Then-President Moon Jae-in, left, talks with North Korean leader Kim Jong-un, center, as then-U.S. President Donald Trump looks on after their meeting at the inter-Korean border village of Panmunjom, in this June 30, 2019, file photo. South Korea proposed investing a total of 28.5 trillion won last year to develop North Korea's infrastructure by co-hosting the Olympics jointly with Pyongyang in 2032, documents revealed Tuesday. AP-Yonhap

By Jung Min-ho

Seoul proposed investing billions of dollars to develop North Korea's infrastructure last year by co-hosting the Olympics jointly with Pyongyang in 2032, documents revealed Tuesday. According to a proposal the previous Moon Jae-in administration sent to the International Olympic Committee (IOC) through the Seoul Metropolitan Government on April 1, 2021, it would cost more than 22.6 trillion won ($15.7 billion) to improve infrastructure to the levels necessary to host the sporting event in Pyongyang; for Seoul, it would cost an additional 5.9 trillion won.

Building a high-speed train line between the two cities, an Olympic Village in Pyongyang and power transmission and communication lines, including 5G network infrastructure, are among the major projects proposed in the budget.

The proposal was submitted after North Korea conducted its cruise and short-range ballistic missiles the previous month, defying international sanctions over its weapons development programs.

Rep. Bae Hyun-jin of the ruling People Power Party / Newsis

The ruling People Power Party's Rep. Bae Hyun-jin, who disclosed the documents, suspected that the Moon administration may have tried to use the Olympics as means of bypassing sanctions to support the regime financially.

"That possibility should be investigated," she said in a statement. "What if North Korea says it doesn't have money after deciding to co-host it? That means the [North Korean] cost becomes South Korea's burden … Who was involved in planning it and whether they wasted government resources while doing so need to be looked into."

In addition to the infrastructure expenses, the Seoul Metropolitan Government estimated that another 5.5 trillion won, including 1.7 trillion won for Pyongyang, would be needed to host and manage the Olympics.

It also proposed the idea of attracting investments for cash-strapped North Korea, saying, "If sanctions on North Korea are eased," support from international organizations such as the IOC and global companies would lessen its financial burden significantly.

But the previous administration's dream of another "peace Olympics" with North Korea was dashed three months later when the IOC confirmed Brisbane of Australia as the host city for the 2032 Summer Games. It is unclear whether the North regime ever showed any interest in South Korea's Olympic project.

The Moon administration may have been seeking to revive the momentum for inter-Korean engagement at a time when North Korea was turning hostile toward South Korea again after failing to reach a nuclear deal with the United States.

The Moon administration also expressed hopes for co-hosting the 2030 World Cup with the North and sending a combined team to the 2020 Olympics in Tokyo. But the North shot down these ideas, stepping up its efforts to develop weapons and refusing to talk. It is now believed to have completed preparation for its first nuclear weapons test since 2017.

During his five years in office, Moon focused on improving ties with North Korea in similar ways as his liberal predecessors ― Kim Dae-jung and Roh Moo-hyun ― offering support and promoting more engagement whenever possible. But critics believe their "Sunshine Policy" did not lead to a settlement of peace on the Korean Peninsula or the improvement of life for ordinary North Koreans.

According to the Korea Institute for Defense Analyses, a government-funded defense think tank, North Korea spent as much as $650 million, or 2 percent of its gross domestic product, on 17 rounds of missile tests this year up until early June. Since then, five additional missile tests have been conducted.