SEOUL, A sudden reunification of the Korean Peninsula would cause great confusion, which would include large scale migration of North Koreans to the South, an economic report said Tuesday, calling for concrete steps to reduce the gap before integration.

The prediction was made by the Korea Institute for International Economic Policy (KIEP) and Germany's Halle Institute for Economic Research in their latest report titled, "Economic Transition in Unified Germany and Implications for Korea."

"A radical reunification process, such as Germany's case, would cause 7 percent of the population of the North to come South," the findings showed, based on results of a computer simulation.

According to the KIEP data, the North Korean population stood at around 25 million as of 2014.

After reunification, the estimated unemployment rate in North Korea would hover over 30 percent, while the application of South Korea's social safety nets to the North would be impossible due to their systematic differences, according to the report.

To achieve a soft landing, the two Koreas should do more to reduce the gulf in various fields, the report pointed out.

"We propose to build a sound groundwork for stabilizing the interest rates and exchange rates, maintain stable fiscal policies, raise momentum for economic growth and make sure people understand the means required to financially support the North," the paper said.

Source: Yonhap News Agency