Cheong Wa Dae Cautious About Future of Denuke Talks

Cheong Wa Dae is taking a cautious position on leaders of North Korea and the U.S. failing to reach an agreement on North Korea's denuclearization in Hanoi, Thursday. The failure to reach a deal on denuclearization steps and corresponding measures is likely to keep inter-Korean economic projects on hold.

The outcome of the summit has also posed uncertainty on North Korean leader Kim Jong-un's visit to Seoul, which was expected to take place in coming weeks. The Moon administration had hoped that positive developments in the North's denuclearization and its relations with the U.S. would create a favorable mood for Kim's visit to Seoul.

The government hoped for the U.S. to grant partial alleviation of economic sanctions on the North for its denuclearization steps, to enable inter-Korean economic projects such as reopening the Gaeseong Industrial Complex and resuming tours to Mount Geumgang in the North. However, the failure to reach an agreement signals that sanctions will not be eased for the time being. Inter-Korean projects, put on hold for months due to the lack of progress of the North's denuclearization, will likely continue to be deferred.

The President had cleared his schedule for Thursday, to keep a keen eye on the summit between Kim and Trump.

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