SEOUL: A US crackdown on North Korean finances has not only hit Pyongyang hard but also exposed a divide between Washington and Seoul that the two governments may have trouble bridging, analysts said.

Washington and Pyongyang are digging in their heels over the financial crackdown, and Seoul is looking for compromise.

But unless a solution is found soon, talks on ending North Korea’s nuclear weapons programmes — one of the greatest threats to regional stability — could stumble.

Analysts said the financial crackdown problem is difficult to resolve because it strikes at the heart of fundamental differences between Seoul and Washington.

“Much of the problem comes from the fact there is a clear mismatch of the top priorities of South Korea and the United States,” said Paik Hak-soon, head of North Korea studies at Sejong Institute south of Seoul.

South Korea’s priorities under President Roh Moo-hyun have been regional peace, regional prosperity, engagement and eventual long-term unification with the North, Paik said.

The Bush administration has been interested in fighting both terrorism and military proliferation, he said, and it suspects that North Korea’s illicit activities have helped fund Pyongyang’s nuclear weapons programmes.

Analysts also note the Bush administration is now trying to manage a showdown with Iran over its own nuclear programmes and may be unable to focus fully on North Korea at the moment.

South Korea’s president took a swing at those in Washington who seek a hard line against North Korea and said they sometimes seem to be seeking a collapse of the regime.

“If the US government tries to resolve the problem this way, there will be friction and disagreement,” Roh Moo-hyun told a news conference, referring to US-South Korea ties.

Pyongyang’s reaction to the crackdown has been to say it would be unthinkable to reconvene six-party talks on its nuclear arms programmes until Washington lifts the financial limits.

Washington says it wants to separate the crackdown from the nuclear talks — which include the Koreas, China, Japan, Russia and the United States — and is ready to return to the table.—Reuters