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SPEAKER REPORTS

U.S.–Korea Relations: Stabilizing Northeast Asia

by Dongman Han, Minister-Counselor for Economic Affairs, Embassy of the Republic of Korea, Washington, D.C.

Mr. Han presented the following address at ACWA's February 26, 2009, Formal Evening Program.

Introduction

Thank you for your kind introduction. It is indeed a great pleasure to speak in front of the esteemed members of the Akron Council on World Affairs.

And I would like to express my appreciation to Ms. Jane Walker Snider, Executive Director and the staff of the Council for arranging this meaningful occasion.

I would also like to thank all of the distinguished guests who are here today.

I believe that your presence represents a reflection of your strong interest and support for the further enhancement of bilateral relations between Korea and the U.S.

Prior to tonight’s dinner, I enjoyed a discussion with several groups of high school students who possessed great vision, integrity and passion. I believe that the Akron Council’s Global Scholars Program has contributed to providing an excellent opportunity for students to identify significant global issues and enhance their knowledge and leadership.

It was my pleasure to meet such eager and well prepared students. I was particularly impressed by their genuine interest and extensive knowledge about Korea’s current issues. There is no doubt in my mind that these students will be remarkable leaders in the future not only in the United States but also in the global community.

I am very happy to share my thoughts with you tonight on the “U.S.-Korea Relations: stabilizing Northeast Asia”. I would like to offer my assessment on our bilateral relationship, and more broadly, on the key role of Korea in securing peace and stability in the Northeast Asian region.

There is an old saying that “Geography is destiny.” In the 21st century, this phenomenon is to some extent diminishing, as the world becomes more globalized and interconnected. But for Korea, geography has always been a determining factor.

Because of Korea’s strategic location in the center of Northeast Asia-surrounded by great powers such as China, Russia and Japan- Korea has long been the subject of active regional contention.

The U.S. victory over Japan in 1945 won back Korea its freedom from colonialism, and Korea established its modern government in 1948. But it was only a short time until it soon fell subject again to superpower rivalry.

Korea and the United States have fought against communists to defend freedom and democracy. Since the Korean War in 1950, we, Koreans have fought against poverty to acquire economic freedom. We have fought against oppression and dictatorship to acquire political freedom. We have fought against discrimination to acquire social freedom and we have also fought against prejudice to acquire cultural freedom.

Freedom is like the air we breathe. We know that the Korean people would not breathe the air of freedom without the brave and heroic sacrifice of American soldiers during the Korean War. Taking advantage of this opportunity, I would like to express my sincere and deep appreciation for the sacrifice of the Korean War Veterans.

In spite of their sacrifice, the Korean Peninsula remains as only legacy of the Cold War era-with North Korea as a threat to the region and the world with its ambition for nuclear weapons.

Without successfully resolving North Korea’s nuclear ambition, peace on the Peninsula and in East Asia is not secure. So before I touch on our bilateral relations, let me talk about the North Korean nuclear issue as well as inter-Korean relations and how that is proceeding.

North Korea Nuclear Issue

Obviously, the nuclear issue is of the highest importance, and remains a fundamental problem. We must continue to work together toward the denuclearization of North Korea.

I think everyone here understands that if North Korea becomes a nuclear power, South Korea faces the greatest threat. Also a nuclear North Korea can allow further proliferation in the region and beyond, so resolving this issue is of the highest priority.

North Korea has already agreed to dismantle its nuclear facilities in the 2007 agreement. But, North Korea did not fulfill its commitment for denuclearization. We witness no significant progress has been made, as North Korea has always taken its brinkmanship when North Korean need more concessions from their counterparts.

If North Korea abandons its nuclear program, the future can be bright. Relations with other nations can improve, a Northeast Asia peace and security mechanism can be established, and most importantly, the people of North Korea can begin to emerge from poverty, oppression, discrimination and despair and start to see daylight, hope and breath air of freedom

Secretary of State, Hilary Clinton pointed out in the Asia Society speech on February 13th that if North Korea is genuinely prepared to completely and verifiably eliminate nuclear weapons program, the Obama administration would be willing to normalize bilateral relations, replace the longstanding armistice agreements with a permanent peace treaty, and assist in meeting the energy and economic needs of the North Korean people.

During her recent visit to South Korea on February 20th, she reconfirmed that the United States and Korea maintain our joint resolve to work together and through the Six Party Talks to bring about the complete and verifiable denuclearization of the Korean Peninsula.

During the summit between President Obama and Japanese Prime Minister Aso on February 24th, the two leaders pledged to work closely through the Six Party process to verifiably eliminate North Korea’s nuclear program and to deal with the problem of North Korea’s missiles.

The Six Party Talks with the participation of two Koreas, the U.S., China, Japan and Russia remains the principal framework for North Korea moving forward.

