It has been 62 years since the Korean Peninsula was divided. Last year, the Ministry of Unification invested 51 billion won and offered a great deal of rice and fertilizer to North Korea. Many years have passed, however, and the running situation remains unchanged. It isn't easy to overcome the differences because South and North Korea have many differences such as their ideals, cultures, languages, and economies.
Many scholars show different viewpoints about the cost of reunification to overcome the differences between South and North Korea. Recently, Peter M. Beck, who is the Pantech Research Fellow at Stanford, has estimated that reunification would cost 5 trillion dollars for 30 years in order to raise the economy of North Korea to 80 percent of the South Korean economy. Charles Wolf, Jr, who was named director of RAND research, said that the cost of reunification needed a maximum of 1.7 trillion dollars. On the other hand, Chun Yung-woo, who is the 2nd Vice Minister of Foreign Affairs and Trade, said that if South Korea invested about three billion dollars -1% percent of the Korean budget- to North Korea, North Korea could solve starvation, and that if South Korea invested about 13.5 billion dollars -2~3 percent of Korean GDP- for 20 years, North Korea could reconstruct base industries.
It is certain that astronomical figures are needed to reunify with North Korea. What are the reasons for such a high cost? First, North Korean based industries require much money for construction. Also, it is an expensive feat to withdraw the US Army and to integrate the value of currency between both countries. In addition, government subsidies are needed to prevent the Northern population from moving to the South.
In spite of these economic burdens, reunification must be achieved. It is true that the cost for reunification is massive, but people need to know that they can benefit from reunification.
Reunification will be helpful to increase the incomes of North Koreans and to develop their industries. As a result, the purchasing power of South Korean products will increase. Also, a lot of jobs will be created in the process of raising the North Korean economy to 80 percent of the South Korean economy. The interests in reunification are not only economic ones. The security dilemma which was caused by an arms race can be solved if reunification occurs, which will raise the status of the Korean Peninsula in the international society.
The reunification might not be achieved easily because the two countries have lived as different nations for years. Interaction between both countries is important. South Korea and North Korea need to consider each other as a great investment.