2008년 12권 1호. 통일비용과 남북협력기금 _ 신동천 외
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The purpose of the paper is to estimate an optimal size of the inter-Korean Cooperation Fund. The inter-Korean Cooperation Fund was established by the South Korean Government to support the cooperation and exchange between the South and North Korea on the purpose of the reduction of tension and the peaceful unification in the Korean peninsula. From the German unification experience, we learned that the unification cost was too costly to the German people. The German government spent 5% of GDP annually for 10 years after unification in order to reduce the economic gap between the East and West Germany. Currently the North Korean economic situation gets much worse than that of the former East Germany. If the unification is achieved under the current situation, the South Korea will face unbearable economic burden. Therefore the South Korean government should increase the size of the inter-Korean Cooperation Fund in order to mitigate costly unification cost in the future. In consideration of the German experience, we suggest that the optimal annual accumulation of the Fund be 3% of GDP.
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