An Economic Model of Korean Reunification

Aims to find an appropriate economic model for the reunification question. Perhaps the most important economic issue is what model is to be applied in integrating the two Koreas into a single, viable and eventually highly‐competitive economy. Because of the dissimilarities between the German and Korean economies, and the enormous economic problems created by the swift German reunification, the instant‐reunification German model was rejected. Instead, proposes a more gradual, four‐stage economic integration model for Korea, which was divided in 1945. For a successful economic integration of the two countries, economic reforms should take place in North Korea since the North Korean economy has been afflicted with too many difficult problems, mainly caused by a rigid, centrally‐planned, command economy.