열린장관실

 

 

 

Remarks by H.E. Ban Ki-moon

Minister of Foreign Affairs and Trade

at Dinner hosted by

the National Press Club

 

- 30 August 2004, Canberra -

 

 

 

"Toward a comprehensive partnership between Korea and Australia in the 21st century"

 

 

 

 

   Mr. Ken Randall, President of the National Press Club,

   Distinguished Members and Guests,

   Ladies and Gentlemen

 

   I would like to thank Mr. Randall for his kind introduction. I am immensely pleased to have this opportunity to address such a distinguished audience with representatives from the civil service, the media, think tanks and the business sector.  

 

   First of all, I offer my hearty congratulations to the Australian Olympic team on the great success in Athens. Seventeen gold medals that Australian Olympic athletes have won are the  achievement unprecedented in the Australian Olympic history, which I believe symbolizes the strong and prosperous Australia.

 

 

 

   Australia has a unique and proud history of overcoming numerous challenges and establishing a democracy and a flourishing market economy. Australia is also admired by the world for its active involvement in regional and global issues including non-proliferation of nuclear weapons and anti-terrorism, making its voice heard and respected globally.

 

   Tonight, I would like to share some thoughts with you on Korea's major diplomatic tasks and discuss ways to further deepen the vibrant relationship between our two countries.

 

   Distinguished Guests,

 

   History teaches us that only those countries that wisely overcome the challenges from within and without prosper.

 

 

 

   Due to its geopolitical situation, Korea has been destined to cope with numerous adversities such as foreign invasions.   However, the Korean people have shown courage, determination and wisdom in overcoming the challenges and transforming them into opportunities.

 

   Even now Korea is trying hard to fulfill various tasks on the road to becoming a much more prosperous and advanced democracy.

 

 

 

   Before touching upon Korea's major foreign policy tasks and issues, I would like to call your attention to the fact that as much as sixty two percent of Korea's annual GDP is created from its trade with other countries.

 

 

   Therefore, it is extremely important for us to formulate and carry out the proper directions for foreign policy.

 

   The basic tenet of the Korean government's foreign policy is the promotion of peace and prosperity on the Korean Peninsula and beyond, while emphasizing active cooperation with the international community.   I believe that the Korean government has been dealing reasonably well with its diplomatic issues such as North Korea's nuclear program, inter-Korean relations, realignment of the ROK-US alliance and contribution to rebuilding Iraq.

 

(North Korea's Nuclear Issue and the Six-Party Talks)

 

   Distinguished Guests!

 

   As we all agree, North Korea's nuclear program is an issue of regional and global concern.

   The last three rounds of the Six Party Talks have awakened the global community as well as the parties concerned to the complexity of this issue.

 

   At the same time, there have been developments which make us cautiously optimistic that the problem may be solved peacefully.

 

   First of all, the consensus among the six countries is to resolve the nuclear issue through diplomacy.   All the parties are in complete agreement that greater benefits can be attained by continuing the talks, rather than resorting to other options.

 

 

 

 

 

 

   Secondly, The Six Party formula has developed into a more institutionalized process of dialogue.   The negotiations are now under way to set the date for the next Working Group Meeting, which is crucial for the preparation of the fourth Round of Talks to be held at the end of September in Beijing.

 

   Thirdly, the Six-Party Talks have now entered the stage of negotiating on substances as the two Koreas and the US respectively put forward concrete proposals for denuclearization in the third round of the Talks.   Now that three proposals are on the table, we hope that progress will be made in the coming talks to seek a significant breakthrough.

 

 

 

 

 

 

   Members of the Six Party Talks are united in their efforts to convince North Korean leaders that nuclear weapons will never guarantee its security and welfare, and also in their attempt to assure North Korea that a better future lies ahead of a North Korea free of nuclear weapons.

 

   In this regard, President Roh Moo-hyun made clear his political will that South Korea is ready to provide North Korea with concrete and wide-ranging economic assistance once the North Korean nuclear issue is resolved.

 

   I assure you that the Korean government will continue, with patience and resolve, to do its best to bring about a nuclear free Korean Peninsula.

 

 

 

 

(Inter-Korean Relations)

 

   Since the division of the Korean Peninsula, maintaining peace and stability on the Korean Peninsula has been a top policy priority for the Korean government.

 

   To this end, the best way is to build mutual trust between South and North Korea by increasing exchange and cooperation in various fields.

 

   Is is within this context that the current Korean government has been working hard to strengthen inter-Korean relations under the " Peace and Prosperity Policy".   Under this initiative, the Korean government has been vigorously seeking to deepen mutual trust and economic cooperation with North Korea.  

 

 

 

   Since President Roh took office one and a half years ago, a total of 62 government-level meetings were held, including five rounds of Ministerial Meetings.   Moreover, holding two rounds of the general-level Military Talks in June was a significant step toward military  confidence building measures.  

