(LEAD) Leaders of S. Korea, Peru agree to step up efforts for FTA

(ATTN: UPDATES with remarks from Lee and Garcia in paras 3-5, minor changes)
By Byun Duk-kun
SEOUL, Nov. 12 (Yonhap) -- South Korean President Lee Myung-bak and his Peruvian
counterpart Alan Garcia Perez agreed Thursday to improve their countries'
bilateral ties and to step up efforts to sign a free trade agreement (FTA) at an
early date.

"The leaders of the two countries agreed on the importance of concluding
negotiations for an FTA at an early date to help contribute to the prosperity and
welfare of their countries and their peoples based on their complementary
economies," they said in a joint statement issued at the end of their bilateral
summit here.
President Lee said the two countries' cooperation will create new opportunities
and help Peru become one of the fastest growing economies in South America.
"South Korea is fully ready to cooperate with Peru in all areas," Lee told Garcia
at the start of their talks.
Garcia, too, noted friendship and cooperation between the two countries will help
provide new sources of growth for both nations.
According to the joint statement, the leaders said the relationship between their
countries has steadily improved since they established diplomatic ties in 1963
and reaffirmed their commitment to further expand their cooperation in dealing
with bilateral and international issues.
"In that context, the two leaders recognized the importance of further
strengthening the 'comprehensive cooperative relationship' between their
countries that was established in a summit held in Peru on Nov. 21, 2008," it
said.
The two leaders emphasized the need to improve their cooperation in trade,
investment, resources and energy, including nuclear energy, as well as in the
defense industry and the cultural sector.
"President Garcia especially expressed gratitude for South Korea's investment in
Peru and stated his willingness to work with South Korean firms to encourage more
investment," the joint statement said.
The two leaders also reaffirmed their support for a peaceful resolution of the
North Korean nuclear issue while urging the communist nation's immediate return
to six-nation nuclear negotiations that include South Korea, the U.S., Japan,
China and Russia, according to the statement.
President Garcia expressed support for Lee's "grand bargain" proposal on
denuclearizing the North, an initiative aimed at completely ridding Pyongyang of
all its key nuclear programs in one single step instead of in phases.
Recognizing Garcia's efforts to help improve the Korea-Peru relations, Lee
presented the Peruvian leader with a Grand Order of Mugunghwa, the highest medal
given to foreign heads of state, in a ceremony held shortly after their summit,
according to Lee's presidential office, Cheong Wa Dae.
Both Lee and Garcia will leave for Singapore on Friday for the annual summit of
the Asia-Pacific Economic Cooperation that will also be attended by the leaders
of 19 other economies around the Pacific rim.
bdk@yna.co.kr
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