South Korea does not have enough financial resources to support the rehabilitation of the North Korean economy. On the other hand, the international community will recognize the economic benefits of an increasingly stable and secure Korean peninsula as the North-South dialogue progresses, and be ready to make due contributions. This paper puts forward two conceivable proposals. One is the establishment of a multilateral assistance mechanism (MAM) through which financial, as well as technical, assistance to North Korea will be channeled and a multilateral policy dialogue with North Korea will be maintained. The participants could include major donor governments, major IFIs, the UNDP, NGOs, and international aid agencies. A multilateral coordination mechanism is better suited to preventing aid duplication and for assuring the transparency of the economic assistance provided. Such a mechanism is also needed for the swift provision of much needed economic assistance to North Korea. The second proposal concerns North Korea’s external debt problem. Without the initiation of debt relief talks on rescheduling or reductions, North Korea is, for all intents and purposes, out of the international financial market. It is time to think about the participation of the Paris Club official creditors in the debt relief negotiation process. Furthermore, the utilization of NGOs in the course of clearing the insolvent debts through debt-for-equity swaps could be considered as a complement to straightforward debt relief.