Unification Costs

A ROK National Assembly Special Committee on Budget and Accounts has estimated that unification could cost around 1 trillion dollars – yes, 1 trillion – with the cost increasing further over time.

The report notes the difference in timing. If unification occurs in 2015, it could cost around $858 billion over 10 years to absorb the North. If unification occurs in 2030, it could cost $1.32 trillion.

On the positive side, there could be benefits through decreased military spending, new markets in North Korea as well as cheaper land and labor.

More on the report at the Korea Times. I guess that’s why economic cooperation projects are a priority…

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