One in a series of booklets whose purpose is to stimulate greater and more effective understanding of world affairs among Americans, this seven-chapter report examines the political, economic, and anomalous positions of North and South Korea in the international system. "Traditional Legacies" traces the historical development of the two Koreas. "The Colonial Pressure Cooker" looks at the colonial system's impact on Korea. "Liberation, Separate Regimes, War" explores national division, rivalry, and the Korean War. "The South Korean Political System" examines South Korean political crises and growth. "The North Korean Political System" examines North Korea's socialist corporatism system. "The Two Economies" compares the two Koreas' different economies. "Foreign Relations" discusses the diplomacy of North and South Korea. The "Talking It Over" section offers questions for students and discussion groups. The report includes maps, pictures, and an annotated reading list. (TRS)