South Korean President Discusses U.S.-South Korea Relations

President Lee Myung-bak Takes Questions From Washington Post Editors and Reporters

Note: President Lee is speaking through an interpreter

THE POST: Americans worry about negotiations between our countries and North Korea and six-party talks, and I am sure this is something that you've been talking about you will talk about, Mr. President.

Are you? American politicians have been critical of North Korea, said they have broken their word and, uh, I wonder what your understanding is of these thoughts? I wonder what you hope for North Korea's Diplomatic policy going forward?

LEE: As for the inter-Korean relations and negotiation with regards to North Korea issue, it is in fact true that the six-party talks has been a bit slow lately in the progress. However, I know there were negotiations taken part between North Korea and the United States, led by Ambassador Christopher Hill in Singapore recently, and I know there are negotiations going on between U.S. and North Korea with regards to North Korean plutonium activities as well.

I do consider all of this progress, a step forward, and I do consider this a step so that we can go to the next level. Of course, the next level, as you know, involves verification of North Korean nuclear activities.

The verification stage will take some time as well, of course. It is going to be a bit difficult as well. Nonetheless, I do consider that we are making some progress in the negotiations.

Gentleman, of course, the North Korean nuclear issue never really works as you plan. A lot of patience, a tremendous amount of patience and no matter how long it takes we should exercise a lot of patience so we can peaceful and completely resolve this issue.

And gentleman another important issue is, while it takes time to resolve the North Korean nuclear issue... Another pressing issue is how are we going to manage the inter-Korean relationship.

THE POST: Are you bringing any new proposals between your country and the North Koreans to discuss with the President here? Are you ready to talk about the step your country is ready to take with inter-Korean relations?

LEE: Yes ... it's been 50 days since my administration has began working, since I was inaugurated. However, I think North Korea and South Korea; there is a difference from the relationship compared with the past.

North Koreans had been dealing with an administration in Korea for the last 10 years. Now they are dealing with a new government, my administration, which is quite different from the one previous and with my predecessors.

So, I think right now, we are going through a period of adjustment between the two Koreas, and I think during this period of adjustment, there, perhaps the dialogues between the two Koreas haven't been working as well or as often, because, as you know Korea, North Korea has been issuing belligerent and bellicose remarks towards my country and myself.

But, during this period, I think both South and North Korea must change their ways. It is not sufficient for North Korea to resort to their old ways... and when I go back, and this is the first time I am publicly making this recommendation and suggestion, but I believe between the two Koreas, we need to always have dialogue going on to open a permanent dialogue channel between the two Koreas.

In the past, we had dialogue between the two Koreas when there was a need and then if there wasn't a need, the dialogue would close. I don't think that is helpful in the situation.

So, when I go back to my country, I will propose setting up a permanent liaison office in Seoul and Pyongyang, so we can have these permanent dialogue channels open. This, the purpose is while we try to solve the North Korean nuclear issue, at the same time we could also open up dialogue channels with North Korea and to discuss and manage inter-Korea relationship.

THE POST: I suppose one purpose of the insults from North Korea about you is they hope the South Korean people will become nervous and you will feel pressured to soften your approach.

Do you think this is likely to succeed? What is the reaction of South Korea to these insults and bellicose statements? And what is likely to bring any change in their willingness to deal with you on new basis.

LEE: ...as you know we had recently the general elections, which happened on April 9th in Korea, that was the National Assembly Elections.

I think that the recent bellicose statements released by the North Koreans was not really a challenge per se, but rather it was an attempt by North Koreans try to gauge the reactions of the new administration of South Korea and myself. They were trying to see how we were going to react to their bellicose and belligerent statements, and also second reason for those statements was probably their attempt to influence in some way, the result of the recent general election in South Korea.

However, one important point is the South Korean public, they're very used to North Korean tactics of issuing such statements during critical moments in order to influence the outcome in South Korea. They would resort to some sort of military tensions by releasing such statements. But, however, even during the presidential elections, they said that if I was elected, then we would, Seoul would become embroiled in military conflict and so forth.

These are used to it, especially the South Korean public is used to it. It had no effect on the outcome of the general elections, as you can see. And the Korean people understand the North Korean tactics.

To answer your question, my administration has not over reacted to those bellicose statements. We have been calm and collected. And, it is important that North Korean Administration realizes this. It is a different administration they are facing.

THE POST: I am interested by your proposal to exchange liaison offices. If your proposal is accepted, what level of official of your government would you be sending? This is obviously very important to people in your country. Would you be sending a top level person? What kind of person would your representative be?

