N Korea late March stated that Libya’s 2004 dismantling of nuclear weapons program made it vulnerable to military intervention by West; comment seen by analysts as reinforcement of North’s refusal to end its nuclear program. Statement comes despite N Korean official’s 15 March comment to Russian FM that North “ready to discuss nuclear enrichment”. S Korean FM visited China 29 March for talks on N Korea’s nuclear enrichment program; S Korea and U.S. have previously called on China to support UN condemnation of program, but Beijing 25 March blocked UNSC adoption of expert panel report. South, North Korean specialists 29 March discussed joint research project into volcanic activity on N Korea’s Mt Paektu; first attempt at dialogue since Feb failed military talks. Pyongyang 27 March accepted repatriation of 27 out of 31 citizens whose boat drifted into S Korea last month; 4 will stay in South. N Korea’s food crisis continuing to worsen following shrinking international aid, harsh winter, foot-and-mouth disease. UN report late-month said 6 million (25%) of population at risk in coming weeks.

Relations with S Korea remained strained as first inter-Korean dialogue since Nov shelling of Yŏnp’yŏng Island broke down 9 Feb, following failure to reach consensus on agenda for higher-level talks. P’yŏngyang reacted angrily to breakdown of talks, claiming South made “unreasonable” demands, not interested in dialogue, trying to derail resumption of 6-party talks; N Korean official news agency 9 Feb reported nation no longer willing to participate in military talks with Seoul. S Korea, U.S. 28 Feb began annual large-scale military exercises, prompting harsh condemnation, warning of “all-out attack” from P’yŏngyang. South late month dropped leaflets in North spreading news of uprisings in the Arab world; P’yŏngyang 27 Feb threatened to open fire across border in retaliation. Satellite images published mid-month show completion of North’s second long range missile launchpad near northwest border with China; reports suggest site more sophisticated than first. Tunnelling at nuclear test site reportedly continues. UN panel report late Jan said N Korea almost certainly has more undisclosed nuclear facilities; China reportedly said will block report from being published and sent to full Council.

Tensions eased on Korean peninsula as Seoul, Pyongyang shifted towards talks. S Korea 20 Jan agreed to hold working-level military talks with North, scheduled for 8 Feb, following series of conciliatory gestures by Pyongyang, including 5 Jan statement calling for “unconditional and early” talks. S Korean President Lee signalled reluctance to reengage with N Korea, saying North appears to be following old strategy of provoking South then requesting talks and aid; indicated only willing to hold higher-level talks when North takes responsibility for Nov shelling of Yŏnp’yŏng Island, March sinking of S Korean warship. Washington called prospect of new talks “a positive sign”, but said North has “a ways to go” before resumption of 6-party talks. Earlier in month U.S. Defence Secretary Gates warned N Korean missile development could pose direct threat to U.S. within five years. In visit to U.S., Chinese President Hu agreed on joint statement expressing concern over DPRK’s uranium enrichment programme. N Korea’s dire humanitarian situation reportedly worsened due to Jan outbreaks of foot-and-mouth disease.

Tensions on peninsula remained high as S Korea intensified military drills following Nov shelling of Yŏnp’yŏng Island by N Korea. Tensions peaked as Seoul 20 Dec held live-fire artillery drills on Yŏnp’yŏng Island, backed by U.S.; N Korea 18 Dec threatened “brutal consequences beyond imagination” if drills went ahead, 20 Dec said artillery exercise “not worth a response”. Russia, China 18 Dec called on Seoul to cancel 20 Dec drills, but Seoul refused to back down amid domestic pressure to stand firm against North. 19 Dec emer- gency meeting of UNSC failed to agree on common statement, with China opposed to criticising Pyongyang. Seoul 22 Dec launched 3-day naval drill in Sea of Japan, 23 Dec held largest drills ever near North-South demilitarised zone. Pyongyang 23 Dec called exercises a preparation for war, claimed ready for “sacred war of justice” using nuclear deterrent; 1 Jan delivered New Year message calling for “lasting peace” but warning against war. U.S. Governor Bill Richardson made private visit to N Korea 17-21 Dec aimed at reducing tensions on peninsula, hours before 20 Dec drills reported Pyongyang willing to make “concessions” toward reopening 6-party nuclear talks, including to allow international nuclear inspectors into Yongbyon nuclear complex, sell 12,000 uranium fuel rods to S Korea thus removing potential bomb-making material from North.

2 S Korean civilians and 2 marines killed, 20 injured 23 Nov as N Korea fired dozens of artillery shells at Yeonpyeong Island where S Korea was conducting military drills. Strike followed warning hours earlier by Pyongyang to South to halt drills. China called on both sides “to keep calm and exercise restraint”; Russia, Japan, U.S. and UNSG Ban condemned attack. S Korea 25 Nov announced dramatic troop increase on 5 islands close to N Korea. Pyongyang threatened further military action if Seoul continues on “path of military provocation”. S Korean defence minister resigned same day, Seoul announced new rules of engagement for future incidents with N Korea. S Korea and U.S. 28 Nov began combined military exercises in Yellow Sea with U.S. aircraft carrier, several warships. S Korea same day fired artillery shell towards south side of DMZ, immediately notified North it was “accidental”. China 25 Nov expressed “concern” over combined drills, 28 Nov proposed “emergency consultations” by representatives of 6-party talks. Reports emerged 20 Nov N Korea has built uranium enrichment facility with potential to produce nuclear weapons; N Korea claims facility for civilian nuclear power. Seoul 17 Nov denied N Korea’s late Oct request for food and fertiliser aid. Further inter-Korea talks scheduled for 25 Nov on regularising family reunions cancelled.

