Vows to speed up defense reform for stronger deterrence

President Lee Myung-bak on Monday said the door for dialogue with North Korea still remains open, hinting hopes that the frozen inter-Korean relations might abate as members of the six-nation talks prepare for resumption of the nuclear negotiations.

Lee also vowed to speed up defense reform to strengthen deterrence against North Korea’s threats and called on members of the six-nation talks to play a “fair and responsible” role.

“The shelling of Yeonpyeong Island served as an opportunity for us to reflect on our security readiness and overhaul our defense posture,” Lee said in his New Year’s address broadcast live nationwide, pointing to how the terrorist attacks on Sept. 11, 2001 prompted the U.S. to redesign its security strategy.

“We must be equipped with firm deterrence so that the North will not even contemplate another provocation. To this end, I will step up efforts for defense reform.”

He stressed that to persuade the North to abandon its nuclear program, countries concerned must “play a fair and responsible role,” suggesting China should use its influence on Pyongyang as its ally and economic benefactor to ease tensions in the region.

Lee called on the North to give up its nuclear ambitions and military adventurism, seek peace and cooperation through actions, not just rhetoric.

“The door for dialogue is still open,” he said.

“If the North exhibits sincerity, we have both the will and the plan to drastically enhance economic cooperation together with the international community.”

Pyongyang said in its joint newspaper editorial on Jan. 1, in which its policy directions for the new year are presented, that confrontation between the South and North should be defused as early as possible. The North also markedly toned down direct criticism of the Lee administration, calling for dialogue and cooperation.

Lee said national security and economy are the two important pillars of this year’s state affairs.

The nation’s economic goals this year are to achieve a high economic growth rate of over five percent, inflation of under three percent, to create decent jobs and improve the quality of life for middle- and low-income families, he said.

Lee pledged more government support for natural sciences and engineering, especially for the development of original technologies, which he said would raise the nation’s growth potential.

Lee also vowed tailor-made welfare policies for the aging society to provide opportunity at each important turn of life.

“Now is the time to look squarely at the reality that people are living more than 30 years after retirement,” he said.

Lee emphasized that the government will shoulder nursery care expenses for multicultural families, low- and middle-income households, as well as tuition for specialized high school students, while warning against welfare populism.

“The government’s overriding goal in its welfare policy is to give people in need what they need,” he said.

“Indiscriminately dispensing financial benefits with a limited state budget to win the favor of the public is not a solution. As many examples in other nations demonstrate, welfare populism results in budget crises, thus threatening the future of the nation as well as the welfare system itself.”

Lee also highlighted the need to expand Korea’s “global economic territory” through free trade agreements and the country’s drive to be a leader of green growth.

“FTAs are a powerful means for Korea to become a hub nation of international trade,” he said.

“In particular, the FTA with the United States will mark both a symbolic and actual occasion to turn Korea into an international trading hub nation.”

Crediting the treaty for a stronger Korea-U.S. alliance as well as economic advancement, Lee said Seoul will carefully push for free trade negotiations with China and Japan.

Internally, Lee pledged to continue efforts to realize a “fair society.”

This year, the government will push for policy tasks to create a fair society in all areas including trading practices, law enforcement, human rights and taxation as well as labor-management relations, he said.

By Kim So-hyun (sophie@heraldcorp.com)