LEE: ...First of all, this is matter that will be discussed to be more detail between the two relative parties, but I do believe this individual, the liaison office should be headed by an individual who has access to both the top leaders of both the South and North Korea.

THE POST: Just to clarify something you said before, regarding the negotiations with North Korea. Were you saying the solution that Chris Hill has come up with, the idea where North Korea says it acknowledges the U.S. concerns and evidence about uranium and the Syria connection, that that is an acceptable way to go forward? That that meets your approval?

LEE: ...As for your question about North Korea's cooperation with Syria or North Korea's activities in the uranium enrichment program, we do not know the final results or the outcome of it. I believe that we should wait a little bit before we know for sure.

However, perhaps we can assume that North Korea did in an indirect way admit to being involved in these two activities, and if so, considering the characteristics North Korea and their regime then perhaps we can consider this as an acceptance or an admission that they were involved in these activities, and then this will allow us to move on to the next level so that we can resolve the North Korean nuclear issue. This might perhaps be one way of moving forward.

And also gentleman, another very important point is that North Korea agree not to get involved further in any proliferation activities.

THE POST: Mr. President you said that you would link South Korea's investment and aid to the North with progress on the nuclear talks. At the same time, officials from the World Food Program are saying that North Korea may be facing yet another major, major deficit in food this year. Much greater than in recent years. How do you think that might influence relations between North and South Korea, and how do you balance your desire to link progress in the talks with the possibility that North Korea might be facing a very serious food shortage again?

LEE: My principle when it comes to assisting North Korea is as follows. Of course I said before that real, active and economic cooperation with North Korea can only begin depending upon the progress that we see in denuclearization talks. These two are of course very much related with each other. However, as you pointed out, we are seeing some massive food shortages occurring in North Korea. We saw many lives being lost because of the shortage of food. We'll see much more, many more lives being lost in North Korea because of the shortage of food. When it comes to that point I believe this is a humanitarian issue and that we must approach this issue from that perspective. And when it comes to this, my consistent position has been that economic cooperation with North Korean will be treated separately from such humanitarian assistance and issues. So, as you said, a persistent food shortage is a humanitarian crisis in North Korea, so this should be dealt with from a humanitarian perspective.

THE POST: I don't believe North Korea has asked for any rice or fertilizer this year. Are you waiting for such a request? And what would be your response?

LEE: Yes, to answer your question, I think that North Korea did not have an opportunity yet to actually make a proposal, if that is what they intended to do. As I said before, the presidential election was December nineteen. Two months later or so, we had the inauguration of myself and the administration. And then we had the subsequent general elections in April, and in the meantime, North Korea was releasing these bellicose, belligerent statements in order to somehow influence the outcome and so forth. So, these events are related to each other, back-to-back. So I think this did not give the North Koreans time to ask us for fertilizer or food is that is what they actually wanted to do. So regardless of who request first, or whether we assist or not, I think the situation becomes a crisis in North Korea. And if the need arises, we will have to find an opportunity to discuss the issue of assistance to North Korea.

One concern that I have, a realistic concern, is that as you know, the international price of food products, agricultural products, basic commodities, fertilizers, the prices has gone up exponentially lately. So, it's even difficult even if we wanted to buy these food for them, a difficult situation lately.

THE POST: You live so much closer to North Korea than we do. Americans think of North Korea through the prism of the Korean War and the nuclear issue, humanitarian crisis. Some politicians in this country are saying that the Kim Jong Il regime is broken, already the promises they made in the nuclear talks. Do you agree that they have not lived up to their word? And what do you think, you've mentioned that your policy toward North Korea will be different, is different than that of your predecessors. What do you think are the goals of the North Korean regime, other than survival?

.

LEE: ...First of all, from the U.S. and from the South Korean perspective, when we look at North Korea, yes we do consider that they did not abide by their promises that they made. However, at the same time, we could also say from the North Korean perspective, they might think that we didn't abide by our part of the promise. So there is some sort of difference there, but nonetheless it is important that is that much more complicated and difficult when dealing with a communist and totalitarian regime. It just becomes very difficult.

