One way to deal with North Korea, called the "Six-party talks", was already proposed and agreed on by North Korea, China, Russia, and even South Korea, but not agreed on by the U.S.A. and Japan.
In this plan, North Korea would be rewarded in steps, as it dismantles its nuclear program, cooling down its relationship with the outside world.
Once trade starts to happen and people find out about how great capitalism, they might want more of it, and in less than a decade, tear down their government.
(For the video below, skip to 1:14:56.)
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