The new Philadelphia is a heavily policed and oppressed environment, with civilians living in fear as the Korean People's Army patrol multiple districts in the city, aided by American collaborators led by Mayor Simpson. The game takes place in Philadelphia in 2029, four years into the occupation. Although initially presented as an international humanitarian effort to restore stability to the United States after the economic collapse, the Koreans proceed to strip mine the country for its natural resources to repay the debt and proceed to brutalize the populace in response to a national resistance movement against the occupation. Joe Tae-Se's son, APEX CEO and North Korean Premier John Tae-se, (with the approval of the international community) use this as a pretext to invade and occupy the country, using a backdoor installed in all APEX technology to shut down the United States military. In 2025, the United States' economy collapses, forcing the USA to default on their debt to North Korea.

Bush and John McCain, is a pariah state amongst the international community as well as suffering from massive war debt from purchasing weapons technology from APEX and is in severe economic conditions. The United States, meanwhile, after years of multiple conflicts in the Middle East under Presidents George W. Combining business acumen, a technological edge, and the strict order imposed by the Kim dynasty, North Korea has become the most powerful and influential nation on Earth, controlled by the APEX Corporation and led by a Steve Jobs-like figure named Joe Tae-se. In 1977, North Korea's original government falls out of favor after a series of devastating floods and Kim Il-sung resigns from office and replaced with a more moderate Premier, Lee Dong-won. The story takes place in an alternate history setting in which the digital revolution of the 1970s took place at North Korea's Silicon River, a region along the Ryesong River, instead of the 'Silicon Valley' of Northern California. Homefront: The Revolution is not a continuation of the original Homefront, but rather a re-imagining of the premise.

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