Remarks
by Kim Hong-kyun
Special Representative for Korean Peninsula Peace and Security Affairs


The 28th Korea-U.S. Business Councils Plenary
November 10, 2016



Chairman Cho Yang-ho,
Chairman Paul Jacobs,
Distinguished guests,
Members of Korea-U.S. Business Councils,

It is my great pleasure to meet you all at today’s Korea-U.S. Business Councils Plenary. This meeting comes at a timely juncture as Pyongyang’s nuclear and missile threats are growing at an unprecedented pace.

At the World Economic Forum (WEF) in Davos in January last year, Foreign Minister Yun Byung-se took part in the High-Level Panel Discussion on Geopolitical Risk. It was the first time in Davos that “geopolitical risk” was addressed as a single, prime agenda. The panelists shared their views on the impacts of geopolitical factors on the global economy, notably ISIL, violent extremism and the North Korean and Iranian nuclear issues.

An important point raised at that time was the need for multinational corporations to exercise “geopolitical due diligence.” In other words, checking the geopolitical risks associated with their business to avoid any inadvertent, unintended and unpleasant consequences.

This demonstrates that the North Korean nuclear conundrum is not just a security issue in a conventional sense. It is also closely linked to the economic activities that you are doing everyday.

Let me elaborate further.

Korea has achieved an unprecedentedly rapid economic growth and is now trying to take another leap forward through innovation and creativity. We are also playing a role as a driving force for sustainable development in the global economy as a reliable global partner of the U.S.

However, in doing so, we face a major obstacle that must be overcome, namely the North Korean nuclear issue.
Moreover, this is also the most urgent issue for both the ROK and the U.S. governments, especially for the incoming U.S. administration.

As you may know, this year alone, North Korea has already conducted two nuclear tests and fired 24 ballistic missiles of all types. The North Korean regime has publicly declared its intention to actually use nuclear weapons against its foes.

In the U.S., there is an increasing awareness that we need an extraordinary response commensurate with the gravity and urgency of the situation. There is also a growing recognition that North Korea’s nuclear and missile programs constitute a ‘direct threat’ to the U.S. as well.

For instance, the RAND Corporation’s recent report, put North Korea’s nuclear threat at the top of the list of five major potential threats for the incoming U.S. administration.

And a few weeks ago, right after the visit of Michele Flournoy, the CEO of Center for New American Security (CNAS) and her team to Seoul, the Secretaries of the U.S. Army, Navy and Air Force gathered together at a CNAS event in Washington D.C., and stressed the need to strategize ways to address North Korea’s nuclear threat during the transition period for the next U.S. administration.

Based on this common understanding, the ROK and the US are attempting to change North Korea’s strategic calculus. This is based on three pillars: across-the-board diplomatic pressure on North Korea, a holistic approach and a strong military deterrence.

The first pillar is imposing full court diplomatic pressure on North Korea. Even at this moment, discussions are being held in the UN Security Council for a new resolution which is expected to be adopted soon.

By closing the loopholes of existing resolutions, expanding sanctions targets, and adding new biting elements, the new UN Security Council resolution will tighten the noose on North Korea.

Moreover, the ROK and the U.S. are pursuing much stronger sanctions of their own across a broad range of areas. As soon as the new resolution is adopted at the UN Security Council, the ROK government will announce additional unilateral sanctions.

Meanwhile, the ROK and the U.S. are joining forces to further deepen North Korea’s diplomatic isolation and its economic suffering. More than 60 countries have taken steps such as downsizing diplomatic ties, refusing the visits by North Korean high-level officials, and freezing economic cooperation with North Korea.

The second pillar is taking a holistic approach. There is a growing view that we should approach the North Korean nuclear problem in the context of the broader North Korean issue. In this vein, we are addressing, along with the nuclear issue, the North Korean human rights issue, the issue of North Korean workers abroad and the flow of information into the North.

These are the North Korean regime’s Achilles’ heel. Helping the people in North Korea enjoy freedom, happiness, and human dignity, which are the inherent rights of any human being, can act as an agent of change from inside.

