Watch developments in Korea

by Kenneth Rijock

Particularly bellicose announcements, made by the government-controlled press. from the Democratic Peoples' Republic of Korea (DPRK), more commonly known as North Korea, could be a sign that the deteriorating relations between it and South Korea's government will cause North Korea to undertake some form of military action that will increase country risk. Compliance officers at financial institutions whose clients have ongoing business matters with Korean companies, or businesses in Korea, should regularly monitor the unfolding situation.

Some Korea watchers are especially worried that a recent television announcement, detailing the presence of "weaponised" plutonium in the DPRK, was made by a military officer. Reportedly, these media announcements are generally made by civilian reporters. There have also been anti-American statements reported as having been made by North Korean media.