MODERATOR: (Via interpreter) Ladies and gentlemen, we are now ready to begin the press conference with Minister Yun Byung-se and Secretary John Kerry. I am the spokesperson of MOFA. My name is Cho Tai-young. For today’s press conference, we’ll begin with an opening statement and then we will take questions. First we’ll listen to the opening statement of Minister Yun.

FOREIGN MINISTER YUN: (Via interpreter) Good evening, ladies and gentlemen. Let me begin by extending my warm welcome to Secretary Kerry to Korea. Secretary Kerry is a great partner with whom I have always had productive discussions as well as a good friend with whom I can connect. Today, he even brought us the good news of President Obama’s upcoming visit to Korea. Thank you, John.

President Park’s successful visit to the US in May last year and the following talks between the two leaders; Vice President Biden’s visit to Korea last December; five rounds of talks between Secretary Kerry and me; and President Obama’s upcoming visit to Korea in April. This series of senior-level exchanges between Korea and the US attests to the highest state of our alliance. I must say, President Obama’s upcoming visit comes at a very timely moment, given the recent developments on the Korean Peninsula and in the region.

As you are well aware, I met Secretary Kerry in Washington, DC last month, and we agreed to intensify our consultations to explore our policy options in light of the North Korean situation. In this regard, the two countries have continued to engage in high-level consultations, including during Deputy Secretary Burns’s visit to Seoul earlier this year. Today’s meeting is part of such ongoing consultations.

With regard to the situation on the Korean Peninsula, Secretary Kerry and I reaffirmed that the two countries stand fully prepared against any potential situation, given the mixed signals from North Korea as it tries to engage in a charm offensive, even as it continues its nuclear development and threats of provocation. In my talks with Secretary Kerry, I also had an opportunity to explain the recent inter-Korean agreement to hold a family reunion event as well as the outcomes of yesterday’s high-level meeting between the two Koreas.

Regarding the North Korean nuclear issue, we took note that meaningful progress can be made when the international community stands united, as seen recently in another part of the world. We shared the view that a principled and effective two-track approach of pressure and dialogue is necessary. In this regard, based on firm ROK-US collaboration, we will make greater efforts with China and other relevant countries to achieve substantial denuclearization of North Korea.

Secretary Kerry and I also discussed the future of the Korean Peninsula. I am also always mindful of President Park’s consistent foreign policy, which aims at the happiness of all people on the Korean Peninsula, as well as President Obama’s remarks during the speech during his visit to Korea in March 2012, -- “The forces of history and hopes of man could not be denied.” -- which emphasize the inevitable nature of the reunification of the Korean Peninsula. Recalling our leaders’ thoughts, I laid out my government’s position on the peaceful reunification of the Korean Peninsula.

In response, Secretary Kerry said it was very timely that President Park highlighted the importance of the discussion on the future of the Peninsula by calling the reunification a huge bonanza. Secretary Kerry also reaffirmed the US support for the reunification of the Peninsula, as stated in the joint declaration in commemoration of the 60th anniversary of the ROK-US alliance. We agreed to consolidate our strategic consultations regarding the sustainable peace and reunification of the Korean Peninsula.

Going beyond these issues, we shared the view that it is critical for the countries in the region to improve bilateral relations in order to mitigate the aggravating Asian paradox.

In this regard, I appreciated the constructive efforts of the US to improve the relationships among the countries in the region, and to this end I pointed out that countries should refrain from regressive remarks that undermine the trust of their neighbors.

We noted the passage of the bill on the extension of the ROK-US Civil Nuclear Cooperation Agreement at the US Congress as well as the smooth conclusion of the ROK-US negotiations on defense-burden sharing. We agreed to continue to work together on important bilateral issues such as the revision of the ROK-US Civil Nuclear Cooperation Agreement and the transition of wartime operational control. We will work based on the spirit of alliance to find mutually satisfactory solutions. We also exchanged our views on ways to promote bilateral economic cooperation, including the implementation of the KORUS FTA and ROK’s participation in the TPP.

As the mutual visits between Secretary Kerry and me in April last year led to the successful visit of President Park to the US, I have high expectations that our mutual visits in the early weeks of the new year will lead to a successful visit of President Obama to the ROK in April, ultimately contributing to the further development of the ROK-US comprehensive, strategic alliance. Thank you.

