The United Republic of Korea

Capital: Nodong Johab, a new city established around the Joint Security Area and the former town of Panmunjom.
Government: Joint military dictatorship
Leaders: General Kyung Sung Yu and General Haneul Seok Rhee
Economic model: Command economy/autarky; most industry goes to making sure the military and the state continues to run self sufficiently.
Policies: Nationalist, unification of the Korean peoples, self sufficiency, militarism
History: 1991. The year that the world collapsed. With no foreign backers, the two Koreas suffered greatly. South Korea's industry had been based strongly on exports and imports. When the ships stopped coming into port, the way of life the people had grown accustomed to collapsed. Riots and protests erupted everywhere, and communist insurgents used the chaos to subvert the democratic government in Seoul. The North fared just as badly. With their communist allies gone, the Hermit Kingdom withdrew further into its shell, maniacally preparing for the perceived invasion from the south. The result was the North Korean Famine of 1992-'94, in which an estimated 4.3 million citizens perished. Fed up with the mismanagement that plagued the government, several officers launched a coup to remove Kim Il-Sing from power. However, in a repetition of a deadly July morning in the early 20th century, the entire family of Kim Il-Sung was slaughtered alongside him, leaving a power vacuum which soon dissolved into all out war.
In the year 1996, an historic event occurred that would change the fate of the Korean people forever. General Kyung Sung Yu of the People's Republic of Korea and General Haneul Seok Rhee of the Republic of Korea met together in the Joint Security Area to with a simple goal in mind; to reunite the two halves of Korea. Many officers on both sides of the DMZ had long grown disillusioned with their prospective governments. It now seemed that the only way to save Korea was to unite together under one banner. With a few signatures, they broke free from their previous loyalties and joined together with renewed purposed. Once those who still clung foolishly to the old powers were purged, the armies of the North and South turned and marched outwards from the heart of Korea.
The year is now 1998. two years after that historic arrangement. The General Secretary, Central Committee, and the Supreme People's Assembly of the PRK have fled north of Yula River, while the President, Joint Chiefs of Staff, and National Assembly of the RoK cluster around Pusan, trying desperately to flee to anywhere of the peninsula. The URK continues to march forwards, with the sight of unificationb within their grasp.