SEOUL, KOREA - A study said the productivity level of North Korea is only one 21st of that in the south. According to a research report "Comparison of Labor Productivity between South and North Korea" published by Hyundai Economic Research Institute on October 26, the per-capita productivity of North Korean workers in all industries in 2012 was 2.7 million won, less than 5 percent of South Korea's 55.8 million won.

 

According to the report, the north's labor productivity fell short of increasing 69 percent (1.1 million won) for 22 years from 1.6 million won in 1990. This is largely because of the "Arduous March" during the 1990s suffered by North Koreans including the famine and other economic difficulties following the collapse of the Soviet Union. Accordingly, the productivity gap between the north and south has widened to 21 times from seven times in 1990.

 

Lee Yong-hwa, research fellow and the principal author of the report, said, "In order to reduce the cost following the unification, the south must offer technical and industrial training programs to the north."

 

Article provided by The Korea Economic Daily