MODERATOR: (Via interpreter) Next, Secretary Kerry, you have the floor.

SECRETARY KERRY: Well, thank you very much, Minister Yun, my friend, Byung-se. I appreciate very, very much the generous welcome, and I appreciate my in-depth, comprehensive discussion that I just had with President Park. And I especially thank both President Park and Minister Yun for a very warm and generous welcome, as well as for a very productive discussion. It’s a great pleasure for me to be back in Seoul.

And while it’s interesting – both of us are focused on the current Olympics, and we are both rooting for our home teams, but it is noteworthy that preparations are already underway for PyeongChang in 2018. It shows you how much work has to be done and how the process really never stops.

This is my fifth trip to Asia as the Secretary of State, and I want to confirm that the United States rebalance to the Asia Pacific remains a top priority for the Obama Administration. Every day, at the President’s direction, we are directing more diplomatic, more economic and more military resources to help advance the goals that we share with our partners throughout this region.

The US-Republic of Korea alliance is crucial to that rebalance. And our relationship is without question the lynchpin of stability and of security in Northeast Asia. That’s why President Obama hosted President Park for a productive set of meetings last year, and that’s why, as Minister Yun just noted, the President will visit Seoul for the fourth time this April. And that is why Foreign Minister Yun was also the first foreign minister that I hosted in the new year, and that is why I am here today, on the first stop in my visit to Asia in 2014. This is an important moment. There are vital issues in the region, and this is a central relationship to resolving any of those issues.

More than six decades ago, our alliance was forged on the battlefield, and the United States remains unwavering in our commitment to the defense of the Republic of Korea. Last month, the United States and the Republic of Korea successfully concluded negotiations funding the US military presence on the Korean Peninsula. A special measures agreement that we signed will help ensure our military alliance is ready and able to deter or defend against North Korean aggression, should that occur. We are in lockstep with the Republic of Korea when it comes to our efforts to address the threat posed by North Korea – posed by their nuclear weapons and the ballistic missile programs.

We have yet to see evidence that North Korea is prepared to meet its obligations and negotiate the verifiable denuclearization of the Korean Peninsula. Let me be clear: The United States will not accept North Korea as a nuclear-armed state. We will not accept talks for the sake of talks. And the D.P.R.K. must show that it will negotiate and live up to its commitments regarding denuclearization.

In both diplomatic and security terms, close, trilateral cooperation among Washington, Seoul, and Tokyo remains essential. And, of course, China has an important role to play. Tomorrow, I will go to Beijing to discuss ways that we may be able to intensify our collective efforts. At the same time, progress in inter-Korean relations is important – not only to the Korean people, but also to the United States and to the world.

So we very much welcome President Park’s efforts to build trust, which I believe can lead to improvements in North Korea’s human rights situation and ultimately lay the groundwork for peaceful reunification of the Peninsula. We congratulate President Park for her discussions of this, for her willingness to express a vision about it, and particularly for her declarations regarding the possibilities of economic bonanza and other benefits that could come from that vision.

US-Republic of Korea security cooperation extends, obviously, well beyond Northeast Asia. Close cooperation on both regional and global security challenges is a key pillar of the US-Republic of Korea relationship. We have worked together and with international partners in every corner of the globe. For years now, US and South Korean soldiers have served side by side in Afghanistan, and today, the Republic of Korea is a major donor to Afghanistan’s reconstruction and stabilization efforts. The Republic of Korea has also contributed to the international efforts to ease the humanitarian suffering in Syria, and also to deal with the problem of refugees in the region.

Let me underscore that the US-Republic of Korea relationship today is much more than a military alliance. It is a global partnership that is growing stronger every year. In the nearly two years since the US-Korea Free Trade Agreement came into force, our bilateral trade has grown to more than $100 billion annually. Today, the Republic of Korea is our sixth-largest trading partner, and there is room, obviously, for even more growth, which we look forward to. This afternoon, we discussed the need to work together to ensure that the KORUS commitments are fully implemented so that job growth and other benefits for both of our peoples can be fully realized.

