North Korea Could Be a Major Political Risk
Concerns over North Korea
While North Korea and South Korea (EWY) have initiated talks recently, North Korea’s nuclear ambitions mean that tensions will always remain in the region despite temporary overtures of peace from both sides. In the last few years, North Korea has made rapid strides in developing nuclear-borne missiles capable of reaching the United States (IVV).
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North Korea’s fear of a possible US strike
CIA director Mike Pompeo recently said that North Korea is moving very close to putting Americans at risk. The same concerns have been reiterated by US Ambassador Robert Wood while addressing the UN-sponsored Conference on Disarmament in Geneva. He said that North Korea may be a few months away from being able to hit the US with a nuclear missile. He further added that Russia (RSX), China (MCHI) (FXI), and North Korea are increasing their nuclear stockpiles, thus increasing the risk to global peace.
On the other hand, North Korea fears that the US may launch a preemptive strike against it. The distrust between the US and North Korea is so high that both the sides fear a possible strike from the other, which could escalate into a broader conflict.