My main objective in this article is to grope the direction of economic cooperation between South and North Korea toward the unified Korea. In a so-called tripolar system - Western europe (EU), North America(NAFTA), and East Asia - the rapid economic growth of East Asia will make Asia the center of the world economic power early in the next century. The ease of tension between South essential for the political stability of east Asia. It is also responsible for the stable economic growth of this region. The united Korea - 80 million people and $350 billion of trade by year 2000 - would be an authentic independent negotiating unit with other major economic blocs. The economic convergence of the two Koreas could be achieved via economic cooperation rather than one-sided economic aid. The business-led cooperation is more efficient than government-led economic cooperation to fully exploit relative comparative advantages of both Koreas. This can be achieved especially in the light manufacturing industries with know-how, accumulated technology, efficient production method, and world market network of south Korea. In discussing prospects for unification, some observers argue that a "middle model" is likely to emerge from a merger f the southern market economy with the centrally-planned northern system. I emphatically dispute this notion. Experience elsewhere strongly suggests that a compromise between freedom and centralized control is not a viable way to operate a modern economy. The simple truth is that the market system is the only way to run an economy successfully in the modern world.