“The New World Order and Korea”

Honorable Heads of State,
World-renowned scholars and representatives of international organizations,
Distinguished Guests,

This year the Republic of Korea celebrates its sixtieth birthday. In Northeast Asian culture, a sixty-year cycle symbolizes one lifetime. This year, therefore, marks the end and the beginning of a cycle for Korea.

And it is at this critical juncture that the new administration took office. I feel a great sense of responsibility to fulfill the mission of our times.

Sixty years may not seem that long compared to the five thousand year history of the Korean people. However, I have no doubt that it has been the most meaningful sixty years in the country’s history, since it has been during this period that the Korean people have fully demonstrated their great potential to the world.

We encountered many obstacles on the path of building our country but we succeeded, reaching the milestone of building a liberal democracy. The country was devastated and so much of what we had was destroyed by the Korean War. However, we defended what mattered most – peace and freedom.

The extraordinary devotion of the Korean people made possible what the world calls the “Miracle on the Han River.” Korea’s per capita income has increased 300 fold and the country experienced a 750 fold increase in its economic scale, to emerge as the 13th largest economy in the world.

As a fledgling democracy, Korea has encountered numerous challenges but, thanks to the strong will of our people, it has successfully emerged as a full-fledged democracy.

And behind the extraordinary accomplishments in industrialization and democratization have been the hard work and perseverance of our people.

And now we are embarking on the journey into the “next sixty years”.
We have committed ourselves to ending division and achieving reunification. We have charted the course of a new Korea – an advanced society based on mutual trust and the rule of law, which is also a respected player on the global stage.

Ladies and Gentlemen,

I would like to stress, however, that the Korean people are well aware that Korea could not have become what it is today without the help received from the international community, including the UN. We fought side by side in the Korean War to defend freedom. Foreign aid and foreign loans saved many Koreans from hunger.

Korea’s remarkable growth in the past sixty years serves as a clear testament that your help and support has paid off.

Now the Republic of Korea is ready to scale up its contribution to the international community to match its national power and international status. Korea aims to join the OECD's Development Assistance Committee (DAC) in 2010, and will seek to gradually increase its level of ODA. Korea is to transform itself from a country that is in desperate need of help into a country that is ready to extend a helping hand. It will no longer be a follower, but a leader.

Korea is determined to play a leading role in addressing the pressing issues of our time, and promoting peace and prosperity in the world.

Distinguished World Leaders,

As you are well aware, the world economy is in big trouble as the real economy is affected by the crisis in the financial sector.
However, I firmly believe that the current crisis can prove to be an opportunity to move forward if nations around the world identify causes and find solutions together, taking collective measures.

The current financial turmoil requires international efforts to find solutions since it is international in its very nature. Rapid globalization has increased not only inter-dependence but also inter-vulnerability.

Talking of that, I am reminded of “the Chain Strategy” adopted at “the Battle of Red Cliff” from “Romance of the Three Kingdoms.” In that strategy, many ships are linked together like a chain to increase defense power. The Chain Strategy worked when there was a favorable wind, but it had adverse side effects when there was an unfavorable one, fanning flames from the enemy.

Since markets are closely linked like a chain in today’s international financial system, we need to heed the lessons learned from the side effects of the ‘Chain Strategy,’ when taking collective measures: while enjoying the benefits of the system, we need to adopt means to cope with negative side effects of an open market economy at an early stage.

To that end, the international community should step up its efforts to raise the transparency and soundness of the financial market.

That is why I emphasized the need for international cooperation and the reorganization of the international financial system at the ASEM Summit held in Beijing last week.

At the summit, I also pointed out that we should prevent nations from slipping back to economic protectionism under the pretext of overcoming the crisis. As you know, the global economic recession only worsened after countries decided to raise protectionist barriers after the Great Depression began in 1929.

International cooperation is also needed to save the real economy from falling into recession, by revitalizing domestic markets through increased fiscal spending.

