Sanctions have been a key part of US and international policy toward North Korea since the Korean War. In more recent decades, sanctions have been used to deter North Korea from pursuing nuclear weapons and ballistic missiles programs. This report describes the impact sanctions have had on North Korea and examines the question of whether a different approach—one focused on sanctions relief and removal—might better facilitate long-term peace and stability on the Korean Peninsula.

Factory workers operate sewing machines at a shoe factory in Wonsan, North Korea, on June 22, 2016. (Photo by Wong Maye-E/AP)
Factory workers operate sewing machines at a shoe factory in Wonsan, North Korea, on June 22, 2016. (Photo by Wong Maye-E/AP)

Summary

  • As North Korea’s nuclear weapons and ballistic missile programs have advanced, the international community has increasingly used both multilateral UN sanctions and unilateral sanctions by individual countries to exact a cost and compel Pyongyang to reach a negotiated solution.
  • Although sanctions appear to be effective in curtailing Pyongyang’s licit income generation, other metrics suggest they are not as effective in changing its behavior. 
  • Developing a process for sanctions relief and removal will be one of the most complex issues in negotiating the dismantlement of North Korea’s nuclear weapons programs. Without a credible and acceptable pathway for effective sanctions relief, North Korea will have minimal incentive. 
  • At the same time, the international community must maintain sufficient economic leverage through sanctions to ensure that Pyongyang fulfills its dismantlement commitment.
  • Negotiators should consider starting with limited interim agreements. If those initial agreements are successful, the parties should pursue more comprehensive negotiations.
  • A viable long-term agreement will also require support from Congress. The administration should work closely with Congress throughout the negotiation process and submit legislation to codify any new agreement and remove any US sanctions that conflict with it.

About the Report

This report examines various pathways and challenges related to providing multilateral sanctions relief to North Korea as part of an agreement to dismantle its weapons of mass destruction programs, and the requirements for suspending and removing US unilateral sanctions. The report was commissioned by the North Korea program at the United States Institute of Peace.

About the Author

Troy Stangarone is senior director and fellow at the Korea Economic Institute (KEI) in Washington, DC, where he oversees KEI’s trade- and economics-related initiatives. He is a regular columnist for the Korea Times and a contributing author to The Diplomat, and writes frequently on US-Korea relations, South Korean trade and foreign policy, and North Korea. Prior to his work at KEI, he worked for US Senator Robert Torricelli on foreign affairs and trade issues.

Related Publications

Will the ‘Washington Declaration’ Deter North Korea?

Will the ‘Washington Declaration’ Deter North Korea?

Thursday, April 27, 2023

By: Frank Aum;  Adam Gallagher

South Korean President Yoon Suk-yeol is in Washington this week as the United States and South Korea celebrate 70 years of bilateral ties. Yoon’s visit is only the second state visit hosted by the Biden administration and the first South Korean state visit in 12 years. While there have been some recent strains in the relationship over U.S. trade and semiconductor policy and Seoul’s support for Ukraine, the focus of the bilateral summit was on the threat posed by North Korea. Although the summit ostensibly achieved both sides’ desired security deliverables related to deterrence, reassurance and nonproliferation, these outcomes will likely not provide enduring solutions to the North Korea challenge.

Type: Analysis and Commentary

Conflict Analysis & PreventionGlobal Policy

North Korean Arms Control Doesn’t Have to Conflict with Disarmament

North Korean Arms Control Doesn’t Have to Conflict with Disarmament

Thursday, January 19, 2023

By: John Carl Baker

There is a tension between limiting North Korea’s nuclear weapons program and pursuing the goal of a denuclearized Korean peninsula. To emphasize the former — through arms control and risk-reduction measures — can seem at times like a repudiation of the latter. Conversely, a focus on disarmament — still the core of U.S. policy — can seem outright fanciful given North Korea’s stunning technological advances. In North Korea, the United States faces a nuclear-armed state whose capabilities continue to expand despite international opposition and extensive economic sanctions. Disarmament simply isn’t in the cards right now.

Type: Analysis and Commentary

Conflict Analysis & PreventionGlobal Policy

What You Need to Know About Japan’s New National Security Strategy

What You Need to Know About Japan’s New National Security Strategy

Monday, December 19, 2022

By: Mirna Galic

Japan released on Friday a new, robust national security strategy and complementary defense planning documents. The strategy is Japan’s first in nearly 10 years and only its second ever. The strategy navigates the country’s response to significant changes in the regional and global security environment, including Russia’s invasion of Ukraine, and reflect Japan’s growing sense of vulnerability vis-à-vis its immediate neighbors. USIP’s Mirna Galic looks at the new strategy and what it means for the region.

Type: Analysis and Commentary

Global Policy

Incremental Denuclearization on the Korean Peninsula

Incremental Denuclearization on the Korean Peninsula

Tuesday, December 6, 2022

By: Frank Aum;  Dr. Moon Chung-in

Tensions are rising on the Korean Peninsula as many believe North Korea is planning to conduct the seventh nuclear weapons test in the country’s history and the first since 2017. South Korean President Yoon Suk-yeol has warned of an “unprecedented joint response” and called on China — North Korea’s closest ally — to dissuade Pyongyang from going through with the test. Amid this troubling geopolitical environment, USIP’s Frank Aum discussed the prospects for peace on the Korean Peninsula with Yonsei University’s Dr. Moon Chung-in.

Type: Analysis and Commentary

Global PolicyConflict Analysis & Prevention

View All Publications