During Japanese colonial era, Korea lost its chance to develop for several years and was divided into two countries by the destructive Korean war in 1950. But, today, Republic of Korea(South) has followed up advanced countries in economy, social and culture. ‘Hallyu’ has been spreading around the world. In addition to these developments, the reunification of South and North Korea will reinforce the prosperity of the Korean peninsula on a global scale. This article will talk about what would happen to the economy if South and North Korea reunified.
If there is the reunification, the economic activity will be boosted based on North Korea’s resources and South Korea’s technology. Since there are lots of mountains in North Korea, underground resources like magnesite, coal, graphite, aluminum, mica etc. must be rich. For example, iron ores are abundant in Ongjin and Eunyul, North Korea. Iron manufacturing industry using these iron ores is developed around Pyeongyang and Nampo. Also, plenty of graphites are lied in Chosan and Gangge, Pyeonganbuk-do, and Jueul, Hamgyeongbuk-do.
South Korea has been importing gold from abroad since 1998. But if there is the reunification, gold from Hwanghae-do and Pyeonganbuk-do can be digged, and we can save foreign currency. Also the amount of magnesite buried in North Korea is the best level around the world and it is possible that not only coal but also oil are buried in there.
There is a world widely well-known steelmaker, POSCO in South Korea. If POSCO’s technology of South Korea and abundant resources of North Korea are combined, we can make even better plate of steel. Using irons of good quality of North Korea, South Korea’s car companies can make better and cheaper cars. We can also use natural resources in various products.
North Korea is lack of food even if it has rich natural resources. It is because there are few plains compared to South Korea. Our compatriots in North Korea will not suffer from lack of food anymore if there is the reunification which can result in providing food to North region. As a result, all of us will be able to live an affluent life.
According to the data, South Korea’s national defense expenditure was about 20 billion won in 2005. It is essential to keep military forces for a country safety. For that, lots of military expenses are needed especially when a country is opposing against another country like South and North Korea. If reunified, the military size and expense can be controlled properly. For instance, if the number of soldiers is decreased, living expenses can be saved and people can have productive or meaningful time by studying or working instead of military training. Also the expenses in producing all sorts of weapons will be lessened and the left money can give a big hope to people by using it for social welfare like providing free medical treatment or giving a chance to study.
North Korea’s cities are only developed around Pyeongyang. So if North and South reunified, we have to make new territory development plan systematically such as moving or building new factory and government office. Also we have to do various works to shorten the difference of social and culture awareness between Southern and Northern people.
If there is the reunification, North and South Korea’s railroads will be connected to China’s railway and furthermore to transiberiano’s and Europe’s. Thus, first, transporting cost will decrease so the Korea’s price will become competitive. Second, we can retain abundant resources (oil, natural gas, timber) at cheaper and stable price stably from Russia. So we can make products cheaper and sell at a competitive price in the international markets. Third, with the reunification, the commerce will increase and the economy will develop in the whole Korean peninsula.