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Think of this scenario. North Korea collapses. The Korean tax payer is loaded with a new Value Added Tax (VAT) and a hefty income tax to pay for unification. Japan, the United States, China all come to the party and contribute significant amounts to help stabilise and reform the north. But only then do people realise…
All the contracts for reconstruction, infrastructure, etc are going to chaebol. All the chaebol foreign investment is moving away from Vietnam, Taiwan and China and towards North Korea. All the labour intensive manufacturing in the South moves North; any labour intensive jobs left in the South are rapidly filled by the movement of northerners moving south on special family reunion visas; and the south’s rural sector is quickly faced by northern competition as rural reform and fertilisers flood the north’s rural sector.
There is one winner in all this – big industry. The chaebol. They get new markets, cheap labour and government money.
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4 responses so far ↓
1 qiikeze // Aug 30, 2010 at 7:17 am
Of course. This is capitalism. One man’s emergency is another man’s goldmine.
2 joeching // Sep 1, 2010 at 2:40 pm
u r under distorted propaganda from america and its pet president li of s.korea.
once li got kick down, s.korea and japan would embrace north korea and the america nuke monkey would just pack up and leave.
3 nampa // Dec 14, 2010 at 9:37 am
No, what will happen is the cheabol will use the North as a colony; any industry there will be bought out and destroyed. The North will be a permanently depressed area relying on handouts–but cheabol profits will rise!
The GDR was much more powerful than N. Korea, in some ways S. Korea too, but the FRG destroyed the GDR industry to prevent competition and gain captive markets.
S. Korea is much poorer, and unification would be a permanent budget strain.
4 BVR // Jan 10, 2011 at 9:21 pm
Yaaaayyyy!!!!!
North Korea fallen? That will be a great event to see. NK is so weird and backward, totally behind in technology, infrastructure, social culture, and among many other things. I would rather see Korea united under a pro-democracy government.
DOWN WITH NORTH KOREA!!!!!!!!!!!!!!!!!!!!!
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