifics for implementing the basic agreement. Subcommittees to examine specific issues were created, and liaison offices were established in Panmunjom, but in the fall of 1992 the process came to a halt because of rising tension over North Korea's nuclear program.

The Joint Declaration on denuclearization was initialed on December 31, 1991. It forbade both sides to test, manufacture, produce, receive, possess, store, deploy, or use nuclear weapons and forbade the possession of nuclear reprocessing and uranium enrichment facilities. A procedure for inter-Korean inspection was to be organized and a North-South Joint Nuclear Control Commission (JNCC) was mandated to verify the denuclearization of the peninsula.

On January 30, 1992, the D.P.R.K. finally signed a nuclear safeguards agreement with the International Atomic Energy Agency (IAEA), as it had pledged to do in 1985 when it acceded to the Nuclear Non-Proliferation Treaty (NPT). This safeguards agreement allowed IAEA inspections to begin in June 1992. In March 1992, the JNCC was established in accordance with the Joint Declaration, but subsequent meetings failed to reach agreement on the main issue of establishing a bilateral inspection regime.

As the 1990s progressed, concern over the North's nuclear program became a major issue in North-South relations and between North Korea and the U.S. The lack of progress on implementation of the Joint Declaration's provision for an inter-Korean nuclear inspection regime led to reinstatement of the U.S.-South Korea Team Spirit military exercise for 1993. The situation worsened rapidly when North Korea, in January 1993, refused IAEA access to two suspected nuclear waste sites and then announced in March 1993 its intent to withdraw from the NPT. During the next two years, the U.S. held direct talks with the D.P.R.K. that resulted in a series of agreements on nuclear matters, including the 1994 Agreed Framework (which broke down in 2002 when North Korea was discovered to be pursuing a uranium enrichment program for nuclear weapons--see below, Denuclearization of the Korean Peninsula).

At his inauguration in February 1998, R.O.K. President Kim Dae-jung enunciated a new policy of engagement with the D.P.R.K., dubbed "the Sunshine Policy." The policy had three fundamental principles: no tolerance of provocations from the North, no intention to absorb the North, and the separation of political cooperation from economic cooperation. Private sector overtures would be based on commercial and humanitarian considerations. The use of government resources would entail reciprocity. This policy set the stage for the first (and only) inter-Korean summit, held in Pyongyang June 13-15, 2000.

R.O.K. President Roh Moo-hyun, following his inauguration in February 2003, has continued his predecessor's policy of engagement with the North, though he abandoned the name "Sunshine Policy." The U.S. supports President Roh's engagement policy and North-South dialogue and cooperation. Major economic reunification projects have included a tourism development in Mt. Geumgang, the re-establishment of road and rail links across the demilitarized zone (DMZ) and a joint North-South industrial park near the North Korean city of Kaesong (see further information below in the section on the Economy).

In 2003, the D.P.R.K. joined Six-Party Talks--including the U.S., R.O.K., Russia, China, and Japan--and agreed in September 2005, at the fourth round of the talks, to a Joint Statement of Principles, in which the six parties unanimously reaffirmed the goal of denuclearization of the Korean Peninsula in a verifiable manner (see below, Denuclearization of the Korean Peninsula). The D.P.R.K. committed to abandon its nuclear weapons and programs, and the other five participants offered humanitarian and energy assistance, steps toward normalization of relations, and regional confidence-building measures.

The establishment of diplomatic relations by South Korea with the Soviet Union in 1990 and with the P.R.C. in 1992 put a serious strain on relations between North Korea and its traditional allies. Moreover, the fall of communism in eastern Europe in 1989 and the disintegration of the Soviet Union in 1991 resulted in a significant drop in communist aid to North Korea. Despite these changes and its past reliance on this military and economic assistance, North Korea continued to proclaim a militantly independent stance in its foreign policy in accordance with its official ideology of juche, or self-reliance.

Both North and South Korea became parties to the Biological Weapons Convention in 1987. (North Korea is not a member of the Chemical Weapons Convention, nor is it a member of the Missile Technology Control Regime--MTCR.)

North Korea has maintained membership in some multilateral organizations. It became a member of the UN in September 1991. North Korea also belongs to the Food and Agriculture Organization; the International Civil Aviation Organization; the International Postal Union; the UN Conference on Trade and Development; the International Telecommunications Union; the UN Development Program; the UN Educational, Scientific, and Cultural Organization; the World Health Organization; the World Intellectual Property Organization; the World Meteorological Organization; the International Maritime Organization; the International Committee of the Red Cross; and the Nonaligned Movement.

In the mid-1990s, when the economic situation worsened dramatically and following the death of D.P.R.K.-founder Kim Il Sung, the North abandoned some of the more extreme manifestations of its "self reliance" ideology to accept foreign humanitarian relief and create the possibility, as noted below, for foreign investment in the North. In subsequent years, the D.P.R.K. has continued to pursue a tightly restricted policy of opening to the world in search of economic aid and development assistance. However, this has been matched by an increased determination to counter perceived external and internal threats by a self-proclaimed "military first" policy.

During the present period of limited, extremely cautious opening, North Korea has sought to broaden its formal diplomatic relationships. In July 2000, North Korea began participating in the ASEAN Regional Forum (ARF), with Foreign Minister Paek Nam Sun attending the ARF ministerial meeting in Bangkok. The D.P.R.K. also expanded its bilateral diplomatic ties in that year, establishing diplomatic relations with Italy, Australia, and the Philippines. The U.K., Germany, and many other European countries have established diplomatic relations with the North, as have Australia and Canada.

In the September 19, 2005 joint statement issued at the end of the fourth round of Six-Party Talks, the U.S. and D.P.R.K. committed to undertake steps to normalize relations (see below, Denuclearization of the Korean Peninsula). As part of the normalization process, the two nations agreed to discuss outstanding issues, including D.P.R.K. human rights abuses, biological and chemical weapons programs, ballistic missile programs and proliferation, terrorism, and illicit activities. The D.P.R.K. and Japan also agreed to take steps to normalize relations and to discuss outstanding issues of concern, including abductions. Preliminary talks between the two nations occurred in November 2005.

The D.P.R.K. has made statements condemning terrorism. In October 2000, the U.S. and the D.P.R.K. issued a joint statement in which "the two sides agreed that international terrorism poses an unacceptable threat to global security and peace, and that terrorism should be opposed in all its forms." The U.S. and D.P.R.K. agreed to support the international legal regime combating international terrorism and to cooperate with each other to fight terrorism. However, Pyongyang continues to provide sanctuary to members of the Japanese Communist League-Red Army Faction who participated in the hijacking of a Japan Airlines flight to North Korea in 1970. The D.P.R.K. became a signatory to the Convention for the Suppression of Financing of Terrorism and a party to the Convention Against the Taking of Hostages in November 2001.