hankyoreh

By Park Byong-su, Senior Staff Writer 　

A white paper on the status of inter-Korean economic cooperation obtained by the Hankyoreh on Monday puts the estimated direct economic losses to South Korea from the deterioration of inter-Korean relations in the three years between the inauguration of the Lee Myung-bak administration in 2008 and 2010 at a full $4.6 billion. This is five times the estimated $834 million lost by North Korea. Estimates also put the indirect losses to South Korea from the failure to see production inducement and added value effects at an even greater $12.5 billion.

The white paper showed the greatest direct economic losses to South Korea as coming from the Kaesong Industrial Complex effort, at $2.3 billion. This was followed by $1.5 billion in losses from suspending all inter-Korean trade, $753.5 million from Mt. Kumkang tourism, $23 million from the rerouting transportation around North Korean airspace, and $22 million from Kaesong tourism.

The white paper was drafted following an examination of 154 companies taking part in inter-Korean economic cooperation. Taking place over three months from January 24, the study was conducted by an inter-Korean economic cooperation loss investigation team headed by Korea Logistics Forum President Kim Young-yoon, under the chairman of the National Assembly‘s Foreign Affairs, Trade and Unification Committee.

Since last year’s May 24 measures, which suspended South Korean trade and economic cooperation with North Korea, the South Korean government has emphasized the effectiveness of the action, contending that North Korea suffered economic losses of some $300 million over a one-year period. But with the latest study showing the damages to South Korea to be far greater, observers are questioning the efficacy of the policy of pressure against North Korea.

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