And also gentlemen, as you will understand, South and North Korea, we have a very special relationship. This relationship is very different from other relationships between two states, because, as you know, we are, in fact, one people. And one day, we will become reunited. However, it's also important that we maintain peace and stability on the Korean Peninsula because only by doing so we can actually go through developing, continue our economic development in South Korea...As for the difference in our North Korean policy compared to my predecessors, or previous administrations in South Korea, we could say this and that is previous administrations in South Korea tended to emphasize more the relationship between the two Koreas rather than the North Korean denuclearization six-party talks. On the contrary, me, myself and my administration would like to emphasize, and emphasize the fact that denuclearization through the six-party talks and our cooperation through and within the six-party talks is more important and at the same time managing the inter-Korean relationship is also important in order to achieve this goal.

And another big difference with the previous administration, is that my administration intends to work very closely with the U.S. administration so that we can work together step-by-step to achieve denuclearization of the peninsula¿I believe, I believe it's important that we have a close relationship between U.S. South Korea, between South Korea and Japan, and South Korea and China, and among the three countries, so that we can continue to convince North Korea that is in their critical national interest to completely forgo their nuclear capabilities and ambitions, because by doing so, the North Koreans must realize that it will not only help their economy, but also bring up, improve the quality of life of people, so that allow them to live with dignity, and also to maintain their political regime.

THE POST: You've talked about having a different relationship with the United States than your predecessor. In addition to working more closely with the United States, as you said, step-by-step on North Korea. Are there other aspects or the U.S.- North Korean relationship that you would like to change, or improve upon?

Interpreter: U.S. - South Korea.

THE POST: Oh, yes, I mean U.S. - South Korea.

LEE: Yes, gentlemen, in the past, the Republic of Korea, it is true, that because of our situation and circumstances, our foreign policy, our policy has been very much limited to Korean peninsula, between the two Koreas, or to our national security. However, I intend to develop our relationship with the United States so that we can achieve a strategic alliance. And, allow me explain what that means. As you know Korean economy is now the world's twelfth or thirteenth largest economy in the world. I intend to contribute and take part in internal efforts and talk about global concerns commensurate, commensurate with our economic stature. And also I will work closely with the United States so that we can tackle global concerns such as eradicating terrorism, weapons of mass destruction, drug problems, the problem of poverty, fighting poverty. Global warming is another very important issue. We will work closely with the U.S. administration to tackle these global concerns, that concerns the international community, and through my meetings with the U.S. president, of course we will work to strengthen the alliance to make this future-oriented, and that is what I mean in a future-oriented alliance.

THE POST: I believe you said yesterday that the U.S.-Korea trade agreement would benefit American business as much or more as South Korean. And yet our two Democratic candidates both oppose it. Unlike Prime Minister Brown, you've chosen not to meet with them on this trip. I'm curious, how is that opposition perceived in South Korea and, and, what impact would that have on relations if that agreement was not approved.

LEE: Yes, thank you for the question. As for the KORUS FTA, I think first of all there are some misunderstandings here in the United States and among the American public about the significance of the KORUS FTA. First of all, some many people I know believe if the KORUS FTA were ratified that this will somehow affect jobs here in the United States or somehow take away American jobs. That is not true. In reality, and if you look at the global economy at the moment, we all know the U.S. economy, as well as the European economy, is going through a period of difficulty and some downturn in those economies. But, despite that here in East Asia -- and especially South Korea and the countries around there -- we are still growing and posting growth in our economic prospects of the future.

So that is one reason --important reason -- why the ratification of the KORUS FTA will help the American economy and American consumers because KORUS FTA will allow American companies to use Korea as a strategic bridgehead tapping into the East Asian markets, which will help the American economy and also create jobs.

And also, the KORUS FTA will allow advanced U.S. and American financial services or other service sectors to come into the growing emerging Korean market, which will help the U.S. economy. And so that is why I believe the KORUS FTA will have more benefits for the American consumers, rather than the Koreans as well.

But also just one more important point gentlemen is that the KORUS FTA is not just about economic matters. The KORUS FTA will be the culmination and the beginning of a new relationship ¿ a comprehensive partnership between the two countries ¿ between Korea and the United States.

You mentioned about the Democratic candidates publicly opposing the KORUS FTA. I'm aware of that and I myself who recently went through presidential elections understand that during a presidential election you really are given no choice but take on positions that will benefit your prospects for becoming elected. I'm sure that once these candidates are elected to office that he or she will look into the facts of the KORUS FTA, make the decision which will be in the interest of the American consumers and the American economy.

I must tell you that I face many opposition in Korea as well. If I tell the Korean public I want to pursue the ratification of the KORUS FTA, there are many politicians who oppose it. There are many farmers, agricultural workers, many people working in the service sector who are opposed to the ratification of the KORUS FTA in Korea as well.

