Pyongyang is cooperating with Korean Peninsula Energy Development Organization, whose leading members are South Korea, the United States and Japan. KEDO has reached an agreement on the provision of the light-water nuclear reactors by 2003, and, in return, North Korea has frozen its nuclear program. South Korea, which has promised to bear the lion's share of the reactor project cost estimated at US$4.5 billion, is asking the United States to put up at least a symbolic amount. The US administration, however, has said it can make no contribution to the construction cost as Congress has not appropriated the necessary budget. An official in Seoul, however, said that South Korea cannot drop its demand simply because of domestic problems in the United States. The US Congress has been delaying approval of the cost for the reactor project. South Korean officials said the U.S. refusal to share the reactor cost would make it difficult for them to obtain approval from the National Assembly for the South Korean share.
Since the conclusion of the Supply Agreement in December 1995, six related protocols have come into effect and three rounds of expert-level negotiations have produced solid results. The ROK power company, Korea Electric Power Corporation (KEPCO), is the prime contractor for this project and has as its responsibility the design, manufacture, procurement, construction and management of the reactors. On 19 August 1997 KEDO and North Korea held a groundbreaking ceremony to begin construction of two light-water reactors.
In October 2002, North Korean officials acknowledged the existence of a clandestine program to enrich uranium for nuclear weapons that is in violation of the Agreed Framework and other agreements.
On October 9, 2006, North Korea announced it had conducted a nuclear test.