Tale of two Koreas

The economic performances of North and South Korea over the past decade have differed significantly. This is largely due to the government policies of the two countries, which affect business in conflicting ways. Despite the differences in economic growth, there are a number of similarities between North and South Korea, which are examined in this paper. More importantly, the resource endowments of North Korea, together with the human capital of South Korea, could combine successfully to foster entrepreneurship. This paper discusses the legal, cultural and business environment of North and South Korea and discusses the important possibilities for business development particularly in the small business sector between the two countries.