North Korea’s recent constitutional amendments, publicly detailed in early May 2026, removed reunification mandates and explicitly defined its territory as bordering South Korea to the south, formalizing a “hostile two-state” framework that treats the Republic of Korea as a separate entity rather than a reunification target. South Korea’s National Intelligence Service assessed these changes as signaling Pyongyang’s intent to preserve the status quo, consistent with the Lee Jae-myung administration’s ongoing “peaceful coexistence” policy and diplomatic outreach. Routine ballistic missile tests in April 2026 and North Korea’s nuclear capacity expansion remain focused on deterrence and leverage ahead of potential U.S. engagement, without evidence of invasion preparations or cross-border escalation. Traders view these developments as reinforcing the low likelihood of military action before 2027, aligning with historical patterns where Pyongyang prioritizes regime security over direct confrontation.