Lee vows to urge free market, trade at Group of 20 summit

(ATTN: UPDATES with more details and background from 5th para)
By Yoo Cheong-mo
SEOUL, Nov. 8 (Yonhap) -- South Korean President Lee Myung-bak said Saturday that he will urge leaders of the Group of 20 countries to refrain from protectionist trade policies and stick to market economic principles when they meet in Washington next week.

Lee, meeting with his economic policy advisers, also said he will attempt to engage in "substantial discussions" with the Group of 20 leaders about overcoming the global economic crisis during the two-day summit set to open on Nov. 14, according to presidential spokesman Lee Dong-kwan.

"During the Great Depression, countries worldwide raised tariffs and reinforced
their protectionist trade policy, triggering a further contraction of the global
economy. The ongoing financial crisis should not pave the ground for a return to
protectionist trade and a retreat in the market economy," the spokesman quoted
Lee as saying at the luncheon meeting with members of the National Economic
Advisory Council.
"The South Korean government will continue to take preemptive, decisive and
sufficient measures to prevent the financial crisis from spilling over into the
real economy. At the Group of 20 summit, I will try to engage in substantial
discussions about such realistic issues, instead of sticking to formalities," the
spokesman further quoted Lee as saying.
According to the spokesman, President Lee also explained about a proposal he made
at the Group of 8 summit in July and the summit of the Asia-Europe Meeting in
October, calling for a sweeping overhaul of international financial institutions,
including the International Monetary Fund and the World Bank.
At Saturday's luncheon meeting, the presidential advisers recommended that Lee
propose at the upcoming Washington summit the creation of a so-called "global
leader summit" for their extensive discussions on trade, the environment and
other global issues, on top of the financial crisis, the spokesman said.
The advisers consented to Lee's bid to safeguard the market economy and urged him
to seek to sign a new currency swap deal with the European Union and expand the
ceiling on the nation's currency swaps with the U.S., Japan and China, said the
spokesman.
U.S. President George W. Bush, the host the Group of 20 summit, will also bring
together leaders of Argentina, Australia, Brazil, Canada, China, France, Germany,
India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa,
Turkey, Britain and the European Union.
In their first telephone conversation on Friday, President Lee and U.S.
President-elect Barack Obama agreed to closely cooperate in addressing the global
financial crisis. They also agreed to meet as soon as possible, raising the
possibility that they may get together on the sidelines of the Group of 20
summit.
Obama's attendance at the Washington summit has yet to be confirmed.
Lee is scheduled to meet with a group of Obama's foreign and security policy
advisers under the auspices of the Brookings Institution shortly after his
arrival in Washington D.C. on Nov. 14.
ycm@yna.co.kr
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