An Essay on Special Economic Zone in North Korea : Focused on the Case of Masan Free Export Zone
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Since the 1990s, the North Korea's economic fundamental has been extremely weak. The level of North Korea's economic state is under the level of South Korea's 70s economic state.
If the situation is prolonged by both Koreas' indifferences, South Korea should expense the huge cost of unification as the Germany's case.
So, I think that We(South Koreans) have to prepare for the unification by making the program to drive the North Korea's industrialization and infrastructure development.
To reconstruct the North Korea's economy, I consider the South Korea's success, Masan free export zone as the best case study in applying the North Korea region.
As yon know, Special Economic Zone is the answer to the program to reconstruct the North Korea's economy.
In that case, the conditions of foundation and success for Special Economic Zone are that first, the closeness of sea, to save time to delivery goods, services and law materials, second, the convenience of traffic, to transfer other countries by using airport, train, and ship, third, the tax credit against income tax on profits of corporation's operations in the North Korea and the interest it earns on those profits which remain in the North Korea, most of all, fourth, the removal of investment risk in the North Korea.
The last point is that both Koreas' policy makers have to have the consistency and strong will to drive the North Korea's economic fundamental and South Koreans have to understand the policy about the North Korea's driving program, not the bailing out South Korea's wealth but the reduction of South Korea's burden in the case of unification.
If the Special Economic Zone program is success in the North Korea, I am sure that the North Korea will be a qualified participant in the world economy.
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