 

   In my meeting with the North Korean Foreign Minister at the ARF Meeting last July in Jakarta, we agreed to open a diplomatic channel in New York.

 

   The two Koreas have also been making progress in major projects for economic cooperation.

 

   The construction to reconnect the road and railways, which will be completed by the end of October and next year, respectively, is smoothly under way.

 

   The improvements in transportation infrastructure will invigorate inter-Korean economic cooperation.   When the roads and railways are connected with the Trans-Siberia railways and Chinese transportation lines, it will help greatly to facilitate exchanges and movements between South and North Korea, creating a favorable environment for a "Northeast Asian community."  

 

   The pilot project of the (90 thousand square meter) Gaesung Industrial Complex will kick off in the latter part of this year.   This project will enable small and medium enterprises of South Korea to strengthen their competitiveness by taking advantage of North Korea's cheap labor and land.  

 

   I believe that completion of the Gaesung project will herald a new era of economic interdependence between the two Koreas.

 

   Moreover, last year there were exchanges of visits between over 15,000 people, and  inter-Korean trade reached about 700 million US dollars, accounting for one-third of North Korea's total trade.

 

   In spite of the current temporary hiatus in the dialogue between the two Koreas, I believe that inter-Korean cooperation and exchange is now on an irreversible track.   The stakes are simply too high for both sides, especially for North Korea, to retract its steps.

 

   I expect that increased interaction between the two Koreas will eventually lead North Korea to open up and reform, thus encouraging it to become a more responsible member of the international community.

 

 

 

 

(ROK-US alliance)

 

   Distinguished Guests!

 

   As is the case with Australia, our alliance with the United States has served as the bedrock for Korea's peace and prosperity.   

 

   The alliance is now undergoing an important transformation due to the changing security environment on the global and regional levels as well as advances in military technology.  

 

   Two main issues on the table between the ROK and the US are the relocation of the United States Forces in Korea and the reduction of American troops stationed in Korea.

 

 

 

 

 

   After a series of close consultation, the two countries have recently reached an agreement on the relocation of the US bases, including the Yongsan Garrison in the Seoul metropolitan area.   The U.S.F.K. will eventually be integrated into two major hubs, which will offer an environment more favorable for the American troops to be stationed.   

 

   In dealing with the reduction of the US forces in Korea, both sides share a common understanding that it should be carried out in a manner that will enhance combined defence capabilities.   

 

   The ROK-US alliance will continue to serve as the central pillar not only for the consolidation of peace and security on the Korean Peninsula, but also for the long-term peace and prosperity in Asia and the Pacific region.

 

(Contribution to peace and reconstruction in Iraq)

 

   Korea's contribution to peace and reconstruction in Iraq and the Middle East has marked a milestone in Korea's cause-oriented foreign policy.   Through a painful domestic consensus building process, the Korean government has decided to dispatch additional troops which will be helping the Iraqi people to rehabilitate their war-torn country.   We will also provide financial aid of about 260 million dollars over a period of five years.   

 

   Our decision stems from our firm commitment to the values of democracy and freedom now embraced throughout the world.  Furthermore, Korea feels obliged to repay the international community, commensurate with its capabilities, for the generous foreign assistance given during its time of need in the 1950's.

 

   It is our sincere hope that, with international support and humanitarian assistance, Iraq will be reborn as a proud democracy with economic prosperity.

 

 

 

   With regards to our bilateral relations, I would like to first touch upon the strong bond between Korea and Australia that goes back more than half a century when some 17,000 Australian troops fought to defeat the communist attack under the United Nations banner during the Korean War.

 

   Thanks to the valor of these Australian troops including the 339 soldiers who sacrificed their lives to protect freedom and peace, a democratic and prosperous Korea was made possible.

 

   Needless to say, democracy and the market principle, shared by our two countries are the major driving forces that make our partnership strong and unchanging in our commitment for cooperation.

 

   We are now partners, not only for our own sake but also for the peace and prosperity of the region and the world as a whole.

 

   As members of APEC and ASEAN Regional Forum, and as active participants in helping rebuild East Timor and Iraq, our two countries enjoy a partnership that is as close as ever.

 

   And I hope that the day will come when Australia will establish itself as a full-fledged member of the Asian community.

 

   Korea-Australia cooperation with regard to the North Korean nuclear issue and the war against terrorism is proof of our strong ties.

   The Australian government, though not a member of the Six Party Talks, is as dedicated as the member countries to the peaceful solution of North Korea's nuclear issue.

 

   I hope Australia's consistent effort in committing North Korean leaders to reform and opening-up serves as an impetus for change.   Australia's proactive and constructive role in this regard has been evidenced by my counterpart His Excellency Minister Downer's recent visit (August, 17-18) to Pyongyang.

