How to Calculate Costs
It's presented in this study considers the first phase after successfully reunification and cutters for the medical supply funds and emergency food for North Korea (Gnazzo 9). The amount of food required per day is calculated by considering the amount of calories each citizen of North Korea would need for a given period. Other costs such as transportation and incidental expenses are included.
For the integration of the economic, military, political and social systems two Koreas and also approximated in the presentation. For the military integration of both the South and the North Korea, uniforms would be needed for the soldiers (Kim 360). Another factor put into consideration is the existing mass revenue gap that exists between the South and the North.
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Assessment of Approximated Unification Cost
| Researcher | Year | Technique of Calculation | Approximations | Comments |
| Korea Development Institute | 2010 | Denuclear-Open-Door proposal made by the South Korean president M.B. Lee subject to North Koreas Approval. | $10 Billion in gradual approach or $72 Billion | For the Year 2010 |
| Samsung Economic Research Institute | 2005 | Increment of the minimum living costs based on both South and North Korea’s GDP. | 54.6 Billion | For The Year 2005 |
| Korea Development Institute | 1991 | To grow North Korea’s per capita income to at least 60% that of the South Korea. | $160.1-171.3 Billion in gradual approach or $263.2 Billion | Confederacy expected in 2001 |
| International Monetary Fund | 2003 | To grow North Korea’s per capita income to at least 75% that of the South Korea. | $421 Trillion Won | Unification expected after 20 years |
| The Bank Of Korea | 2008 | To grow the revenue level of North Korea. | $500-900 Billion (Gnazzo 9) | - |
| The Korea Institute of Public Finance | 2008 | Ten Year expenditure after a successful unification. | 7-12% of South Koreas Gross Domestic Production | Assuming unification to happen in 2011 |
| The Credit Suisse | 2009 | To grow North Korea’s per capita revenue to at least 60% that of the South Korea. | $1.5 Trillion | - |
| Rand Corporation | 2010 | To doubt the Gross Domestic Production of North Korea in 5-6 years. | $62 Billion | - |
| The Federation of Korean Industries | 2010 | A study was done, top North Korean experts were the respondents. | $3 Trillion | - |
| Goldman Sachs | 2011 | To increase the labor efficiency of South Korea to 50-100%. | $1.07 Trillion | For a decade after successful unification. |
The True Cost of the Korean Unification
The realization by stakeholders of the enormous reunification costs lead to the dampening of the enthusiasm for its campaign. Researchers have published firing costs for the Korean reunification. Factors have also been considered as from the German experience (Hong 23). Latest image cost of Korean reunification analyzing the approximation of $25 Billion to $3.5 Trillion.
Benefit of the Unification
Some of the benefits for unification of Korea presented by researchers include reduction in the military budget for both sides (Kim 360). The measurable amount of natural resources that exist in North Korea would also be shared between the two sides. The economic organization policy introduced by the European Union would swollen business chances for both sides.
References
Gnazzo, Andrew. "A Unified Peninsula: Consensus as the Optimal Path to Korean Reunification." (2020).
Hong, Tae-Hwan Kwak Chonghan Kim, and Nack Kim. "Korean Reunification: New Perspectives And Approaches."
Kim, Jinhyun, et al. "An Estimation of Supply and Demand for Primary Healthcare Nursing Workforce in the North Korean Region after Korean Reunification." Journal of Korean Academy of Nursing Administration 25.4 (2019): 353-361.