However, the Six Party Talks are at a stalemate over how to verify North Korea’s declaration of its nuclear program, because the North has refused to allow international inspectors to take samples from its main nuclear site in Youngbyon.

We need to draw out a comprehensive roadmap encompassing measures for North Korea to abandon all nuclear weapons and existing nuclear programs. 

I have great hopes that the Six Party Talks process and the strengthened efforts of Obama administration will facilitate progress in the denuclearization of North Korea in the future.

Inter-Korean relations

Let me briefly touch upon the inter-Korean relations.

Our policy toward North Korea is based on a policy of engagement, reconciliation, and cooperation. And we have been trying to promote genuine dialogue with the North to realize "mutual benefit and common prosperity."

The policy on inter-Korean relations and that on the North Korean nuclear issue should not be decoupled in the pursuit of their objectives.

We will exert our efforts so that the Six-Party Talks process and inter-Korean relations can reinforce one another in a positive manner.

However, North Korea renewed hostility toward South Korea, adding to tensions by announcing that it was preparing to launch a satellite on one of its rocket, although analysts have said the launch would actually be the test-firing of a Taepodong-2, which is designed to strike U.S. territory. 

Secretary Clinton urged North Korea to stop provocative and unhelpful acts of escalating tension. She also emphasized that North Korea is not going to get a different relationship with the United States while insulting and refusing dialogue with South Korea.

North Korea has cut off all channels of dialogue between the authorities of both sides. But North Korea needs to realize sooner than later that our policy lines are to their own benefit and that our stance will not falter.

We believe that inter-Korean relations are undergoing a period of adjustments.

The old pattern where inter-Korean relations were swayed around by North Korea's whim should be changed. It is now high time for us to forge a more 'normalized' and constructive relations with the North through more genuine and sincere dialogue.

Based upon such a stance, we will continue to exercise patience and call upon the North to become more forthcoming. 

Korea-U.S. relations

Korea and the United States forged a military alliance in the midst of the Korean War to fight against communists. Since then, Korean troops have fought with the United States in every single major international conflict such as Vietnam, Iraq and Afghanistan.

The bilateral relationship has evolved over the years into a strong mature partnership in the political, military, economic and cultural areas.

Political ties

First, on the political front, both Korea and the U.S. share common values such as freedom, democracy and justice. Given our shared ideology, Korea and the U.S. have begun regular strategic dialogues on bilateral, regional and global affairs. In this context, our two countries have been continuing to work together on such vital global concerns as terrorism, WMD proliferation, human rights, poverty, and the environment.

Military alliance

The second area we are working to modernize is our military alliance. I should note that Korea’s alliance with the U.S. is a cornerstone for peace and stability on the Korean Peninsula and in Northeast Asia. Since the Korean War, peace on the Korean peninsula has been ensured by the U.S.-Korea defense alliance.

Over the past half-century, the geopolitical landscape and the security environment surrounding our alliance has continued to evolve. In order to address the new security environment and needs of the 21st century, the United States and Korea agreed to work together to further develop our alliance into a future-oriented strategic alliance based on our common values of democracy and the market economy.

Korea-U.S. alliance has been tested and strengthened, as we continue to make it more effective and efficient. For example, last October, Korea's Foreign Military Sales (FMS) status was elevated to the equivalent of NATO+3 (Australia, Japan, New Zealand) countries. This change in status not only elevated the Korea-U.S. alliance but also enhanced the military readiness and interoperability of our armed forces.

Furthermore, with the NATO+4 expedited purchase process, the U.S. arms sales to Korea is expected to increase significantly, helping create more jobs in the U.S while costing U.S. taxpayers nothing.

However, pressing challenges concerning North Korea are still of key concern to the alliance. Since the North Korean nuclear issue remains as a major task to be resolved, the continued close coordination between Korea and the United States is of vital importance.

Economic cooperation

The third area is our economic relationship. Through the alliance, Korea was able to achieve miraculous economic growth which was accompanied by democratic development.

Korea now ranks as the world’s 13th largest economy, ahead of Mexico and the United States’ 7th largest trading partner, placing it ahead of France, Brazil and India. Two-way trade volume reached over 83 billion dollars last year.

Korea is the number one ship builder, semiconductor and LCD maker in the world. Samsung and LG electronic companies are the second and third mobile phone maker respectively. Korea is the 5th steel producer and 6th largest automobile maker.

Korea is seeking to overcome its current economic impasse and achieve sustainable economic growth by developing future-oriented growth businesses such as green technology, next-generation IT, robotics applications and biotech industries.

Korea is currently Ohio’s 12th largest export market, with exports totaling almost 600 million dollars. Exports to Korea are spread across a wide range of manufactured goods such as machinery equipment, chemicals and transportation equipment.

Korean companies have invested nearly $21 million in Ohio. The companies are Kumho America Technical Center here in Akron, Hankook Tire American Corporation in Uniontown, Hyundai America Shipping Agency in Westlake and Hanjin Shipping Company in Cincinnati Westlake.

