Identity, difference, and the dilemmas of inter-Korean relations: Insights from northern defectors and the German precedent

Questions of identity have become increasingly central to the study of foreign policy and security, particularly in constructivist debates. But very few of the resulting insights have been applied to the Korean situation, where discussions about security and inter-Korean relations remain dominated by strategic and geopolitical issues. The main task of this article is to address this shortcoming by examining the experience of North Korean defectors in South Korea and the precedent of German unification. Both of these domains of inquiry reveal that identity differences between North and South persist far beyond the ideological and political structures that created them in the first place. Born out of death, fear, and longing for revenge, these identity patterns lie at the heart of Korea's security dilemmas. Unless taken seriously by scholars and decision makers, the respective tensions between identity and difference will continue to cause major political problems. (Key words: Inter-Korean relations, North Korean defectors, German unification)

Conditional risk, return and contagion in the banking sector in Asia

This paper investigates risk and return in the banking sector in three Asian markets of Taiwan, China and Hong Kong. The study focuses on the risk-return relation in a conditional factor GARCH-M framework that controls for time-series effects. The factor approach is adopted to incorporate intra-industry contagion and an analysis of spillovers between large banks and small banks. Finally, the study provides evidence on these relations before and after the Asian financial crisis of 1997. The results are generally consistent across the markets and with expectations.