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제목 Professor Gap-young Lee, presented institutionalization of national price at 11th Tumen Forum
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작성일 2018.10.26 00:00:00 조회수 157
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simple On 13-15th October, 11th Tumen Forum was held in Yanbian University. Within approximate 300 scholars' participation for the event, Professor Gap-young Lee presented "Institutionalization of 'National Price' for economic exchange between South and North".
newsDay 2018.10.26

On 13-15th October, 11th Tumen Forum was held in Yanbian University. Within approximate 300 scholars' participation for the event, Professor Gap-young Lee presented "Institutionalization of 'National Price' for economic exchange between South and North".

Professor Lee suggested a new institute tool 'National Price' in terms of newly predicted economic exchange through peaceful relationship. To quote his words from the presentation, "South-North trade and commerce will happen in a minute, as it never stopped even during 1999 and 2002 clash in Yeonpyeongdo Island. Especially since 2008, Kim Jong-un is highly focusing on strengthening its economy by stating 'People's Life-First'. Under the support of South Korean President Moon, who expects to enter the new phase by designing the 'New Economy Map of Korean Peninsula', trade and commerce should be the first sector to focus."

He added, "Especially within the appearance of 'Jangmadang' in North Korea after passing through 'North Korean Famine' in 1990s, around a million people work for their living in about 400 different 'Jangmadang'. It seems like North Korean economy already formed a dual structure of planned economy and Jangmadang. Considering the price level in Jangmadang and wage of laborers, there are some regional difference, but already, people cannot maintain their lives with only free distribution. They maintain their lives by participating in 'Jangmadang', the market."

There is a necessity to quickly proceed South-North trade and commerce not only in the mutual economic understanding but also in humanitarian grounds. Looking back on the history, we can found out that we need a special system. Since 1988, economic cooperation and exchange remained mostly on the Kaesong Industrial Complex. Until 2015, when the complex closed, the industry 99% belonged and contributed to North Korea. The economic exchange has lasted for 30 years, but we cannot clearly state that was the exchange that civil could experience closely in their life.

According to Professor Lee, "The reality of full-scale economic exchange that both South and North publics could feel and experience out of the planned plant is being realized. That is why we need a new economic device." The idea started from 'Brother Price', which used to be applied in Socialism nations. Long time ago, Soviet Union bought banana from Cuba more expensive than international price but exported petroleum cheaper than international price, considering the inequal development of brother nations. With this idea, South Korea could import North Korean products cheaper than the international price and export domestic products cheaper.

Applying this 'National Price' to private market could contribute to imbalance accumulation of wealth on private companies, as well as in North Korea, to 'Don-ju', the emerging capitalist. So the 'National Price' should be limitedly applied to public exchange sector and final goods. That will contribute to overcome the difference between the price level in 'Jangmadang' and wage level in North Korea. As North Korean economy returns back to certain point, trade should return to the international standard.

However, 'National Price' has a lot of shortcomings to overcome. First thing to start over, 'National Price' should derive enough persuasion and empathy from publics to gain support. West Germany put a lot of effort to form a social consensus in terms of providing enormous support and favor toward East Germany. Secondly, logic and effort to dissolve economic restriction in North Korea should be assumed to adapt 'National Price'. Third, WTO or other international organization could raise a hare on 'National Price'. Even it is domestic transaction, restriction from international economic organization might be inevitable.

Professor Lee finished his presentation by mentioning, "National agreement should be assumed to institutionalized 'National Price'. South-North economic exchange will be the beginning of South and North Korea to symbiosis and coexist. The economic exchange should resurrect in a way that public strongly supports."

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