(Bloomberg) -- A landmark summit between South Korean President Moon Jae-in and North Korea’s Kim Jong Un is underway in Pyongyang, with Moon attempting to use his three-day visit to the North Korean capital to salvage nuclear talks between Kim and U.S. President Donald Trump.
Kim and Moon, who paraded through the streets of the city in a shared limo shortly after Moon touched down, spoke for two hours on Tuesday at the headquarters of the Workers’ Party of Korea. They are expected to hold a second closed-door meeting on Wednesday morning, followed by a joint press conference.
Here’s what to watch on Wednesday:
Kim’s Comments on Nuclear Program
A key element to determining the success of the summit is whether Kim gives any clarity about the future of the program. In order to make headway on inter-Korean relations, Moon needs to persuade Kim to commit to something that goes beyond his vague April promise to denuclearize the Korean peninsula.
That includes Kim agreeing on specifics to end his regime’s nuclear program, including welcoming international inspectors and giving a list of its nuclear facilities to the U.S. If he succeeds, Moon will solidify his reputation as chief negotiator between the U.S. and Pyongyang.
The Contents of Any Joint Agreement
Moon’s spokesperson Yoon Young-chan on Tuesday told reporters to “wait and see” if the two leaders will issue a joint declaration statement. The presidential office hinted before his visit that if a joint agreement was produced between the two leaders, it could include language on measures to reduce military tension on the heavily guarded inter-Korean border.
It is also likely that an accord would have new details on implementing proposals laid out in the so-called Panmunjom declaration, which the two men signed at their first landmark meeting at the border in April.
The pact includes a commitment to connect the two countries’ road and rail networks as a “first step” towards restarting economic cooperation. It also includes pledges to work toward “complete denuclearization” and establish a “permanent and solid peace regime on the Korean Peninsula.”
Any Business Deals, Particularly With Samsung
This week also marks the first visit to Pyongyang of Samsung Electronics (KS:005930) Co.’s Vice Chairman, Jay Y. Lee, who is accompanying Moon’s contingent along with other heads of large South Korean conglomerates.
The executives’ attendance in Pyongyang was proposed by Seoul, Moon’s office said, as the two Koreas look ahead towards potential business collaborations in the “long-term” future should sanctions on North Korea be lifted.
The unprecedented visit by some of South Korea’s wealthiest and most powerful individuals may provide North Korea further incentive to open its economy. And it’s one of Lee’s most prominent outings since his release from prison in February after serving time for bribery, part of the corruption scandal that brought down Moon’s predecessor Park Geun-hye.
Executives from Samsung, Hyundai Motor Co., LG Electronics Inc., and SK Holdings Co. -- along with the heads of South Korean state power and railroad companies -- met Tuesday with the North Korean vice premier in charge of the country’s economy.