This report summarizes the proceedings of a simulated role playing peace game conducted in October 2021 to generate tangible progress in diplomatic negotiations aimed at improving inter Korean relations, strengthening security, and building trust on the Korean Peninsula. The exercise was jointly organized by the United States Institute of Peace, the Quincy Institute, and the Sejong Institute of the Republic of Korea. Teams representing the United States, the Republic of Korea, the Democratic People’s Republic of Korea, and China participated in the peace game.

As the core actors in the exercise, the United States and North Korea teams ultimately determined whether negotiations would stall or advance. In the course of the discussions, however, both sides assessed potential losses as outweighing potential gains, resulting in diplomatic deadlock. Each side expected the other to take the first conciliatory step. Breaking the impasse required presidential leadership and political will.

During the negotiations, the United States team placed greater emphasis than the South Korean team on the risks arising from North Korean provocations and ambiguous intentions, which led to policy differences within the alliance. In addition, strategic competition between the United States and China constrained opportunities for progress and amplified misunderstandings between the United States and South Korean teams, reinforcing a zero sum perspective.

Based on the findings of the exercise, the report offers the following policy recommendations:

• Progress toward peace and denuclearization on the Korean Peninsula requires leadership at the highest level of decision making, along with the support of all parties for any final agreement. In the United States, presidential leadership is essential, and coordination with Congress should be strengthened.
• All parties should begin with small and reversible measures. This approach can reduce the risks of failure while increasing potential gains. The United States should consider confidence building measures that facilitate negotiations without undermining security.
• The United States should enhance strategic consultations with South Korea on key alliance related issues, including North Korea policy.
• To advance negotiations, all parties should approach the Korean Peninsula issue separately from the framework of United States–China strategic rivalry.