Foreign relations of South Korea
On January 18, 1952 The first president of South Korea Syngman Rhee declared that the vicinity of Dokdo was a territory of South Korea (Syngman Rhee line). Subsequently, some 3,000 Japanese fishermen who conducted fishery operations in this vicinity were captured. This incident, called the Dai Ichi Daihoumaru Ship case strained relations between South Korea and Japan.
North Korea–South Korea relations
In 1998, South Korean President Kim Dae-jung announced a Sunshine Policy towards North Korea. Despite a naval clash in 1999, this led in June, 2000, to the first Inter-Korean summit, between Kim Dae-jung and Kim Jong-il. As a result, Kim Dae-jung was awarded the Nobel Peace Prize. The summit was followed in August by a family reunion. In September, the North and South Korean teams marched together at the Sydney Olympics. Trade increased to the point where South Korea became North Korea's largest trading partner. Starting in 1998, the Mount Kumgang Tourist Region was developed as a joint venture between the North Korean government and Hyundai. In 2003, the Kaesong Industrial Region was established to allow South Korean businesses to invest in the North. In the early 2000s South Korea ceased infiltrating its agents into the North.