The pending Korea-U.S. Free Trade Agreement will expand our economic relationship to the benefit of the peoples of both our countries, while also reinforcing our already deep-rooted alliance as a whole. The Korea-US FTA is the most commercially significant FTA for the United States in more than a decade.

The FTA will eliminate 100% of all tariffs on industrial, forestry and maritime products. And nearly 95% of these goods will become duty-free within 3 years, including Ohio’s leading exports to Korea of computers and electronics, machinery, chemicals and transportation equipment..

Consumers stand to benefit from this FTA as a result of tariff elimination or reduction. For example, under the KORUS FTA, Samsung or LG color television sets will be 5 percent cheaper than before the FTA due to tariff elimination.

Historically, the United States has always ranked as Korea’s number one trading partner.  However, this trend reversed a few years ago and now China, the European Union export more goods to Korea. 

The KORUS FTA will provide market access, incentives and mechanisms necessary for U.S. products to reclaim lost market share in the Korean economy

The KORUS FTA will be the first FTA that the United States concludes in Northeast Asia. Given the economic as well as geo-political and strategic interests at stake, the importance of strengthening the U.S. presence in this region cannot be overemphasized, because this FTA could curb the rising tide of China’s economic and political influence in East Asia.

In spite of huge benefits, the KORUS FTA faces uphill battle in Congress with the anti-trade sentiments in the democratic leadership. With that in mind, I ask all of you to work together to achieve timely consent of ratification for this historic trade deal so that businesses and consumers can reap the benefits as soon as possible

Cultural ties

In addition to the political, military and economic transformation taking place in our alliance, the fourth area is our cultural ties and people-to-people exchange.

I think all of you would agree that people-to-people exchanges are vital in cementing friendly relationships between countries. 

There are almost 806,000 Koreans visiting the U.S, and nearly 587,000 Americans visiting Korea each year-for a total exchange of about 1.4 million people annually.

With the Visa Waiver Program started last November and the Work English Study and Travel (WEST) program, the number of Korean visiting the U.S. will be increased.

In terms of the number of foreign students in the United States, Korea places number one with more than 110,000 Korean students (15.2 percent) among about 720,000 foreign students.

Currently, Korea is the third-largest source of foreign students studying in Ohio. Nearly 1,700 Korean students are enrolled in Ohio colleges and universities.

Ohio has one of the most vibrant Korean communities in the United States, with about 14,000 residents actively participating in the Ohio economy.

Meanwhile, Korean food, music, art, cinema and fashion are widely spreading in the U.S. In turn, the influence of American culture has always been substantial since the Korean War. But it is becoming much more mutual.

I think you can now understand why Korea-US relations serve as the very backbone of Korea’s foreign policy. Through this profound and extremely well-knit relationship, the United States’ primary interest in Korea is peace.

Therefore, looking ahead, we believe the alliance will continue to play a vital role even after resolution of the nuclear issue, in the run-up to reunification and even beyond.

Mainstream Koreans understand this view. That is why a survey found that about 80 percent of our people regard the United States as the most important country for security, peace and stability. I believe that this will not change.

Northeast Asia Security Architecture

I want to conclude by looking a bit farther down the road. Northeast Asia is now undergoing dynamic changes both politically and economically.

We need to establish a cooperation mechanism to successfully manage such changes and to maintain stability and prosperity in the region.

As we continue to see progress in the Six Party Talks, we can foresee the opening of a new frontier for a Northeast Asia consultative mechanism.

In Northeast Asia, unlike in Europe, there was no such endeavor to create a multilateral framework on security because of heterogeneity in terms of political, economic levels and animosity stemmed from historical background of the region such as colonial occupation, territorial disputes and ideological division.

The historical uneasiness among neighbors has been one of the major stumbling blocks to confidence building and security cooperation.

Having said that, the experiment of the Six Party Talks involving all the major powers in the region becomes significant, as we can gauge the possibility of setting up a long-term security cooperation forum. The multilateral security framework we envision will help to keep the peace and stability permanently in place.

The third Working Group meeting on the establishment of a regional peace and security mechanism in the context of the Six Party Talks was held in Moscow on  February 19th and 20th amid a prolonged standstill over North Korea’s nuclear weapons program.

The participants discussed several ways to bring lasting peace to Northeast Asia in the meeting. Even though a tangible progress has not been made in the Moscow meeting, the meeting was significant given it could provide momentum to the stalled denuclearization process.

It is a long journey to achieve a permanent peace regime in Northeast Asia. There is an old saying that “little drops of water make the mighty ocean.” If we continue to cooperate each other to maintain stable security environment in the region with the confidence building measures and preventive diplomacy to avoid the potential conflicts, one day the Northeast Asian countries will see a lasting peace mechanism in the future.

Thank you very much for your kind attention.