The global and East Asian orders of power are now represented by China's economic, military, and diplomatic rise and America's decline. While U.S.-China relations represent a set of the most important variables in world politics, the meaning of China’s rise is much greater on the Korean Peninsula. Given the recurring balance of power shift from the U.S. preponderance of power for the last two decades, it is necessary to rethink the security environment in the region. In this vein, South Korea may need to examine the meaning of the rise of China for the Korean Peninsula, especially with regard to the North Korean issue. In reality, China's rise has presented South Korea with a complex and difficult challenge in dealing with North Korea. As a result of the rise of China and changes in Chinese-North Korean relations, the North Korean problem can no longer be seen from the post-Cold War framework of the 1990s. North Korea is now a nation strongly dependent on and supported by a rising China. Thus, it is high time for South Korea to think again about its North Korea policy. The South Korean government needs to reassess the changing balance of power on the Korean Peninsula and seek a new North Korea policy that can increase its influence on North Korea.