1. Backgrounds
ㅁ We need to take a new stage to march toward a "greater” Korea.
o Only in a half century, Korea realized both economic development and democracy, and transformed itself from a beneficiary to a donor of international aid.
o A mission of our time is to create a greater Korea by advancing social system.
- National unification is a critical task that must be realized in the process.
o The year 2010 marks the 65th anniversary of our independence and 60th anniversary of the Korean War, a meaningful year to give new thoughts on national unification.
- National unification will bring genuine independence to the Korean Peninsula and open a new chapter of our history.
o We should improve national capability with greater plans for the future.
ㅁ We need systemic plans for national unification, reflecting the reality of the Korean peninsula.
o To succeed and develope the National Community Unification Formula
o To reflect changing conditions and inter-Korean relations
o To set concrete plans for peaceful unification
ㅁ We need to change our strategies from passive management of national division to active preparation for unification.
o Unification will happen. Therefore, preparation will determine the direction of unification and the future of Korea.
- We should improve human, physical and political capacities to prepare national unification.
o Plan for establishing three (peace, economic, and national) communities is presented as a detailed future unification plan
- "Unification Tax" is a real and substantial means to finance unification preparations.
2. Plan for unification with establishing 3 communities
1. Concept
o President Lee presents a future vision for peaceful unification and new paradigm for inter-Korean relations.
- We are going to pursue national unification through establishing a community based on mutual respect and cooperation.
o In order to achieve national unification, we need to establish communities as follows;
- Peace community: brining peace on the Korean peninsula by denuclearization
- Economic community: exchanges and cooperation, support for economic development of North Korea, and economic integration
- National community: meeting challenges in each sector for peaceful unification
o We should succeed and develop the National Community Unification Formula.
- While succeeding the spirit of the National Community Unification Formula, “peace community” and “economic community” should be established as concrete action plans for the stage of “reconciliation and cooperation.”
- Establishing a peace community based on denuclearization is our primary task.
2. Three Communities
【Peace Community】
o We need to bring genuine peace on the Korean peninsula by solving North Korean nuclear conundrum.
※ Concrete denuclearization measures should be implemented through 'Grand Bargain.’
o We need to carry out practical tasks such as arms control for maintaining peace on the Korean peninsula.
【Economic Community】
o We should develop inter-Korean exchanges and cooperation in a stable manner and accelerate economic integration.
o We need to draw international collaboration to support the North Korea's economic development.
o With implementing 'Vision 3000: Denuclearization and Openness’, we should enhance quality of life in the North and narrow economic gap between two Koreas.
【Community of the Korean Nation】
o We need to recover the homogeneity of North and South Korea and establish inter-Korean relations based on “mutual benefits and common prosperity.”
o We should build a community where dignity, basic rights, freedom and welfare of all individuals are guaranteed.
3. Process
o We are going to establish a community by developing inter-Korean relations based on mutual benefits and common prosperity.
o “Peace community”, “economic community” and “National community” can be established in a complementary manner rather than in sequence.
- “Peace community” and “economic community” will complement each other in their functions and generate synergy effects.
- Strengthened and developed inter-Korean exchanges and cooperation will facilitate the establishment of “economic community” and “national community” at the same time.
o The most urgent task is to settle peace and stability on the Korean peninsula through denuclearization.
3. Unification Tax
1. Concept
o Unification tax should be seriously considered in the process of preparing unification.
- It is not just about collecting tax, but a starting point to comprehensively discuss the preparation and process of unification and the way to finance from the middle and long term perspective.
* President doesn’t call for the immediate imposition of a unification tax.
o We expect to build a social consensus through public discussions on preparing unification process;
- What is the right direction of unification?
- What is the benefits and utility of unification?
- What should we do before and after unification as well as during the integration process?
- How and how much do we finance for unification?
2. Unification Cost
o The unification cost means the cost that will incur during the preparation period, at the very moment of unification, and after unification.
o The unification cost has great variations depending on how to estimate △the time and way of unification (gradual or radical), △the scope and level of integration △the period of time to bear the cost.
- Therefore, there are wide variations in estimation among institutions, and the difference between the maximum and minimum cost is huge as well.
< Note: German unification cost>
o The German government has not officially announced the unification cost since 1999.
- But, taking the estimated figures projected by German private institutions into consideration, the total cost for German unification is estimated at 2 trillion euro from 1990 to 2009. ( * 100 billion euro (150 trillion won) per year)
o This figure is the total cost that incurs in public sectors paid by West Germany for East Germany.
- The annual cost, 100 billion euro, amounts to 4~5% of the annual GDP of the West Germany, or 30% of the annual GDP of the East Germany.
2. Unification Benefits
o Unification is a huge project generating enormous benefits.
- The benefits lead to creation of new values, eliminating national division costs.
o First of all, unification will reduce the costs caused by national division.
- Defense cost will be reduced while anxiety related to security threats by the North is relieved.
- Suffers caused by division, such as separated family issues, will be alleviated while inevitable social spending caused by inter-Korean confrontation will be reduced.
- Korean risk, which has always been pointed as the culprit of downgrade of credit rating by international credit ratings agencies, will be also removed.
o Furthermore, unification will create various tangible and intangible benefits.
① We can overcome national division and recover the national identity as one people and one nation.
② Unified Korea will emerge as a middle power with 80 million populations ranking with Germany, France, or England.
③ We can have a larger domestic market with 80 million customers and secure a new growth engine through overcoming geological division.
④ The Korean peninsula is located in the center of the market that consists of the “Pan-Yellow Sea Region” and the “Pan East Sea Region”, including 640 million populations with 7 trillion won GDP.
⑤ We can improve the national status in the international arena while create political, social, and spiritual value.
⇒ Goldman Sacks estimates that the GDP of the unified Korea will be similar to or surpass that of G7 countries apart from the U.S. in 2050.
2. Timing for public discussions on unification issues
o It is high time to thoroughly discuss future unification and its preparation.
- Since it takes much efforts and costs to establish a community of Korean nation, the faster we prepare, the less unification cost will be spent.
- Unprepared unification will result in trial and error, chaos, and inefficiency.
o we need to build a social consensus through conducting research and analysis, consulting with experts, and collecting public opinions.
- We should design the fairest and the most effective ways, such as effect on Korean economy and national psyche.
