North Korea continues to prioritize military modernization and missile development, including recent inspections of new artillery systems and tests of short-range ballistic missiles, while fortifying positions along the DMZ and designating South Korea a hostile state. These steps reflect a strategy of deterrence and capability-building rather than preparations for a full-scale invasion, amid Kim Jong Un's focus on irreversible nuclear status and selective diplomacy with the United States. South Korean officials under President Lee Jae Myung have pursued de-escalation through expressions of regret over cross-border incidents, supported by ongoing U.S. alliance commitments. Traders interpret the absence of mobilization signals or imminent threats as evidence that conventional conflict remains unlikely before 2027, sustaining the high implied probability against such an outcome.