SEOUL, Aug. 9 (Korea Bizwire) – South Korea’s per capita income could plunge by up to 30 percent if the divided two Koreas are unified, a report showed Tuesday.
In the report to assess a unified peninsula’s economic potential, the Korea Development Institute (KDI) estimated that South Korea’s per capita gross national income (GNI) could decrease by between 15 and 30 percent in the first decade following the reunification.
“The size of Pyongyang’s economy would become about 90 percent of Seoul’s if Seoul continues to give support for about 30 years,” said Moon Eui-sol, who wrote the KDI report. Such support includes establishing social infrastructure and developing industrial complexes.
According to a separate report, North Korea’s per capita GNI was estimated at 1.39 million won (US$1,250), which is far lower than South Korea’s 30.9 million won in 2015.
In contrast, other professors argued that a unified Korean Peninsula could see its economy grow since the two Koreas would not need to spend big on defense-related things and preparation for reunification.
According to a report released by professor Shin Chang-min of Chungang University, the gross domestic product (GDP) of the united Korea would grow by 11 percent annually.