Kim Jong-hoon, chairman of HanmiGlobal, said on the 17th, "The best solution to instantly resolve the demographic issues caused by low growth and low birth rates is 'unification.'"
On the same day, Chairman Kim spoke at the congratulatory remarks of the seminar titled 'Unification of Germany's Land Development and the Land Strategy of the Korean Peninsula' held by the Construction Industry Vision Forum and the Korean Peninsula Future Forum at the Construction Center in Nonhyeon-dong, Gangnam-gu, Seoul. HanmiGlobal sponsored the seminar.
Kim noted, "The best solution to instantly resolve chronic low growth and low birth rate-related demographic issues, which are the most serious problems facing South Korea, is 'unification,'" adding that "we can create new momentum for enhancing national competitiveness through the synergy between the two Koreas." The seminar analyzed the specific expenses and outcomes of German unification and proposed an efficient land development strategy for unification tailored to the unique context of the Korean Peninsula.
Lee Sang-jun, senior researcher at the Korea Land Institute, presented on the topic of 'Land Development Cases and Implications of Unified Germany.' He stated, "Germany invested between 1 trillion euros at minimum and 2 trillion euros (about 3200 trillion won) over 20 years after unification," noting that "the federal government announced that the 15-year input expense was 1.4 trillion euros (2240 trillion won), which was 2.8 times the expected amount in 1991." According to the presentation materials, the infrastructure sector accounted for 12.5% of the total unification costs, while economic revitalization investment support was 7%.
The senior researcher stated, "Although there were significant achievements in the infrastructure sector, such as modernization of railways and improvements in living environments after German unification, there were also substantial side effects, including real estate ownership disputes, regional imbalances, and housing vacancies," adding that "particularly, whereas the economic gap between East and West Germany was 3 to 1, the current gap between North and South Korea is much larger at 30 to 1, and we are facing complex challenges such as population decline and uncertainties in the international situation."
Kim Min-a, associate researcher at the Korea Land Institute, emphasized the need for an innovative land development strategy for a unified Korean Peninsula that reflects carbon neutrality and sustainable development goals (SDGs). She further stated, "In particular, during the process of developing North Korean regions, we should integrate cutting-edge technologies such as smart cities to establish the most innovative land and urban development model in Northeast Asia."
The researcher emphasized the importance of an open land development strategy to strengthen the position of the Korean Peninsula as a hub of interaction between continental and maritime powers for peace and prosperity in the region. Specifically, she suggested enhancements to the Asian Highway (AH), the continental railways (TCR, TSR), consolidation of roads and railways in the Korean Peninsula, expansion of Northeast Asian port city networks (port alliance), and establishment of a Northeast Asian energy network.
The two researchers collectively highlighted financing options for development, proposing a 'mixed finance' approach of private and public funds, as well as attracting funds associated with sustainable development goals (SDGs). Germany supported East German regions through bond issuance and federal government subsidies totaling 82.2 billion euros from 1990 to 1994 via the German Unification Fund at the outset of unification. From 1995 to 2004, the support amounted to 105 billion euros, and from 2005 to 2019, it reached 156 billion euros.
Associate researcher Kim Min-a noted that "South Korea should actively consider sourcing required funds through international private capital rather than government finances and seek ways to attract sustainable development funds, including infrastructure development in water resources and integration of advanced technologies like smart cities in North Korean regions."
The subsequent panel discussion was chaired by Cheon Young-woo, former Chief of National Security Office at the Blue House, and included Son Hong-il, director of the German Institute for Political and Cultural Studies; Kim Young-chan, former head of the Bank of Korea Frankfurt office; Park Jin-cheol, president of the Korean Architectural Society; and Kim Sung-ryul, a professor at Busan University of Foreign Studies, who is the first defector to hold a full professorship in South Korea.
Participants expressed their agreement that "unification is unpredictable, but preparation is essential," emphasizing the need for systematic preparation and diverse private exchanges to respond to the complex challenges currently facing the Korean Peninsula, including an economic gap exceeding 30 times, an aging population, a climate crisis, and instability in international relations.