A socialist state Statement was established Creating in the north under the communist leadership of Kim Il-sung and a capitalist state Statement in the south under the anti-communist leadership of Syngman Rhee .

These Soviet actions , while strengthening Cause_change_of_strength control over the Eastern Bloc , alienated Influence many Western Marxists , leading to Causation splits and/or considerable losses Earnings_and_losses of membership for communist parties in capitalist states .