Evaluation and Tasks of the Peace-Economy Process

Abstract

The New Economic Initiative on the Korean Peninsula, which aims to promote balanced development of the national economy and joint prosperity between the two Koreas through the experience of inter-Korean economic cooperation over the past three decades and the results of high-level inter-Korean and summit agreements, can be regarded as the result of intense consideration of the present and future of inter-Korean economic cooperation. The South Korean government s new economic initiative on the Korean Peninsula, the North Korean government s concerns about economic development and stability of the people s livelihoods, and its willingness to revitalize the economic development zone were met to produce the April 27 Panmunjom Declaration and the September 19 Pyongyang Joint Declaration in 2018. The agreement between the leaders of the two Koreas in 2018 is significant in that it reflects the ideas related to inter-Korean economic cooperation that the conservative and progressive camps of the South have so far pursued or conceived. In particular, the fact that North Korea accepted the South s proposal for cooperation in the form of a special East-West Sea zone reflecting its economic development zone policy raises expectations that new economic cooperation on the Korean Peninsula will be possible, which is different from the previous inter-Korean economic cooperation. In light of 33 years of experience in inter-Korean economic cooperation, in order to realize a peace-economy through the new economic initiative on the Korean Peninsula, the principle of reciprocity, support, and cooperation based on the consensus of the international community, national consensus, and the activeness of private proponents should be guaranteed. In order to realize the New Economic Initiative on the Korean Peninsula, it should be based on an understanding of the interests and intentions of its counterpart, North Korea, and it can secure momentum by making neighboring countries on the Korean Peninsula feel that they can become direct beneficiaries of a peace-economy. In order to realize a peace-economy, the government should push ahead with its policies with public support and consensus on balanced development and joint prosperity of the national economy in mind. Creative and active business activities by entrepreneurs are also essential in order to produce economic results of creating new growth engines that the Korean Peninsula s new economic initiative aims to achieve.