Think tank: Unified Korea presents major investment opportunity

SEOUL, July 13 (UPI) -- Unification of the two Koreas could bring about great changes, including the transformation of the corridor between Seoul and Pyongyang into northeast Asia's largest marketplace.

In a report released by South Korea's economic policy think tank Korea Development Institute, researcher Lee Seok said a new and powerful economy could emerge -- but at a significant cost, South Korean news agency Yonhap reported.

Lee said unification could cost South Korea 5 percent of annual GDP and that $3 trillion would be needed between 2020 and 2050 to meet the demands of a unified Korea.

But through unification, Lee said the Koreas and neighboring countries would be faced with a "tremendous investment opportunity."

South Korean newspaper Herald Business reported the integrated area between Pyongyang and Seoul would create space for 10 million inhabitants and would emerge as one of the most important consumer markets in the Asia region.

The South Korean researcher said closer integration of the two economies also would have an impact on North Korea's and China's hinterlands. Both economies would have the opportunity to develop innovatively in step with the pace of growth in the region.

Trilateral cooperation among South Korea, China and North Korea is also needed, according to Korea Small Business Institute's Lee Jae-ho.

Lee said South Korean manufacturers should work with Chinese firms to employ North Korean workers because Pyongyang has banned its workers from working at South Korean factories, according to JoongAng Daily.