It is no secret that Korea and Japan (or rather both Koreas and Japan) have a lot of beef with each other since the Imjin War in the late 16th century and it seems like they'll remain rivals for years, even decades, but what if they became rivals on par with Saudi Arabia vs. Iran in that they back their respective proxies against each other and even come close to war with each other directly (note that comparison, as in at least a regional rivalry, not necessarily on par with the US vs. USSR rivalry for obvious reasons)? How plausible can that work given the Cold War circumstances?
One POD I can come up is North Korea getting lucky in defeating the South and the UN forces early on in 1950 (on account of a certain US fighter plane not bombing a secret HQ of the KPA near Pusan in early August) and being able to reunite the Korean peninsula by the end of the year, with the South being confined to Jeju. This results in Japan rearming to bolster the US line of defense against communism and in response, China and the USSR ally further with Korea to fund communist and independent forces around the world and Japan works with the US and its allies in confronting them, rebuilding and expanding an empire of sorts around the world in the process (but not necessarily being un-democratic nor hostile to the US again).
One POD I can come up is North Korea getting lucky in defeating the South and the UN forces early on in 1950 (on account of a certain US fighter plane not bombing a secret HQ of the KPA near Pusan in early August) and being able to reunite the Korean peninsula by the end of the year, with the South being confined to Jeju. This results in Japan rearming to bolster the US line of defense against communism and in response, China and the USSR ally further with Korea to fund communist and independent forces around the world and Japan works with the US and its allies in confronting them, rebuilding and expanding an empire of sorts around the world in the process (but not necessarily being un-democratic nor hostile to the US again).