Issue Focus

North Korea's major infrastructure construction project costs are estimated at about 306 trillion won over 10 years. The cost of input by facility is KRW 106,816 billion for housing, KRW 25,797.2 billion for electric power and energy, KRW 43,878 billion for roads, KRW 41,433 billion for railways, KRW 8,532.8 billion for port logistics, KRW 1,647,700 million for airport, KRW 72,121 billion for industrial complex, The tourism complex was estimated at 5 trillion won, and the agricultural development was estimated at 1,680 billion won. As the infrastructure development of North Korea takes a great deal of resources, it is necessary to consider how to finance these resources if South Korea actively participates in North Korea's infrastructure development projects. The South and North Korean cooperation fund should be considered as a means of funding the construction of the infrastructure of the North, and effective support for these projects should be pursued in the future. It is estimated that North Korea's infrastructure construction project cost is about 306 trillion won for 10 years. Assuming that South Korea accounts for 1/4 of the total, the construction project cost is 76.5 trillion won, and annual funding amount is 7.6 trillion won. If North Korea's denuclearization progresses and the international community's sanctions against North Korea are lifted, it is expected that major nations such as China will participate in North Korea development. In the future, it is necessary for South Korea to play a leading role in the national and economic aspects of the North Korean infrastructure development project. Establishment of Korean Peninsula Development Fund [Installation method] Separate the South and North Korean cooperation funds from the South and North Korean cooperation accounts and the development accounts of the Korean peninsula, and promote free and subsidized support for the expansion of the infrastructure in the Korean peninsula. [Fund Raising] If a certain percentage of the "transportation, energy, and environmental taxes" is transferred and the resources are set aside, it is possible to construct more than 5 trillion won per year and cumulative 58 trillion won for 10 years. [Operational plan] The specialization of fund management, the principle of dependency, and the top priority support for the business connected with the South Korean economy [Expected Effects] To revitalize South Korea's economy and contribute to job creation, and to actively support the growth of the North Korean economy, restoring homogeneity of the people, establishing peace on the Korean Peninsula, and reducing the cost of unification in the future