This study seeks to identify the goal of developing economic relations between South Korea and North Korea and the appropriate policies to achieving this goal, thereby contributing to resolving the conflicts of separation and start a new era of history. The study seeks to fulfill the goal by examining the ‘7.7 Declaration’ and the speeches addressing the declaration in the 43rd and 46th Session of the UN General Assembly.
In the face of a new millennium, achieving social and economic integration between South Korea and North Korea is expected to gain more recognition. Active and aggressive efforts to improving South-North relations during the late 80s, the 1988 Seoul Olympics, and the diplomacy towards North Korea during the Roh Tae-woo administration all contributed in society’s recognizing of this reality. In addition, with the changes taking place both inside and outside of the countries, more attention is being given to the reunification of South Korea and North Korea. In this situation, there is a need to seek plans to develop South-North Korean relations for the creation of a shared community and to seek a plan for reunification of the two Koreas that advocates today’s democracy and freedom.
For the South and North to be able to develop a single national community, South Korea must retain its market economy while reinforcing its recognition of social affairs and guaranteeing the minimum standard of living for low-income classes. For this, social policies must be modified in an economical way.
Meanwhile, support is needed to accelerate the North’s opening and induce reform. In addition, stability must be achieved in the North on both social and economic fronts in order to be able to develop a single national community. For this, research will have to be conducted beforehand to examine social problems and identify counterplans. Potential social problems include: large-scale company bankruptcy due to an inefficient state monopoly and low levels of technology and production facilities, large-scale unemployment from the companies’ bankruptcy, a sudden rise in North Korea’s expectation on living standards, and investment plans on bringing up the low level of social overhead capital.
In reality, South Korea is expected to take the leading role in forming the single national community. For this, the country will have to reinforce its economic capability and carry out reform across its society in general. And in order for the South to cope with the economic burden rising from reunification, national savings for sustainable economic growth and reunification needs to be increased, while social harmony needs to be attained through reform of the distribution structure and social welfare and security programs. In addition, labor motivation needs to be boosted by developing a sense of identity within the community.
Finally, in order for North Korea to accept and not reject the concept of a market-economy based economic bloc, a new corporate culture must be cultivated through developing healthy corporate ethics and inducing technological innovations.
남북한 경제관계발전의 목표와 정책과제(Study on the goals and policy tasks for the development of South-North Korea’s economic relations)
[서울] : 한국개발연구원
|Series Title; No||정책연구시리즈 / 91-38|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|
|Holding||KDI; KDI School|