Military and Economic Power Networks, Hedging, and Cooperation on the Korean Peninsula

Is the Kim Jong-un regime genuinely pursuing a peaceful solution, to eventually give up its nuclear arsenal, after a series of summits and negotiations with the US and South Korea? We examine how military and economic power networks on the peninsula are associated with the prospect of North Korea’s denuclearization. North Korea could use its nuclear weapons program, an internal tool designed to promote national security and power, to build up power in both military and economic power networks. Drawing lessons and speculation from the literature on states’ hedging behavior, and using agent-based models, we explain that denuclearization as part of a hedging strategy would be a viable policy option for North Korea.