Unification fund idea creates stir

By Kim Young-jin

Seoul’s proposal to raise nearly $50 billion to prepare for eventual reunification with North Korea by asking citizens to donate to a special fund is drawing a mixed early reaction.

Analysts widely agree on the need to begin preparing for reunification, projected to cost between $50 and $224 billion. How much the public is willing to fork over amid ongoing cross-border tension and economic worries, however, remains unclear.

The proposal, made by Unification Minister Yu Woo-ik last week, comes after Seoul’s idea for a special tax last year to prepare for unification was met with public apprehension.

Officials liken the proposed fund to a “pot” to which a variety of possible funding sources could contribute, including private donations and budget surpluses. The special tax, still under consideration, could also go towards the target amount, which is the minimum projected cost of the unification.

Public sentiment over such measures is underpinned by a complex slew of factors from long-held fears of having to incorporate the North’s impoverished population of 24 million to questions over how the funds are to be used.

“If the North were to collapse it would be chaos so I’m willing to donate around 5 percent of my annual salary,” said Lee, a 34-year-old office worker in Seoul.

Yu said government agencies were nearing an agreement over the account and hoped lawmakers would pass legislation within this year. Not only South Koreans but overseas Koreans and other foreigners could contribute if the fund becomes operational.

Some skeptics say economic factors including skyrocketing household debt could drag on efforts to raise funds from citizens. Statistics show the nation’s consumer debt is headed towards a quadrillion won, roughly equivalent to last year’s gross national product.

But an officer of a relief agency, who wished not to be named, said economic concerns could be outweighed by political ones.

“Koreans are more willing these days to help out those in need especially in the case of disasters,” he said. “But when it comes to unification, the timing is not good. If North-South relations were better, I think people would be able to envision unification in the future and be more willing to pitch in.”

The remark underscored how murky the discourse over unification has become at a time of strained relations.

Most officials lean toward a gradual joining of the sides through economic cooperation over decades. But Pyongyang’s lowly economic situation and growing isolation have many concerned about contingencies.

While seeking to change Pyongyang’s behavior with a tough stance on its nuclear program, the Lee Myung-bak administration has made concerted efforts to call attention to the need to prepare for unification, saying it could happen sooner than expected. The North lashes out at such remarks, alleging that they aim to undermine its regime and induce unification by absorption.

The issue remains off the radar for many South Koreans amid the growing cultural and economic divide between the two countries, analysts say. Two deadly attacks by the North last year muddied prospects for reunification further.

Moon Chung-in, a professor of political science at Yonsei University, said the fund was a good idea but was skeptical of its feasibility given that Lee administration will leave office in 15 months.

“They need to be clearer about the usage of the funds and what their vision of unification is,” Moon said, adding Lee would find it hard to push the idea during the lame-duck phase of his presidency.

But others argue the fund is a creative step in the right direction.

“Minister Yu’s intention was to raise the issue so we could start talking about reunification preparedness,” Park Young-ho, an analyst with the Korea Institute for National Unification, said.

“This is more important than the raising of funds because the majority of South Koreans are not concerned about unification. It’s a future-oriented approach.”

Still, the relief worker who spoke on condition of anonymity said that in light of the political tensions he would continue to donate towards helping the North Korean people rather than the unification fund.

“Right now unification is like grabbing at thin air. I can’t envision it because relations are bad,” he said.