A state-run think tank says South and North Korea should use special economic zones to facilitate post-reunification economic integration.

The Institute for Monetary and Economic Research in Seoul released on Friday a report on combining the South and North Korean economies after reunification.

The institute, which is affiliated with the Bank of Korea, said that if the German model of rapid, radical economic integration is applied, it could lead to a mass exodus of North Koreans to the South, sparking inflation and decreased production in the North.

Based on this analysis, the institute suggested that the transfer of labor and products should be controlled for a certain period after reunification, which the think tank predicts will be safer and less expensive, leading to swift economic integration.