Recently, North Korea is developing ‘a sweeping campaign’ to celebrate the first year, 2012, when it will emerge as ‘a powerful state’ after solidifying Kim Jong-Eun’s heirship and escaping from economic distress. Internally, N. Korea reshaped the structure of hereditary political power through the Party, focusing on economic growth through efforts to rehabilitate its economy independently. Externally, the country seeks measures through stepping up its solidarity with China, politically or militarily, at the deadlock of negotiations with U.S.A and in discontinued South-North relations. It is highly likely that the policy chosen by the northern party in the course of sovereign heredity would extensively affect the northern territory,Korean peninsula and even Northeastern areas. Based on the assumption, this study is intended to examine N. Korea’s changing conditions in terms of economy and hereditary power, and further prospect shifts in situations on Korean peninsula through analysis of the North’s nuclear issue and South-North relations. The North’s intention to stabilize the heredity of power and achieve a powerful state finally relates to the solution of economic problems. The improvement of people’s life is likely just a slogan as long as the northern leader puts the priority of policy on systemic stability rather than economic recovery. South Korea would have to draw up elaborate strategies, along with in-depth analyses of internal changes within North Korea, in order to cope with unpredictable conditions in the North’s sovereign heredity. S. Korea’s policy toward N. Korea would have to be employed to engage the country into international society, diverting its eyes toward Changes in North Korea and Situations on Korean Peninsula:Focusing on N. Korea’s sovereign hereditary, economy, nuclear issues and relations with S. Korea denuclearization and reforms.