 

   Let me now speak on our close cooperation in combatting terrorism.   I believe we all agree that terrorism is looming as one of the biggest threats to our civilization.   Defeating terrorists is a battle for preserving democratic values and ensuring global security.

 

 

 

   I would like to take this opportunity to commend the Australian government for its unswerving resolve and committment to fighting terrorism.

 

   At the meeting with Minister Downer this morning and over lunch, we reaffirmed our determination to closely cooperate with each other to bring about a world without the fear of terrorism.

 

   It is well known how the Korean government responded to the recent kidnapping and barbaric killing of a Korean national by a terrorist group in Iraq.   The Korean government did not bow to the terrorists' threats but held a firm principle of never compromising with the terrorists.   I am sure that this spirit is shared by the Australian government and people.

 

 

 

 

 

   Finally, I would like to discuss the booming bilateral trade and strong potential for more collaboration between our two economies.

 

   The exchanges and cooperation between the businesses of our two countries in natural resources, electronics, IT and venture capitals have been rapidly expanding.

 

   Korea's exports to Australia are also increasing.   Last year, Korea's export to Australia increased by an estimated 40%, reaching US$3.3 billion, thanks to the good performance of IT products such as computers, mobile phones and motor vehicles.

 

   Australia has now become the eleventh largest export destination for Korea, moving up three ranks from the fourteenth spot in 2002.  

   Australia's exports to Korea are also dynamic.   As a major importer of Australian goods and services, Korea offers an important market, not only for traditional items such as coal and iron ore, but also for the new products in IT and biotechnology as well as business advisory, venture capital and infrastructure financing services.

 

   As a part of its efforts to secure and import as much Australian resources as possible, last year Korea signed a mid-term contract to purchase Australian LNG.

 

(Promoting bilateral cooperation in IT and BT)

 

   I would also like to emphasize the growing potential for cooperation in the IT and BT sectors between our two economies.

 

 

 

   It is well known that Australia has a competitive edge in basic and niche technologies, such as IT and BT in particular, which have yet to be carried into industrial application.

 

   There could be various reasons for such an omission, including the relatively limited size of the market in Australia or some constraints in the industrial culture that favours stable management.

 

   It would therefore be a good idea to promote partnership between Australian companies with niche technologies, and Korean companies with ample experience in industrializing or commercializing technologies, which could certainly bring about an outstanding synergic effect, to our mutual benefit.

 

   I also would like to say that many foreign companies have already adopted Korea as a test bed for new products and production and as a centre for R&D as well.

(expanding of investment)

 

   Let me now touch upon our government's policy to make Korea foreign investment friendly.

 

   Last year, the Korean government introduced bold measures for promoting foreign investment in an effort to develop Korea as an economic hub of Northeast Asia.   Three strategic areas around Incheon, Busan and Gwangyang bay were designated as Free Economic Zones, and more incentive system, including cash grants to some high-tech and R&D investments have been introduced.   I am confident that the business environment in Korea is as competitive as any other countries.

 

 

 

 

 

   I hope that more Australian companies expand investment into the Korean market to make the best of the new opportunities arising from these newly introduced measures.

 

   I am pleased to note that many Australian companies have rapidly increased their investment in Korea with successful results.

 

   For example, Macquarie Bank, one of the brilliant success stories among the FDI in Korea, is now expanding its investment to financing the Social Overhead Capital (SOC) projects.

 

   Holden Motors has also established a strategic base in Korea by acquiring Daewoo Motors.  

 

   TI Automotive based in Adelaide already adopted Korea as a hub of Northeast Asia, by supplying products from its investment in Korea to other countries including Japan.

   Oceanis, a Melbourne company, built and successfully operates an aquarium in Busan, and is planning to expand its investment.

 

   Korea has also been very active in investing in Australia, particularly in the area of resources and commodity development.   POSCO, Korea Zinc in Townsville, SK, LG, and Hansol Paper are among the major investors whose total investments to Australia amount to US$2.6 billion.

 

   The two economies are headed for a partnership of mutual benefit through a very efficient, productive intertwining, not only in manufacturing, commodity development, IT and financial services, but also in tourism, education and other services.

 

 

 

 

 

 

   Distinguished guests, Ladies and gentlemen,

 

   The vigorous exchanges and cooperation we now enjoy are a clear manifestation that our partnership will develop into a much more comprehensive one.

 

   We share invaluable experiences of mutual satisfaction in our friendship and collaboration.   And I am convinced we will continue to be proactive and creative in strengthening the spectacular partnership, which we have been successfully forging.

 

   We have every reason to believe that our partnership will further deepen well into the 21st century.

 

   Thank you.                   /END/