(LEAD) Seoul, Jakarta agree to join efforts in building economic bloc in Asia

(ATTN: UPDATES remarks from the leaders, more details)
By Byun Duk-kun
JEJU ISLAND, South Korea, June 1 (Yonhap) -- South Korean President Lee Myung-bak
and his Indonesian counterpart Susilo Bambang Yudhoyono agreed Monday to join
efforts to establish a network of economic cooperation in the region that will
also help fight global issues such as climate change.

The agreement came one day after the South Korean head of state called for an
Asian economic bloc that he said will prepare the region to take the center stage
of the world economy once the ongoing global economic crisis is over.
"The two leaders welcomed the agreement reached last month on the Chiang Mai
Initiative and development of an Asian bond market, and agreed to continue
working together as the mainstay of Asia in addressing regional and global
issues," South Korea's presidential office said in a press release.
Launched shortly after the 1997 Asian financial crisis, the Chiang Mai Initiative
seeks to establish an Asian monetary fund that will help fight short-term
liquidity problems in the region. South Korea and the 10-member Association of
Southeast Asian Nations (ASEAN) agreed in April to establish a US$120-billion
fund along with Japan and China.
Lee and Yudhoyono also agreed to strengthen their countries' bilateral ties,
noting their close economic cooperation will lead to the joint development of the
countries, the press release said.
"President Lee requested the Indonesian government's support for South Korean
businesses that are investing in the (southeast Asian) country's IT,
construction, forestation and defense industries," it said.
The Indonesian president promised full support for South Korean firms in his
country.
Lee thanked his Indonesian counterpart for visiting South Korea ahead of
Indonesian presidential elections next month, in which Yudhoyono is seeking
re-election.
"I hope your visit to Jeju Island will be a chance to recharge your energy as you
came ahead of the July election," Lee told the Indonesian leader.
Yudhoyono is later scheduled to attend a special Korea-ASEAN summit,
commemorating the 20th anniversary of establishing a dialogue partnership between
the sides.
The commemorative summit, also involving leaders of Brunei, Cambodia, Laos,
Malaysia, Myanmar, Singapore, Thailand, the Philippines and Vietnam, will begin
later Monday for a two-day run.
bdk@yna.co.kr
(END)