by Daniel Ortwerth, CFA  | PDF

In late October, the world learned that North Korean soldiers had deployed to Russia to assist their allies in the Ukraine war. This dramatically changed the geopolitical profile of the conflict. Allies and partners of both Ukraine and Russia have been providing material and financial support to both countries since virtually the beginning of the war. North Korea itself (formal name Democratic People’s Republic of Korea, or DPRK) has been contributing large quantities of arms and ammunition to Russia; however, this is the first known instance of another country sending combat troops to join the fight on either side. This precedent-setting action marks a clear escalation and raises the question of how this development might further accelerate the conflict.

This report addresses that question. We begin with a review of the known facts concerning troop numbers, types, locations, etc. We continue with an assessment of the likely impact of DPRK forces on the course and outcome of the Ukraine war and culminate with considerations of how this development might affect the broader geopolitical landscape beyond the conflict. As always, we conclude with investment implications. Since this report addresses a newly emerging and rapidly evolving development, its status may materially change post-publication. We encourage readers to monitor our Daily Comment for emerging updates.

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