But I am firm conviction that the KORUS FTA will benefit both the U.S. and Korean economies and that is why I am going to pursue it. As for how is it going to affect the Korean-U.S. relationship if it is not ratified? To be honest, I'm not thinking about that because I believe that it is going to pass. I believe that it must be ratified. And so, at this point to presume how it is going to affect if it is not ratified, I think it's not very useful at the moment to think about that scenario.

THE POST: You have had a very unusual life. You're not only head of state, but you've run an enormous company and know the U.S. market very well. Are you concerned about our economies having very tough times? Are you concerned about the affects of the credit crisis on your economy as well?

THE POST: I gather there's no Korean word for subprime mortgage.

[LAUGHTER].

LEE: Yes, the global economy is undergoing a period of difficulties and of course we all know that began and was affected in large part from the subprime mortgage issue that began in America, in the United States and of course this issue is affecting the global economy as we know it.

However, fortunately for the Korean economy we have been relatively less impacted by the United States subprime mortgage issue. As you know, the Korean economy is in large part they're a share within trading and dealing with the East Asian economy the share has been going up recently and so I think that is one reason why we have been less impacted by the subprime mortgage issue.

Secondly, as for the U.S. economy and its future, of course we all agree that the U.S. economy very much has an effect on the global economy, so for that I truly wish for the speedy recovery and the revival of the U.S. economy.

That was one reason why, when I was visiting the New York Stock Exchange yesterday morning, and I rang the opening bell there and I was telling myself and hoping very much that my visit to the U.S. would help. And actually, it did because after I did the opening bell I think it was 250 points (LAUGHTER).

THE POST: Ring it again. [LAUGHTER]

THE POST: I was curious about China. China is increasing its influence and presence in North Korea and so much so that some that actually speculate that if North Korea were to collapse that China would, would actually move in and take control there. Is that a concern of yours?

LEE: Yes, thank you sir. First of all, I do not think that the North Korean regime will collapse suddenly anytime soon. Nevertheless, I do realize that some people recently have been saying that the possible scenario that you mention. When it comes to territorial integrity of the United States, I know that the Chinese government are extremely cautious about those issues. In the case of a scenario where North Korea collapses suddenly, I believe that the North Korean -- the Chinese government -- would exercise due caution in say, I don't think they would occupy North Korean land in the case of South Korean collapse. I believe that possibility is very unlikely. And also I believe one reason for that is that Chinese government realized that this --- that that will have adverse effects on their relationship with other neighboring states that they have borders with.

So from that perspective, I believe that is a very unlikely scenario but, nevertheless, we will -- my government -- will continue to strengthen its relationship with China. And also at the same time, that it ¿ that it becomes that much more important for us to strengthen our relationship with the United States because in case of this scenario or any other unlikely scenario or sudden scenario, cooperation of Korea and the United States must be always there to help us.

THE POST: As you know, President Bush has been very interested in the situation in Burma and Myanmar and recently there have been reports that North Korea has been selling weapons to Myanmar. I wonder if you have any information about that and if the two of you are likely to discuss what do about the situation there at all?

LEE: Yes, thank you. As for whether it's on the list-agenda with my talk with President Bush, it is not. However, I'm sure it could come up during the course of the conversation between myself and President Bush. As for the reports of North Korea selling weapons to the Myanmar government, we've had some unconfirmed reports in the past as well that North Korea was involved in export activities and military weapons to Myanmar but of course they're unconfirmed and unsubstantiated.

Our -- my government's -- position regarding Myanmar is that yes, from the perspective of promoting human rights of protecting the dignity of the people of Myanmar and for laying the foundation for democracy. We approach it from that perspective. So, we are very much extremely --and Madam Aung Sung Suu Kyi, she is an important topic and an interest for the people in the Korean government. So, we approach Myanmar issue from that perspective. And if the opportunity comes up, we will discuss it with President Bush.

THE POST: I asked your predecessor in his first year, is it possible there will be any steps towards the reunification of Korea during your presidency?

LEE: ... If I say that I expect progress, than the North Koreans will probably misunderstand me, so I won't use that word. Secondly -- but however -- reunification for the two Koreas is a must, but it will take some time. But nobody knows. I don't know. And thirdly, we will always be prepared for this eventual conclusion. And it is because of that reason that I intend to develop our relationship and strengthen our relationship with our allies and neighbors.

THE POST: Your predecessor just said "no," [LAUGHTER] so that's a change. Thank you so much.