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Reforming and Opening Up N.Korea Could Sharply Reduce Unification Costs

Written: 2011-07-26 18:42:21Updated: 2011-07-26 18:56:54

Reforming and Opening Up N.Korea Could Sharply Reduce Unification Costs

Research on the unification of South and North Korea shows that if North Korea adopts a reformed, open-door system, unification spending could go down to one-tenth of the currently estimated amount.

The study also notes that since unification costs include investments in infrastructure, the cost of unification should not be seen as spending on behalf of only the South Koreans.

The Korea Institute for National Unification announced in Seoul on Tuesday its report on the vision and value of unification on the Korean peninsula. The report is a compilation of expert opinions from numerous sectors on the estimated unification expenses.

The institute’s president Seo Jae-jin said that if South Korea provides support for just one or two years to enable North Korea to meet its own food needs, the North will create a self-sustaining capitalistic system. He said that this particular scenario will cost just one-tenth of the unification expenses that are based on the premise where South Korea supports North Korea for decades.

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