Kim Jong-un confirmed as heir apparent to leader Kim Jong-il in first official comment on succession by senior official 8 Oct. N Korea and S Korea 1 Oct agreed to restart family reunion program beginning with 100 families late Oct; 17 Oct reopened aviation hotline between international airports, 1 of 3 hotlines severed in May following sinking of S Korean naval vessel. S Korea 26 Oct sent first humanitarian food shipment to North since 2008; Pyongyang 27 Oct requested further food, fertiliser aid. N Korea 16 Oct announced it is “ready” to resume 6-party nuclear disarmament talks; senior S Korean official 20 Oct said South is open to resuming talks if Pyongyang pledges to honour 2005 deal on nuclear disarmament. Represents possible softening of Seoul’s previous position demanding North admit responsibility for March sinking of naval ship. S Korea for first time 14 Oct fully participated in Proliferation Security Initiative hosting 4-country naval drills; N Korea 16 Oct denounced act as “open declaration of war”. N and S Korean troops exchanged fire across border 29 Oct, no injuries; first cross-border shooting on land since 2007.

Easing in tensions as first inter-Korean military talks in almost 2 years held 30 Sept however negotiations stalled over disagreements about March sinking of S Korean naval ship. N Korea 7 Sept released 7-member crew of S Korean fishing boat seized 8 Aug for illegal fishing; 11 Sept proposed discussions on resumption of family reunion program. N Korea 28-29 Sept held Workers Party of Korea conference, first major gathering since 1980; Kim Jong-Un, youngest son of leader Kim Jong-Il, announced as vice-chairman of Central Military Commission, reportedly confirming him as heir apparent. Seoul 13 Sept released report into March ship sinking, reaffirmed May interim report that ship sunk by N Korean torpedo; N Korea denies. At fifth N Korea-UN Command meeting 16 Sept N Korea proposed joint investigation with U.S. into March sinking of ship. U.S. Special Envoy Bosworth 15 Sept said U.S. wants evidence N Korea will take negotiations seriously before 6-party talks can resume; N Korean Vice FM Pak 29 Sept told UNGA needs to strengthen nuclear deterrent because of threat from U.S.

Tensions increased on peninsula as South Korea held its largest ever anti-submarine drill 5-9 Aug near disputed sea border; in response North Korea (NK) 9 Aug fired some 130 shells near Northern Limit Line (NLL); about 30 shells landed south of NLL. U.S. criticised actions as “chest-thumping”; NK also seized 8 Aug South Korean fishing boat for allegedly poaching in exclusive economic zone. South Korea and U.S. held 11 day combined military exercise from 16 Aug, NK 15 Aug threatened “merciless counterblow”. Despite strained relations South Korean President Lee in 15 Aug Liberation Day speech proposed 3-stage unification process; North’s Committee for Peaceful Reunification 17 Aug rejected proposal as “ridiculous rhetoric”. NK official news agency 19 Aug said govt had reached “full consensus” with China on resumption of 6-party talks on nuclear arms program following visit by China’s special envoy on Korean Peninsula affairs; South Korea and U.S. want NK to admit responsibility for March sinking of South Korean naval ship before considering resumption of talks. NK and UN Command 10 Aug held 4th round of talks on sinking of Cheonan. U.S. 30 Aug expanded economic sanctions targeting NK leadership; South Korea welcomed measures but offered $8.4mn flood aid to NK, first large scale aid since March sinking of SK ship.

UNSC 9 July issued presidential statement condemning “attack which led to the sinking of the Republic of Korea naval ship Cheonan”, but avoided directly blaming N Korea. NK Permanent Secretary to UN hailed UNSC statement as “great diplomatic victory” for Pyongyang. U.S.-led UN Command and NK met 3 times in DMZ; UN called sinking violation of 1953 armistice. U.S. Sec State Clinton, Sec Defense Gates travelled to S Korea 21 July in show of solidarity, announced new sanctions against NK targeting sale or purchase of arms used to fund regime’s nuclear activities. Gates said 25-28 July U.S.-S Korea naval drills would send “strongsignal”of deterrence; NK National Defence Commission vowed 24 July to respond with “powerful nuclear deterrence” and “sacred war”. Chinese FM Yang 25 July repeated call for restraint from all sides. S Korea FM Yu 18 July said Seoul not prepared to return to 6 Party Talks, suspects NK may use talks to divert attention from sinking of Cheonan.

South Korea 15 June referred N Korea to UNSC over March sinking of S Korean ship. NK 16 June said its military would respond if rebuked by UNSC. S Korea 1 July rejected NK proposal for direct military talks on incident. 16 June extended sanctions on NK for further year, citing continued threat of NK nuclear program. China 8 June lodged formal diplomatic protest after NK border guards shot and killed 3 Chinese citizens on border. NK Supreme People’s Assembly held rare 2nd session 7 June; appointed Chang Sŏng-t’aek, brother-in-law of NK leader Kim Jong-il, as vice-chairman of National Defense Commission; govt 27 June announced it will choose new party leaders later in year; both moves seen as clearing path of succession for Kim Jong-il’s son. S Korea 1 July jailed 2 NK spies to 10 years in prison for April plot to kill high-ranking NK defector.