This study is a forward-looking study that deals with South Korea-North Korea-China economic cooperation amid rapid changes in the situation on the Korean Peninsula. The study consists of four chapters. In Chapter 2, following the introduction, each country’s position on economic cooperation between South Korea, North Korea and China is analyzed. Chapter 3 explores cooperation by sector and consists of six sections covering transportation and logistics; the energy sector; industrial complexes; the environment sector; education, science and technology; and the culture and tourism sectors. Each section examines the appropriateness of cooperation by sector, the status of cooperation between past and present cooperative projects, and future tasks and prospects. The last Chapter 4 summarizes the results of our analyses, and goes on to discuss economic cooperation between South Korea, North Korea and China in key areas such as Dandong, Shinuiju, Hunchun and Rason, and presents the limitations of this study. In particular, since cooperation cannot be considered separately from the sanctions against the North Korea, the study developed a policy roadmap by dividing cooperation policies according to the level of sanctions maintained and lifted.
   First of all, at the stage of maintaining sanctions, it will be necessary to push for cooperation unrelated to sanctions while efforts are made to build up experience and trust in cooperation between South Korea and China through various forms of bilateral cooperation. Therefore, in a situation where sanctions are maintained, cooperation in the three northeastern provinces of China (linking China’s One-Belt-One-Road Initiative with Korea’s New Northern Policy) and cooperation between the two Koreas and China in areas not affected by sanctions against the North should be pursued at the same time. The three northeastern provinces have failed to find new growth engines despite being areas where China’s state-level development plans, in line with the One-Belt-One-Road Initiative, the China-Mongolia-Russia Economic Corridor project, Changjitu (Jangil-do) development plan, the New Northeastern Promotion Plan and Liaoning Free Trade Zones all intersect. From Korea’s perspective, the northeast region of China is also the main target of its New Northern Policy, linking the Korean Peninsula to the One-Belt-One-Road Initiative through the China-Mongolia-Russia Economic Corridor. In addition, Northeast China is an area where many ethnic Koreans reside and share historical relics, and where platforms have already been formed for North Korean projects in Dandong, Hunchun and other areas, making it a region where the government and companies can build a bridgehead for the future development of North Korea. As the Northeast region of China shares similar demands for mutual cooperation with South Korea, the two need to actively pursue bilateral cooperation strategically while preparing for the development of North Korea and trilateral cooperation between South Korea, North Korea and China in the future. Second, cooperation in “software” areas, such as the environment sector, medical (sanitary) projects, education and tourism should be promoted first as a trilateral cooperation project unrelated to sanctions. Currently, international research on environmental issues such as the spread of fine dust in Northeast Asia and the destruction of North Korea’s domestic environment is urgently needed. In addition, health care and sanitation issues such as the recent African pig fever and the Changchun rabies vaccine incident are particularly grave matters which could escalate significantly if the epidemic spreads across the border. North Korea has poor quarantine and medical facilities and could be dealt a fatal blow. In response, South Korea and China should consider working actively with North Korea to jointly carry out control measures on both sides, border quarantine and expansion of medical facilities. We can also consider various knowledge-exchange projects to spread knowledge about the market economy and science technology to cultivate future North Korean talents. If such programs could convey the knowledge needed for market economy operations to the North Korea and foster talent, this would alleviate the expected side effects of the North’s reform and opening-up process. This would also be a measure to gain mutual trust by focusing on people’s livelihoods and educational issues before full-fledged economic cooperation. Also, joint research on tourism route development around the cross-border areas, such as the Tumen River and the Amnok (Yalu) River, can be pursued. The Tumen River-Amnok River belt, which runs across the Korean Peninsula and China, retains many historical legacies, including beautiful natural environments such as Mt. Baekdu and historic artifacts of the anti-Japanese resistance, which are expected to bring huge demand for tourism to the North Korea when it opens up. Limited cooperation is also possible in the transportation and logistics sectors. The establishment, joint investigation and studies for a railway between the two Koreas and China, and a road consultative body, in preparation for the establishment of the East Asian Railway Community would become possible. It is also necessary to discuss concrete measures to push forward the standardization of railway and road facilities, and to simplify customs clearance procedures in a rational manner. Another promising project would be to train transportation and logistics experts from North Korean workers in cooperation with China, as part of a transportation and logistics education project. Finally, though full-scale cooperation is currently impossible in the area of energy and industrial complexes while the current sanctions remain in place, it could be possible to push for joint research on cooperative projects and measures, albeit limited.
   Next, if sanctions are eased along with the denuclearization of North Korea, trilateral cooperation between South Korea, North Korea and China and other multilateral cooperation projects related to sanctions should be developed as a multi-pronged approach, while making efforts for cooperative development of the Korean Peninsula and Northeastern China. Through this process, the government should prepare a framework for developing the northern part of the Korean Peninsula and Northeast Asia. At this stage, various cooperative projects in sectors such as transportation, logistics and energy infrastructure construction (operating), industrial complexes, agriculture and fisheries, special economic zone development, tourism, education, environment, etc. proposed in this study could be carried out in the border areas between North Korea and China, such as Dandong-Sinuiju and Hunchun-Nason. In particular, there is a high possibility that connection of transportation and logistics infrastructure will be promoted first. The East Asian Railway Community initiative proposed by President Moon Jae-in will link the Korean Peninsula to Northeast China, and continue on to Mongolia, Russia and Europe once it is connected, thus serving as a crucial corridor for multilateral cooperation in various fields.
   As a final step, if the sanctions against North Korea are fully lifted, full-scale bilateral and multilateral economic cooperation will become possible without restrictions. In particular, if the so-called “Northeast Asian Economic Corridor” is established, it could be organically combined with China’s One-Belt-One-Road Initiative, South Korea’s New Economic Map Initiative of the Korean Peninsula, the New Northern Policy and North Korea’s reform and opening policies. With Northeast Asia connected through transportation, logistics and energy networks and common markets formed with value chains by industry, the possibility of developing into a Northeast Asia economic community can finally be explored.
   This study is meaningful in that it was the first comprehensive approach to South Korea-North Korea-China cooperation projects in the face of rapid changes in the situation on the Korean Peninsula, seeking possible directions for cooperation by sector and providing basic ideas for cooperation. However, in order to promote practical cooperation, it is necessary to overcome a number of difficulties that have not been examined rigorously in this study. First of all, the policy directions of the three parties (South Korea, North Korea, China) on these issues must be aligned with each other, the sanctions currently preventing cooperation with the North should be eased or lifted in line with progress in denuclearization, and the projects that will be pursued must be able to yield adequate returns. There are an additional host of challenges, including the need to fund projects and to derive specific cooperative models and projects in each sector. Therefore, subsequent work will be necessary to cover areas not examined in depth in the current study.