Soviet-South Korea economic cooperation following rapprochement

The establishment of diplomatic ties between the Soviet Union and the Republic of Korea appears to be not only a cornerstone for peace-keeping in the Korean peninsula but also a catalyst toward improving economic cooperation between the two countries. Unlike other advanced countries, Korea has been actively investing in the Soviet Union since Soviet-Korean rapprochement. But events have overtaken the pace of reform in the Soviet Union. Multiple Soviet problems such as the restructuring of the Union and Republic governments, reorganization of the New Economic Community, and severe discord within the political leadership regarding the approach to reform are entangled with power struggles between the center and the republics. The outcomes of democratization and marketization in the Soviet Union are not certain. Korea is deeply concerned about the success or failure of the Soviet economy because this will influence the extent to which the Korean economy will benefit or suffer.