Lee proposes establishing regular dialogue channel with N. Korea

(2nd LD)
(ATTN: UPDATES throughout with official translation of Lee's speech, other details;
CHANGES headline)
By Lee Chi-dong

SEOUL, Jan. 4 (Yonhap) -- President Lee Myung-bak proposed Monday that the two
Koreas establish a liaison office in each other's capital for "standing dialogue"
and a new turning point in their tumultuous relations.
"The government will endeavor to improve relations with North Korea," he said in
a televised New Year's address.
Lee reiterated his call for the communist neighbor to rejoin the six-nation
nuclear talks as early as possible, saying "This will ensure the denuclearization
of the Korean Peninsula and open up real cooperation between the two Koreas."
"For this, there is a need to establish a body that will allow inter-Korean
dialogue to take place at all times. I hope that North Korea will engage in
genuine dialogue, opening up the road to cooperation," he added, apparently
reviving his proposal made about two years ago.
During a U.S. visit in April 2008, two months after his inauguration, Lee
suggested in an interview with the Washington Post that the two Koreas set up a
high-level diplomatic channel and create the first liaison offices in each
other's capital.
North Korea, however, rejected Lee's proposal nine days later through a
commentary run in the Rodong Sinmun, an organ of the ruling Workers' Party.
In the New Year's address, Lee also unveiled a push for talks with the North
aimed at bringing the remains of South Korean soldiers who died during the
1950-53 Korean War and who are buried in North Korea.
Expectations are running high over another inter-Korean summit sometime this year
amid signs of an impending resumption of the six-way negotiations following the
restart of bilateral talks between the U.S. and North Korea. But the two sides
have yet to reach consensus on the venue and agenda items including whether the
nuclear issue will be discussed.
On the economic front, Lee, formerly a business CEO, said his administration will
intensify efforts to create jobs and revitalize the economy.
"My administration and I will do our utmost to create a positive cycle of
economic recovery leading to creation of new jobs. Every month, I will convene a
strategic meeting for job creation aimed at identifying and examining policies,"
he said.
He said the government hopes to put an end to the emergency economic posture
within the first half of this year and make low-income people feel the effects of
economic recovery in the latter half.
South Korea, a leading Asian economy, is regaining confidence as it emerges from
the worldwide financial crisis ahead of many other nations. The country's trade
surplus hit a record high of US$41 billion in 2009 thanks to a drastic cut in
imports. After more than a year of expansionary fiscal policy, South Korean
officials are reviewing the appropriate time to begin a so-called "exit
strategy."
Among social issues, in particular, Lee said he will accelerate political and
education reform drive.
"We will strive to accomplish educational reforms. Educational competitiveness is
the nation's competitiveness," he said, citing the need to drastically cut
private education spending and modify the college entrance exam system.
On diplomacy, the South Korean leader said he will seek closer relations with
China and Japan as well as accelerate his "New Asia diplomacy" to improve ties
with other Asian neighbors.
"The government will engage in all-directional diplomacy with every country in
the six continents and five oceans while trying to bring about a change for
better inter-Korea relations," he said. "Diplomacy toward African nations will be
given special emphasis as well."
Lee's approval rating has rebounded to close to 50 percent, apparently boosted by
his pragmatism-oriented policy and diplomatic achievements, recent opinion polls
showed.
Meanwhile, Lee presided over a Cabinet meeting earlier in the day but he
cancelled a routine New Year's meeting with a group of about 300 leading figures
including political and business leaders, due to heavy snow.
Lee's spokesman Park Sun-kyoo said the president thought that it was more
important to handle the aftermath of heavy snow including traffic congestion and
cancellation of flights rather than holding such a ceremonial event.
lcd@yna.co.kr