South Korea Leader Offers North Reunification Tax Incentive
August 15, 2010
(ChattahBox) – Could common sense someday prevail as reports swirl about the worsening health of North Korean leader Kim Jong-il? Previous South Korean leaders have brought up the sensitive subject of reunification in the past but really didn’t provide much incentive to do so. But current South Korean President Lee Myung-bak has come up with a unique approach, by proposing a special tax to cover the enormous cost of rejoining its neighbor to the north. Bringing impoverished North Korea up to speed with South Korea’s thriving economy could cost from a few hundred billion dollars to up to $1 trillion. “Reunification will definitely come,” said Lee via the NY Times. “I believe that the time has come to start discussing realistic policies to prepare for that day, such as a reunification tax.” North Korea has yet to respond, but analysts heavily doubt that it will react with anything but anger given their track record. The two neighbors still remain technically at war after having signed only a cease-fire at the end of the 1950-53 Korean War. “North Korea will take a unification tax as the expression of a South Korean attempt to prepare for a sudden collapse of the North Korean government,” one expert said.