Play 4 Asian Funds On North Korea’s Denuclearization

The resolve to improve mutual relationship between North Korea and its southern counterpart took a step further on Sep 19. Leaders from North and South Korea finally agreed on denuclearizing North Korea in an accord.

Further, the Asia Development Bank remains upbeat about the outlook for Asia’s economy through 2019. Additionally, the Bank of Japan (BoJ) decided to keep interest rates unchanged and offered a rosy view of its economy. Such encouraging conditions call for investing in mutual funds having significant exposure to Asia.

North Korea to Permanently Denuclearize

South Korea’s president Moon Jae-in and North Korea’s Kim Jong-un had created history at the third inter-Korean summit. This marks the first time since the armistice of 1953 that a North Korean leader has stepped on South Korea’s soil. The summit concluded with each leader promising to denuclearize the Korean peninsula and ending the Korean war.

On Sep 19, after a meeting in Pyongyang, leaders from the respective countries “agreed on a way to achieve denuclearization.” North Korea’s Kim Jong-un agreed to shut down one of the country’s important missile testing and launch sites. Kim also stated that this agreement was a “leap forward” toward achieving geopolitical stability in the Korean peninsula and the surrounding areas.

What Does the Deal Look Like?

South Korea’s Moon Jae-in stated that his counterpart from the North had “agreed to permanently close the Tongchang-ri missile engine test site and missile launch facility.” He also stated that, to keep the procedure transparent, North Korea would move ahead with the plan in presence of experts from “relevant nations.”

The leader also stated that Kim Jong-un had agreed to close its Yongbyon nuclear facility. The facility is touted to have been used by North Korea to produce materials used in the nuclear tests. Further, defense chiefs from both countries signed a 17-page agreement, pledging to “cease all hostile acts against each other.”