Policy Recommendation for the New Unification Minister and the Lee Jae-myung Administration

Progress in inter-Korean relations can now be achieved more effectively through economic cooperation than political unification. Given the current complex international landscape and divergent social systems, immediate political unification is unlikely. Therefore, a gradual and pragmatic approach centered on economic collaboration should be prioritized. With President Lee Jae-myung's inauguration and former Unification Minister Chung Dong-young nominated again as a candidate for the post, the following proposals are recommended based on his extensive experience in inter-Korean economic cooperation:

Prioritize Standardization of Inter-Korean Industrial Systems

South Korea should swiftly initiate the standardization of industrial and technological systems with North Korea, much like the West and East German efforts prior to reunification. In particular, the IT and science sectors present a cost-effective and high-impact starting point, where common standards can lead to rapid, tangible outcomes.

Unify Korean Language Usage and Keyboard Input Methods

A standardized Korean script system and keyboard input method are critical to improving communication and cooperation. Harmonizing these differences and applying a unified Korean language system in software development would significantly enhance efficiency in joint projects.

Promote Joint Development of E-Commerce and Digital Currency

Practical economic collaboration can be bolstered through the co-development of e-commerce platforms and digital currency. The 2007 K-Cash project in the Kaesong Industrial Complex serves as a precedent. Expanding on this, South and North Korea could implement a shared digital currency system to facilitate broader and more stable economic exchanges.

Reform the Inter-Korean Exchange and Cooperation Act

Legal barriers must be removed to ensure sustainable economic cooperation. The current law does not adequately reflect the realities of technological exchange and digital commerce. Legislative updates should include provisions for software and digital content exchange, local government-level partnerships, and clearer legal definitions for cooperative zones.

Economic cooperation between the two Koreas is essential not only for maintaining peace on the peninsula but also for enhancing future economic competitiveness. By redirecting resources from military spending and conflict-related costs toward development and public welfare, both Koreas can unlock new growth opportunities. This economic partnership could also contribute to broader stability and prosperity across Northeast Asia.

President Lee Jae-myung and Unification Minister nominee Chung Dong-young must now prepare for a new era of economic engagement between the Koreas. At this moment, pursuing achievable economic cooperation over unrealistic political unification is the most rational and beneficial path forward for both sides.