A Note on Unifying the Two Korean Economies

Abstract

This note is written in the hope of contributing to a debate regarding the privatization of state-owned enterprises and collective farms in North Korea if and when unification takes place upon the collapse of the North Korean regime. The German experience of unification suggests that the task of privatization should be separated from that of restructuring and employment creation. A comprehensive development plan as well as an efficient and equitable privatization method are thus needed to minimize the cost of unification on the Korean peninsular.