The strong economic bond that we share really is rooted in the strong bonds among our peoples. Today, more than 1.7 million Korean Americans live in the United States, and nearly 71,000 South Korean students are studying on our shores. For per capita, that is more than any other major economy in the world. And the number of American students here in places like Seoul and Busan continues to rise every year.

So, as we stand here tonight, we can safely say that the United States and the Republic of Korea are strong allies growing stronger; we are partners strengthening the partnership; and we are friends strengthening our friendship.

Last year, we celebrated the 60th year of this extraordinary relationship and all of the transformation that has come with it. This year marks the first year of the next 60. We hope that 2014 and the years that follow will bring about greater prosperity, greater opportunity, stability, and ultimately peace, for our nations and for all of our neighbors.

Thank you all for the chance to share a few words with you, and I look forward to any questions.

MODERATOR: (Via interpreter) Next we would like to open the floor to questions. Since we don’t have too much time, I would like to ask you to keep your questions brief. First, from YTN.

QUESTION: (Via interpreter) Yes, my name is Kim Hui-joon. I’m from YTN. I would like to ask a question about North Korea. You said that progress is very important. Yesterday, for the first time in seven years, there was a high-level inter-Korean meeting. And at the meeting, North Korea said that – demanded that the ROK-US joint military exercises be postponed until after the family reunions. And if the military exercises go on as planned, do you think that this might impact the reunions, family reunions? So I would like to know your reaction.

And for the nuclear issue, the North said in the meeting that this is not something that should be discussed between the two Koreas. You said this could be translated to mean that it should be discussed within the Six-Party Talks or between North Korea and the U.S bilaterally. So first Secretary Kerry, and then Minister Yun, please.

SECRETARY KERRY: Yeah, I’m not sure that I understand the second question on the nuclear issue. Can you restate that?

QUESTION: (Via interpreter) Regarding the nuclear issue, yesterday, during the high-level inter-Korean meeting, they said – North Korea said that this shouldn’t be discussed between the South and the North. So regarding nuclear – denuclearization, it could mean that North Korea wants to talk directly with the US So what is your position?

SECRETARY KERRY: We’re – our – well, let me be clear, first of all, on the reunification issue. The United States does not believe that it is appropriate to link a humanitarian issue such as reunification with any other issue. And since the exercises are exercises that are not changed – not bigger, not different, occurring at exactly the same time as they have occurred every year, in the same manner that they have occurred as a matter of readiness between the United States and the Republic of Korea – there is no legitimate excuse for linking the two.

The family reunification is a matter of human rights. It’s a matter of decency. It’s a matter of living up to normal standards of human behavior and of human – of shared values and standards in the international community. And we would urge a complete separation of these two and no use of one as an excuse to somehow condition the other.

With respect to the Six-Party Talks versus individual talks, nuclear talks, the United States position has not changed. It is clear. We are in full agreement with President Park’s stance on North Korea. Today we reaffirm our commitment to a common goal, which is the verifiable denuclearization of the Korean Peninsula in a peaceful manner. And we are committed to going to talks only if there is a clarity with respect to the steps that need to be taken for denuclearization by the North. We are not in favor of talks for the sake of talks. We’ve been through that exercise previously. We want to know that this is real. And it’s – frankly, the responsibility is on North Korea to take meaningful actions to demonstrate that denuclearization is real. And it’s time for the North to choose the path of peace and to refrain from provocations and/or using excuses to avoid the responsibility that they bear.

So we are not engaged in back-channel efforts to have face-to-face talks or bilateral talks. We are committed to a process, together with our allies and friends in this effort, to guarantee that when and if we get back to talks those talks are meaningful.

