Inter-Korean Economic Cooperation for North Korea's Economic Reform

Overview

The Institute for East Asian Studies (EAI) publishes the National Security Panel Report Series, which provides in-depth analysis of major foreign policy and security issues and presents realistic policy alternatives. This series is produced by the National Security Panel (Chairman: Ha Young-sun, EAI Director), composed of domestic foreign policy and security experts.

This 18th NSP report is the fifth report in the series titled [North Korea's Nuclear Crisis and Peace on the Korean Peninsula]. The National Security Panel conducted an in-depth study for seven months following the Six-Party Talks on September 6, 2005, examining the interrelationships between North Korea's denuclearization, coercive diplomacy, economic assistance, normalization of relations, North Korean human rights, and a peace regime. The report, titled "Inter-Korean Economic Cooperation for North Korea's Economic Reform," was primarily authored by committee member Oh Seung-ryeol (Graduate School of International and Area Studies, Hankuk University of Foreign Studies).

The 18th report evaluates current inter-Korean economic cooperation from the perspective of policy efficiency and argues that economic compensation offered as a quid pro quo for resolving the North Korean nuclear issue should be separated from inter-Korean economic cooperation aimed at promoting reform and development of the North Korean economy. Committee member Oh Seung-ryeol emphasizes that for inter-Korean economic cooperation to foster North Korea's reform and opening, a clear division of roles between the government and private enterprises is necessary, and policy logic that can objectively verify the connection between inter-Korean economic cooperation and North Korean change must be developed.

"North Korea's reform and opening is the fundamental means to resolve the nuclear issue and the basic prerequisite for ensuring peace on the Korean Peninsula. Inter-Korean economic cooperation that bypasses the nuclear issue has its limitations. Unilateral aid to North Korea that expects mutual understanding without a logical framework is disadvantageous for building domestic consensus and securing the support of neighboring countries." (From the main text)

Author

Oh Seung-ryeol, Professor, Department of Chinese Studies, College of Chinese Studies, Hankuk University of Foreign Studies