The most dramatic events affecting relations in early 2012 concerned North Korea. The power transition appears to be proceeding smoothly, although mixed signals indicate that a clear foreign policy has not yet been worked out in Pyongyang. Meanwhile, South Korea and Japan continue on their seemingly disconnected tracks. In economic relations and day-to-day issues, they continue to move closer together on issues from dealing with tax evasion to joint disaster relief planning. Yet, territorial claims or claims about history are a constant irritant that threaten to derail relations. Both sides seemingly wanted relations to worsen by picking fights over Dokdo/Takeshima and making claims about history. One could dismiss the squabbling as peripheral to the main relationship, but it hinders coordination and planning over important issues, diverts diplomatic attention, and remains salient for domestic politics of both sides.
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