ABSTRACT
Both sides of the Korean peninsula have experienced internal and external economic changes during the past two years. The historical summit in June 2000 between Kim Dae-Jung, the South Korean president, and Kim Jong-Il, chairman of the National Defense Commission of North Korea, has been regarded as a cornerstone of inter-Korean reconciliation and cooperation. However, despite the initial expectation of full-blossomed economic cooperation between the two sides, no such dramatic change has occurred since the summit. There are several reasons for this, and the weak performance of the South Korean economy is surely one of them.
