Restructuring and reforming the South Korean economy so it resumes and sustains its high growth trajectory is a formidable problem that will engage the attention of policy makers in the coming years. Reunification of the peninsula, while a separable problem, will in the longer term merge with the restructuring of the South Korean economy. While the eventual costs of reunification will add a further burden, these costs can be limited and managed in ways that need not impose an insuperable burden on the economy's continued progress. The paper presents a simple model of Korean reunification costs that supports this conclusion.
Originally published in: Patterns of Inter Korean Relations, Bae Ho Hahn and Chae-Jin Lee, ed., Sejong Institute,1999, pp. 163-184.
This report is part of the RAND Corporation reprint series. The Reprint was a product of the RAND Corporation from 1992 to 2011 that represented previously published journal articles, book chapters, and reports with the permission of the publisher. RAND reprints were formally reviewed in accordance with the publisher's editorial policy and compliant with RAND's rigorous quality assurance standards for quality and objectivity. For select current RAND journal articles, see External Publications.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.