FOREIGN MINISTER YUN:  (Via interpreter) With regard to the Key Resolve military exercises and the family reunions, as Secretary Kerry said, the family reunions are a humanitarian matter in every way. In this vein, it is the firm position of the Korean government that this issue should not be linked to any other. It is my understanding that this position was clearly relayed to the North Korean side at the high-level inter-Korean meeting yesterday. Let me make it clear that there is no daylight between Korea and the US in this regard. For your information, in terms of the Key Resolve military exercises, the plans to conduct them are notified to the UN Command and all the relevant countries in advance and thus are carried out in a very transparent manner. So, there is no reason for North Korea to take issue with the exercises. Moving on to the North Korean nuclear issue, this issue is basically one among the member states of the Six-Party Talks and one that the international community shares concerns over. Above all, it is one that is related to the safety of the Korean people, which makes it one that should by all means be discussed between the two Koreas. For these reasons, the ROK is currently working closely with the US bilaterally, with the US and China trilaterally and other members of the Six-Party Talks. As much has yet to be discussed in detail with regard to the resumption of dialogue, though, head delegates of members of the Six-Party Talks intend to make as many efforts as they can in that regard down the road.

MS. PSAKI: The next question will be from William Wan of The Washington Post.

QUESTION: Hi. I wanted to ask about the rift between our allies. How can US and Korea present a united front and coordinated Asia policy when our two biggest allies – the US allies in Asia, Japan and South Korea, are at each other’s throats? And what practical actual steps can you take, on the part of Secretary Kerry, and do you intend to take, on the part of Minister Yun, to bring those two sides together?

SECRETARY KERRY: Look, there is no question but that positive relations between Japan and its neighbors are in the best interests of the United States, the region, and the two countries themselves. That’s our belief. And we respect the fact that the Republic of Korea and Japan are both developed free-market economies that share values. They share a robust economic relationship, and they also share with us compelling strategic interests. So while the United States obviously has a strong interest in the relationship and in the security component of the relationship, it’s up to Japan and the Republic of Korea to put history behind them and move the relationship forward. And it is critical at the same time that we maintain robust trilateral cooperation, particularly in the face of North Korea’s nuclear threat.

So we urge our friends in Japan and in North Korea – in North Korea and South Korea – excuse me, in the Republic of Korea – we urge both of them to work with us together to find a way forward to help resolve these deeply felt historic differences that still have meaning today. And we respect the meaning that they still have today. We understand the meaning that they still have today.

So I made this case to Foreign Minister Kishida last week when he visited Washington, and again – we talked about it today with President Park and with Foreign Minister Yun. So we will continue – the United States will continue, I will personally continue to encourage both allies to find mutually acceptable approaches to legacy issues from the past and find ways to enhance bilateral and trilateral cooperation that will define the future. We believe it is possible to do both. And we’re going to work very hard, obviously, over the course of the next weeks and months to do so.

FOREIGN MINISTER YUN: (Via interpreter) I would just like to add one thing regarding the current relationship between Korea and Japan. Of course, since its inauguration, the Korean government has made a lot of efforts to stabilize the relationship between Korea and Japan. But regrettably, as the international society has witnessed, what we have seen over past months is a lot of retrogressive remarks and actions by some Japanese leaders based on historical revisionism. As long as such words and actions continue, it will be difficult to build trust between the two countries. We hope that Japanese leaders will face up to history and take sincere actions that can help win trust of their neighboring countries. We are always open to dialogue with Japan. Japan, on its part, must make efforts to create an environment conducive to dialogue. The international community these days is deeply concerned over many relevant issues, including those regarding Japan’s past aggressions and its sexual enslavement of Korean and other Asian women for its troops during World War II. Japanese leaders should pay attention to these concerns and take appropriate measures to improve Korean-Japan relations. 

MODERATOR: (Via interpreter) The next question is from Ahn Dong-hwan with Seoul Sinmun.

QUESTION: (Via interpreter) Yes, I am Ahn Dong-hwan with Seoul Sinmun. I would first of all like to ask Secretary Kerry regarding the two most important issues in the Korea-Japan relationship. As former Secretary of State Hillary Clinton and Defense Secretary Chuck Hagel said, the US government has made it explicit that the Senkaku Islands are covered by the US-Japan defense treaty. Is Dokdo, which is under Korea's administrative control, also covered by the ROK-US Mutual Defense Agreement? During your visit to Japan last October, you laid a wreath at a Tokyo cemetery for the remains of unidentified Japanese war dead, demonstrating through action your opposition to paying respects at the Yasukuni Shrine. However, Japan’s Prime Minister Abe visited the Yasukuni Shrine last December in a move to seemingly deny the historical legitimacy of the “Tokyo Trial” and the post-war order. What do you make of such remarks and actions by the Japanese leader? And when President Barack Obama visits Korea and Japan in April, do you think that he will try to mediate the relations between Korea and Japan?

