A nuclear crisis on the Korean peninsula was primarily caused by security reasons. However, from the very beginning an economic component has been inextricable part of any settlement plan. Since the 1990s the DPRK has been offered economic benefits in return for an agreement to abandon its nuclear program. After the first nuclear test in 2006 the international community led by the USA has emphasized imposing economic restrictions on North Korea. Engagement and sanctions have become two key approaches to dealing with the DPRK. They have been applied simultaneously and separately, unilaterally and multilaterally.