Experts Discuss Strategies for Preparing for Unified Korea Financially

News Summary

During a seminar at the National Assembly last Friday, scholars and experts specializing in inter-Korea relations and finance evaluated the economic conditions of two Koreas and discussed strategies for preparing for a unified Korea in the midst of the rapidly changing geopolitical environment.

Addressing the cost of potential unification between the two Koreas, Professor Nam Kwang Kyu from the Asiatic Research Center at Korea University highlighted the increasing economic disparity between the two nations. According to various international think tanks, the estimated cost for establishing a unified Korea over 10 years ranges from $250 billion to $2 trillion. Nam emphasized the pressing need for action to tackle this issue.

Nam added, “It requires not only government funding but also funding from private sector. I suggest fostering a massive financial hub here to attract financial companies in Japan and Singapore who are interested in (rebuilding North Korea). At the same time, we also need to open their door for capital injection for it.”

Commentary

With the Kim regime's collapse drawing near, it is crucial for South Korea to have this kind of discussion on how to prepare for a unified Korea, particularly in the area of finance.

As Professor Nam presented, the cost of rebuilding North Korea and establishing a unified Korea is enormous, exceeding the financial capacity of South Korea alone. Therefore, it is imperative to secure international assistance for this endeavor. South Korea should begin to collaborate closely with its allies and the international community to secure the required government and private funding from overseas.

However, given the current political unrest and division in South Korean society, it appears difficult for the country to assume the crucial task of rebuilding North Korea. Should the Kim regime suddenly collapse, South Korea might not be adequately prepared for such a responsibility. In this case, the international community, possibly under the supervision of the United Nations (UN), could potentially oversee the reconstruction of North Korea in collaboration with a new North Korean government and its citizens. South Korea itself was also reconstructed after the Korean War with assistance from the United Nations Korean Reconstruction Agency (UNKRA). This would create numerous opportunities for other countries, both in the public and private sectors, to contribute to the rebuilding of North Korea.