50 billion plan to unify both Korea's
The South Korean government established a plan to raise 50 trillion Won (45 Billion Dollars) as payment to reunify with North Korea. According to Ministers Yu Woo Ik, citizens at home and abroad can donate to the government to fund this unification. Other foreign governments have the opportunity to contribute, but the South Korean government will not ask.
Another method used by the government is to incorporate a unification tax to its citizens in case the contributions prove to run slowly. Lawmakers are close to passing this legislation to establish the unification account that according to Minister Yu will unite people to the desire of unification.
Estimations of unification are to take place in the next 20 years as a peaceful transition. Estimation is that cost may reach as high as 269 trillion Won which in comparison a quarter of South Korea’s 2010 GDP. Also in the next few years, South Korea will depend on its bilateral trade with China, which accounts for 83 percent of the South Korea’s 4.2 billion international commerce from last year.
Comment:
The unification model of West and East Germany in 1989 cannot apply to Korea’s, since North Korea’s economy is much poorer. According to the South Korean central bank, the economy of South Korea is 40 times bigger than North Korea’s by estimated 2 million people dying from famine. Another factor is that the population of Kim Jong il state is at least half that of South Korea’s 49 million citizens. One important factor the government needs to take into consideration is to reduce the emotional gap of its citizens or antipathy between the Koreas in able to unify.
Another method used by the government is to incorporate a unification tax to its citizens in case the contributions prove to run slowly. Lawmakers are close to passing this legislation to establish the unification account that according to Minister Yu will unite people to the desire of unification.
Estimations of unification are to take place in the next 20 years as a peaceful transition. Estimation is that cost may reach as high as 269 trillion Won which in comparison a quarter of South Korea’s 2010 GDP. Also in the next few years, South Korea will depend on its bilateral trade with China, which accounts for 83 percent of the South Korea’s 4.2 billion international commerce from last year.
Comment:
The unification model of West and East Germany in 1989 cannot apply to Korea’s, since North Korea’s economy is much poorer. According to the South Korean central bank, the economy of South Korea is 40 times bigger than North Korea’s by estimated 2 million people dying from famine. Another factor is that the population of Kim Jong il state is at least half that of South Korea’s 49 million citizens. One important factor the government needs to take into consideration is to reduce the emotional gap of its citizens or antipathy between the Koreas in able to unify.
Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/01/bloomberg_articlesLTYZP16S9728.DTL
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