South Korea's 2015 budget plan focuses on reunification

Want China Times, Xinhua and Staff Reporter 2014-04-16

Park Geun- hye speaks at a press conference in Berlin when visiting
Germany, March 26. (Photo/Xinhua)

South Korea's 2015 budget plan will focus on laying the groundwork for reunification with the North, reflecting President Park Geun-hye's unwavering commitment to seeking the so-called "reunification bonanza" despite rising tensions on the Korean peninsula.

Seoul picked the groundwork-laying as one of the five major investment focuses for the 2015 budget plan, according to the finance ministry. The guidelines on the 2015 fiscal spending, which were approved at the cabinet meeting and ratified by President Park, will act as the principle under which ministries apply for next year's budgets.

Under the guideline, government funds will be spent next year on establishing foundations for a reunited Korea, including a humanitarian aid program, an expansion of exchanges and long-term fiscal preparations for the reunification.

"The groundwork-laying for reunification was included in the 2014 budget plan for the first time. There will be no cut in next year's fiscal spending in the unification area," a finance ministry official said.

The budget plans came amid mounting tensions on the Korean Peninsula. North Korea threatened a "new form" of nuclear test in late March, after firing a volley of missiles and artillery shells, including the medium-range Rodong missiles which were seen by some as a signal of a fourth nuclear test following those in 2006, 2009 and 2013.

North Korea's show of force came as South Korea and the United States launched their annual war games. Pyongyang repeatedly denounced the joint military exercises as a rehearsal for the northward invasion.

Despite the escalation of tensions, the South Korean government is expected to continue its preparations for future reunification, which was described by President Park as a bonanza in her first New Year's speech in early January.

Park made a three-point proposal to North Korea in Dresden, Germany in late March, including support for babies and pregnant women through the United Nations, infrastructure development, natural resources exploration and broader inter-Korean exchanges on history, culture and sports.

South Korea will lend fiscal support to strengthen its military capability in response to North Korea's possible missile and nuclear threats.

Government money will continue to be spent next year on establishing the "kill chain" system and adopting a South Korean anti-missile defense system. The kill chain system refers to a strategy which preemptively detects and intercepts missile and nuclear threats from North Korea.

Fiscal funds will also be allocated to building up defense research and development infrastructure, developing core defense technology and enhancing the competitiveness of the defense industry.