And to Minister Yun, there have been a lot of press reports about closed-door contacts between North Korea and Japan. Many people express the view that such unilateral actions by Japan are not conductive to Korea-US-Japan trilateral cooperation. What do you make of this view?

SECRETARY KERRY: So three questions there, I think. On the Senkaku Islands, I agree with the statement of Secretary Clinton and I agree with the statement of Secretary Hagel. And that is the position of the United States with respect to those islands.

With respect to the prime minister’s visit, we’ve spoken out. I think that we made clear that we had a difference of opinion with respect to the judgment about the visit, and that was made clear at the time. And I don't think we need to dwell on it now.

Which brings me to the essence of your question, which is this notion of an effort to mediate between the parties and will President Obama do that. Frankly, we hope that this issue will not be outstanding in a way that requires the President to do that. We need to be doing it now. We don’t want to wait until President Obama is here, obviously, to get moving in a direction that helps to deal with this. So as I said earlier, I’ve already been engaged with Foreign Minister Kishida. I was engaged today with President Park and with Foreign Minister Yun. And I will continue, together with our Ambassador, with the Foreign Minister, with our Assistant Secretary of State Mr. Russel, and others – we will be engaged in this over the next days and weeks. And our hope is that it will be possible to try to find a way forward.

But we also have, frankly, issues of enormous current pressing concern that deal with security and that are relevant in terms of today, not in terms of history. And it is vital for us to be able to continue to stay focused on the high stakes, in terms of everybody’s lives right now, of those issues. And we intend to continue to make certain that we’re paying adequate attention to those priorities, even as we deal with this legitimate concern about the past. And we will do so.

FOREIGN MINISTER YUN: (Via interpreter) Yes, so regarding contacts between North Korea and Japan, recently there have been quite a lot of press reports about such contacts. But Japan has not officially confirmed these reports, and so I myself am not in a position to talk about that.

But if such contacts actually take place, and without sufficient advance consultation with other members of the Six-Party Talks, I don't think they will be very helpful or conducive for coordination on North Korean issues among Korea, the US and Japan and among members of the Six-Party Talks, which has been moving well forward.

QUESTION: (Via interpreter) One point that I would like to ask again to Secretary Kerry regarding the defense treaty or for the Dokdo Islands, do you believe that it’s part of the defense treaty between Korea and the US?

SECRETARY KERRY: The – which island? I’m sorry. I can’t hear you.

QUESTION: (Via interpreter) The Dokdo Islands. In the mutual defense treaty between Korea and the US, how do you view Dokdo Islands?

SECRETARY KERRY: I think we have answered that previously, and we have affirmed that it is.

MS. PSAKI: The final question will be from Michael Gordon of The New York Times.

QUESTION: Mr. Secretary, last April during a visit to Beijing, you sought China’s cooperation in persuading North Korea to commit itself to denuclearization. But since then, as you’ve noted, North Korea’s nuclear program has continued to advance and economic ties between China and the North continue to be substantial. Now almost a year later, you’re headed back to Beijing to make the same appeal again. What specifically do you want the Chinese leadership to do with regard to North Korea? And why realistically should one expect the Chinese leadership to put sufficient pressure on North Korea to reverse course on the nuclear front? Why would one expect China to elevate its concerns about the nuclear issues over its historic focus on stability, since that really didn’t occur over the past year? And if that isn’t going to happen, should the Obama Administration review an adjusted strategy?

And then a question for both, for the Minister and Mr. Secretary Kerry: Pertaining to developments in North Korea, do you see the execution of Kim Jong-un’s uncle as a indication that Kim Jong-un is consolidating power or as an indication of instability in the regime? Thank you.