At the financial crisis summit scheduled in Washington on Nov. 15, I will commit myself to promoting international cooperation on measures to reinvigorate the world economy, including the reorganization of the international financial system.

I will tell the world leaders that a new financial system should be grounded in a culture of sharing and cooperation where emerging economies as well as advanced nations should be active players.

It is my sincere hope that such efforts by the Korean Government will prove of great value in creating a post-crisis paradigm for the world economy.

Honorable World Leaders,

There is no doubt that Korea also is affected by the global financial crisis. But I am confident that the domestic financial sector can overcome this hardship with the sufficient, preemptive, and decisive measures the government is taking. Furthermore, the government has a comprehensive plan to protect the real economy.

First of all, the Korean Government will remove market uncertainty by constantly injecting ample liquidity both in Korean Won and in foreign currencies through the Bank of Korea. And it will also offer payment guarantees for banks borrowing money overseas. In addition to that, extra measures will be taken preemptively whenever necessary.

The Government has decided to expand fiscal spending to expand fiscal spending to boost sluggish domestic demand, as a measure to proactively respond to a potential slump in the real economy. By revising the 2009 budget plan submitted to the National Assembly, the government will scale up investment in social overhead capital and embark on public projects earlier than scheduled.

The Government is determined to stimulate the construction industry and increase support for potential job creators such as small and medium enterprises and the service sectors.

The Korean Government will take every possible measure to protect the livelihoods of low-income families.
We will spare no effort to protect the economy until such time as the crisis is completely resolved.

Honorable World Leaders,
Distinguished Guests,

A challenge more terrifying than the financial crisis is dawning on us – climate change and the resource crisis.

Climate change and the resource crisis is a matter of human survival that requires international collaboration.

The Government of the Republic of Korea will seek to identify a growth engine for the 21st century by actively responding to this issue.

With that in mind, as we celebrate the 60th anniversary of the founding of the Republic of Korea I have put forward “Low Carbon, Green Growth” as Korea’s core strategy for the future.

With the “Low Carbon, Green Growth” strategy, Korea will emerge as a low-carbon economy and its economic and industrial structures will be upgraded, as green technologies — that produce renewable energy, raise energy efficiency and reduce pollution — will lead the economy as new growth engines.

I believe that “Green Growth” will make it possible to create a new growth engine, improve living standards and the environment, and at the same time strengthening international cooperation. And that is a meaningful realization not only for Korea but indeed for the world as a whole.
In particular, green technology, with its tremendous market potential, has a key role to play in overcoming the current financial breakdown and reinvigorating the world economy.
For the development and commercialization of green technology, there is a pressing need for inter-governmental and public-private cooperation. The private sector has a role to play in expanding investment in green technology, based on making use of their entrepreneurship. The government, for its part, needs to create a fair and competitive market environment and infrastructure for green technology to thrive.
Governments around the world need to share new developments in their green technologies with others to promote further technological advances, since no nation can respond to climate change alone and humanity as a whole share the same earth.
In this regard, Korea is committed to cooperating closely with international organizations including the UN, and its members, in identifying initiatives for practical cooperation. We are also interested in playing a valuable role in the efforts to found a new international agency to address climate change and develop green technology. Furthermore, our government is planning to provide full support for NGOs, as their activities are assuming increasing importance on the global stage.

Distinguished Leaders,
Ladies and Gentlemen,

I look forward to hearing from the prestigious leaders present today and would greatly appreciate your full cooperation which will be so crucial in translating these initiatives into reality.

I would simply like to bring these remarks to a close by asking that you all fully share your insights and offer your wisdom in today’s discussions on Korea’s future.

October is when Korea is at its most beautiful.
I encourage you to take the time to enjoy the beauty of this season during your stay in Korea.

I would once again like to extend a warm welcome to the world leaders and experts at this forum and wish you every success.

Thank you.