Unification of Koreas would cost $3 trillion: experts

Elderly South Koreans, who were separated from their families during the 1950-53 Korean War, hold a traditional ritual for their deceased relatives at the Imjingak peace park in Paju in North Korea, near the inter-Korea border, Tuesday. Photo: AFP

The cost of reunifying the two Koreas, split since shortly after World War II, would cost about 3.5 quadrillion won ($3 trillion), the Federation of Korean Industries said Tuesday.

None of 20 economists surveyed by the federation expected reunification in the next five years, but almost half said it would happen in 10 to 20 years.

Nearly half also said the largest cost associated with reunification would be in efforts to cut the social gap between the wealthy South and the impoverished North.

"The costs to minimize the gap between South and North Korea over the long term are expected to be greater than the initial cost of reunification," the federation said in its report.

Concerns about the massive costs prompted South Korean President Lee Myung-bak to propose a "reunification tax" last month.

Reuters