SECRETARY KERRY: Well, Michael, you are correct in that I did raise it when I was there before. And I’m obviously going to be talking about it again. But I don't think it is correct to make an assumption that the situation is anywhere near what it was when I came here last year. When I came here last year, I arrived, I think, on a weekend, during which time North Korea was still publicly rattling the saber, making threats, and poised to test. And we were in a very tense moment where there had been a series of tests, of provocations. The United States had responded with a deployment of Aegis destroyer and a THAAD system to Guam. And there was a sense of potential conflict in the air of immediacy. And with that visit to China and China’s assumption of some initial steps, which they did take, that quieted down. That changed, and there has been a change over the course of this last year.

Now, notwithstanding that change, and not withstanding real steps that China has taken, we still find a reluctant North Korea, an unwilling North Korea, a stubbornly resistant North Korea to taking the steps that are necessary to move towards denuclearization and have real talks about the future. The fact is, the United States and China agree on the fundamental importance of a denuclearized North Korea. There is no question of that.

But China has a unique and critical role that it can play due to its economic, its geographic, its political, and its historical, cultural ties with North Korea. No country has a greater potential to influence North Korea’s behavior than China, given their extensive trading relationship with the North. As we know, all of the refined fuel that goes into move every automobile and every airplane in North Korea comes from China. All of the fundamental rudimentary banking structure that the North has with the world passes through China. Significant trade and assistance goes from China to North Korea.

So China has enormous ability to be able to have an impact here, and tomorrow my instructions from President Obama are to sit with the Chinese leadership and make the case that we cannot wait till the North has either gone so much further in its program that it’s even more complicated to deal with, or created a provocation that incites a response that creates even greater problems of security. So our belief is that China can do more now to urge North Korea to begin taking action to come into compliance with its international obligations. And I will encourage China to use all of the means at its disposal to do so.

Now, I want to make it clear: China has responded. China has done positive things. China is very concerned about what has happened with Chang Sung-taek and the purge. I think there are leaders in China deeply upset by the reluctance of Kim Jong-un to receive an envoy and to engage in serious dialogue, and the reluctance even to respond to very clear urgent needs to create stability on the peninsula and in the region that would come from a legitimate denuclearization effort.

So there is more that China can do. But even as I say that, this is not just about what China does, this is about what all of the Six-Party partners are prepared to do in order to try to move this issue once and for all. So we are hopeful that we can – as we did with Iran sanctions and as we have in other efforts – ratchet up the effort at this point in time, as appropriate, to the reluctance of the North to yet respond adequately.

FOREIGN MINISTER YUN: (Via interpreter) Yes, as I mentioned in my opening statement, from the recent developments on the Iranian nuclear issue, we can learn a lesson that united international cooperation and stance is highly conducive to making progress on nuclear issues. In a similar vein, I believe with regard to the North Korean nuclear issue that international cooperation is very important as well. In this light, Korea and the US, together with China, have been working closely together toward the denuclearization of North Korea.

Such joint efforts include expressing non-tolerance of a nuclear North Korea and opposition to further nuclear tests by North Korea, which the Chinese government did a number of times last year, and imposing concrete sanctions measures on the country. These steps are seen in the positive light. With regard to ways to make substantive progress toward the denuclearization of North Korea, I believe that smooth operation of the two-track strategy will be conducive to producing tangible progress on the North Korean nuclear issue. Both dialogue as well as persuasion and international pressure on North Korea under the two-track approach should be simultaneously pursued, as sanctions imposed by the UN Security Council are effective. In terms of dialogue, we uphold our firm position that we will not hold dialogue for the sake of dialogue.

Regarding whether or not the execution of Jang Song-thaek will lead to consolidation of the North Korean regime, this can be viewed from various aspects. Over the past year, the North Korean regime reshuffled a number of its military personnel, making us assume that in the short term, it fully controls the military. But nobody can certainly tell how long the stability of the regime would last. Nonetheless, the execution of Jang Song-thaek leads its neighboring countries to the judgment that the situation in the country is unstable and considerably fluid, and its uncertainty is getting greater than ever before. With regard to any possible impact of this instability and fluidity on North Korea’s foreign policy, including that toward the ROK, the Korean government will deal with any impact in close consultation with the US and with other relevant countries.

MODERATOR: (Via interpreter) This will conclude the joint press conference of the ROK and the US Foreign Ministers. Thank you, the two ministers, for your very precise answers to the questions. Thank you.