The costs of unification involved in Korean unification can be categorized as follows: ① crisis management costs for alleviating economic and social shocks from unification (including costs of institutional integration), ② reconstruction costs for the North Korean economy, and ③ fiscal transfers from the South to the North in the form of income subsidies. We deal with how to secure finances externally for costs of reconstruction for the North Korean economy, which would be financed by the international private sector or through PPP (public-private partnership).
We present three pre-conditions for Korean unification after carefully re-examining the German unification process: ① The North Korean people should want unification with the South, ② the North Korean authorities actually representing the wishes of the North Korean people should be present in North Korea, and ③ the international community, including the US and China, needs to be cooperative (or at least, not get in each others’ way). The main implication of these pre-conditions are that political unification of the two Koreas will not be accomplished within a short period of time. Thus, in suggesting realistic policy recommendations for external financing, we need to look at the entire picture regarding the unification process. After political unification, the Government of a unified Korea will become the subject of external financing, whereas before the unification, North Korean authorities will have the primary role in the northern part of the Korean Peninsula.
As a matter of fact, there likely will not be any major issues left for external financing following a successful political unification of Korea. For the successful achievement of Korean unification, there should be an interim period of negotiation between the two Korean authorities for addressing major concerns after political unification of the two Koreas - a period to be referred to as “the imminent unification period.” During this period, the international investors would be uneasy about what would happen after the Korean unification and associated uncertainties.
How to maintain the soundness of financial markets in the imminent unification period will be the most important issue in the course of Korean unification. We present policy recommendations for it. Extending the analysis to the entire period of Korean unification, the most viable method of financing the reconstruction of the North Korean economy would be private-public partnership (PPP). As time goes by, the financing ability of the international public sector would decline and thus, would warrant an increased role of the international private sector. Especially the period after political unification, greater utilization of public-private partnership (PPP) would be feasible. We also present policy recommendations for the period prior to political unification. After our repeated search for ways to finance unification costs from abroad, we have come unexpectedly to conclude that maintaining the fiscal soundness should be the best way to counter the potential costs of Korean unification.
South Korea ratio of national debt to GDP is already over 30 percent and is expected to exceed 35 percent in the next two years. The ratio for West Germany before the German unification was less than 40 percent. Thus, the most effective way in terms of preparing for Korean unification is to build up South Korea’s economic power to be as powerful as possible, and return the fiscal conditions of the Government of South Korea to soundness, setting a limit on the ratio of the national debt to the GDP. 

서언

국문요약

제1장 서론: 연구의 목적과 포괄 범위

제2장 통일의 필요조건과 남북통일과정

1. 통일의 필요조건
2. 남북통일과정
3. 분석의 전제: 북한의 해외재원 조달여건 충족

제3장 해외재원 조달의 개념과 형태

1. 양자간 공적개발원조와 정부간 차관
2. 다자간 국제금융기구의 자금지원
3. 국제금융시장을 통한 민간재원 조달
4. 민관협력(PPP)
5. 채무재조정을 통한 신규자금 도입

제4장 남북간 정치적 통일 이전 단계에서의 해외재원 조달: 주요 이슈와 정책방안

1. 북한의 국제민간자본 유치 관련
2. 북한의 국제금융기구와의 협력 관련
3. 국제개발은행과 양자간 개발금융기관과의 민관협력을 통한 해외재원 조달

제5장 통일 임박 시기 및 정치적 통일 초기의 해외재원 조달: 주요 이슈와 정책방안

1. 통일 임박 시기의 금융시장 안정대책
2. 통일 임박 시기와 통일 초기 단계 국제금융기구 협력
3. 국제금융시장을 통한 해외재원 조달

제6장 결론 및 시사점

1. 정치적 통일 이전 남북통일과정에서의 주요 이슈와 정책방안
2. 통일 임박 시기와 정치적 통일 초기의 주요 이슈와 정책방안
3. 지금 해야 할 일(최우선과제와 지금도 할 수 있는 과제)

참고문헌

부록 1. 독일과 시장경제 체제이행국의 해외재원 조달 사례

1. 독일통일 전후 독일경제의 변화와 EU의 지원
2. 중국의 해외재원 조달 사례
3. 베트남의 해외재원 조달 사례
4. 미얀마의 해외재원 조달 사례

부록 2. 민관협력(PPP)

1. PPP 개관
2. PPP의 구조
3. PPP의 유형
4. 예상되는 문제점

Executive Summary