In this regard, I count on your support for such efforts . By underscoring freedom and human rights, highlighting the importance of developing individual capacity, you can inspire North Korean people who have access to outside information to open their eyes. The image of global enterprises which uphold universal values will greatly appeal to North Korean youngsters and make them aspire to become a global citizen. In the long run, this can also be a potential to induce change from the inside of North Korea.
The third pillar is maintaining credible military deterrence, including extended deterrence, by the ROK-U.S. alliance.

Kim Jong-un’s single-minded pursuit of mastering nuclear and missile capabilities is clearly misguided. He may think North Korea can sit down with the U.S. as a nuclear weapons state and undertake nuclear disarmament talks on his own terms.

However, North Korean regime should not be under any illusion. The ROK and the U.S. will never accept North Korea as a nuclear weapon state. North Korean regime must recognize that nuclear weapons will not guarantee its security. It is the opposite. It will further increase instability as well as deepen isolation and hardship.

We will remain on full alert against all types of possible provocations from the North.

As part of our joint preparedness, at the ROK-U.S. Foreign and Defense Ministers’ (2+2) Meeting, the U.S. reiterated its ironclad and unwavering commitment to the defense of the ROK and to the deployment of the THAAD system. In particular, both countries agreed to establish the Extended Deterrence Strategy and Consultation Group (EDSCG).

This group is expected to serve as a comprehensive, multi-layered consultation mechanism in which the ROK and the U.S. can hold strategic consultation on extended deterrence. It will also allow us to discuss DIME, which stands for diplomacy, information, military coordination, and economy.

Our two countries have been leading the global pressure campaign against North Korea. As a result, now the frame of the“entire international community vs. North Korea”is clear and solid.

It is crucial that we, the international community, maintain the current sanctions and pressure campaign.

Let’s not forget that sanctions is supposed to fail until the day it succeeds. The effects of sanctions are hard to recognize until the critical moment arrives. This is why we should be patient and persistent in pursuing our sanctions policy.

Now, some people may think that sanctions are ineffective or short-lived.

But if history is of any guide, North Korea has exploited past milestone deals to fool the international community and buy time to advance its nuclear and missile programs.

We have not closed the door to dialogue but it has to be a meaningful dialogue for denuclearization of North Korea.

If we prematurely get into dialogue with the North at this juncture, when they are failing to show any interest in denuclearization, it would be tantamount to validating Pyongyang’s wrongdoings.

Distinguished guests,

This year marks the 25th anniversary of simultaneous admission of the two Koreas to the UN. President Obama pointed out in his keynote speech at the UN General Assembly that the ROK has come to the path of success, while North Korea has become a wasteland. Indeed, there is no starker contrast in the entire UN history.

In this 21st century, when the wave of globalization, reform and openness is sweeping many parts of the world, only the North Korean regime is trying to turn back the clock of history by going all-in for the nuclear and missile programs, in complete disregard of its own people’s livelihoods.

We are ready to offer North Korea an opportunity to move in the direction of peace and co-prosperity, whenever it makes the right choice and shows sincerity toward denuclearization.

The ROK and the U.S. have forged a partnership based on mutual trust and common values. The partnership between the two countries, as evidenced by more than 60 years of achievement, is stronger than ever.

As I explained earlier, the ROK and the U.S. have worked closely with each other to swiftly respond to North Korea’s nuclear and missile threats, based on the ROK-U.S. alliance as the linchpin of peace and security in the Asia-Pacific region.

Yet there is more. As a global strategic partnership, the ROK-U.S. alliance is now expanding its horizon to new frontiers well beyond the Korean Peninsula. It covers global issues such as terrorism, violent extremism, refugees, climate change, cyber security, and epidemics.

The year 2017 will be a critical juncture for our two countries. Given that it has been one of the most “troubled and turbulent time” in recent years, we may face a myriad of daunting challenges.

Collective challenges require collective response. As such, it is imperative that the ROK and the U.S. continue to further cement our longstanding strong alliance.

We will continue close communication and coordination with the next U.S. administration so as to further deepen and develop our partnership on a variety of areas and issues, including those on the Korean Peninsula.

As the ROK-US alliance has shown proud track record of transforming challenges into opportunities, we will continue to do so and will remain as the most reliable and trustworthy partner.

I hope all of you here in this room become reliable companions throughout our journey.

Thank you. End.