The Sunshine Policy was the theoretical basis for South Korea's foreign policy towards North Korea from 1998 to 2008. Its official title is 'Taebuk hwahae hyo˘mnyo˘k cho˘ngch’aek (The Reconciliation and Cooperation Policy vis-à-vis the North),’ and is also known as‘Taebuk unyo˘ng cho˘ngch’aek (The Operational Policy vis-à-vis the North)’ and ‘P’o-ong cho˘ngch’aek (The Embracing Policy).'

In 1998 the South Korean President, Kim Dae-jung, described a policy that was meant to soften North Korea’s attitude towards South Korea, naming it after one of Aesop's fables, 'The North Wind and the Sun'. Though the name came from Aesop’s Fable, the idea was based on the traditional Korean ways of dealing with enemies by giving them gifts to prevent them from causing harm.

The policy emerged largely in the context of growing economic gap between the two Koreas, where the South was moving in the path of strengthening its nation powered by the economic prosperity achieved from president Park Jung Hee's administration in the 1970s throughout the 1990s while the North was falling into severe economic decline. Facing bankruptcy and spending excessive portion of its funds on warfare along with the nuclear program, North Korea faced widespread starvation among its people during the time. Sunshine Policy was aimed at mitigating this gap in economic power and restoring lost communication between two nations.

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