Lee seeks financial summit with leaders of Japan, China

By Yoo Cheong-mo

SEOUL, Oct. 6 (Yonhap) -- President Lee Myung-bak said Monday he will propose a tripartite summit with Japan and China on the sidelines of the Asia-Europe Summit, slated for Oct. 24-25 in Beijing, to discuss concerted countermeasures to the global financial crisis.

Lee unveiled the idea for a "South Korea-China-Japan financial summit" during his
luncheon meeting with Park Hee-tae, chairman of the ruling Grand National Party
(GNP), at the presidential office Cheong Wa Dae, according to GNP spokesman Cha
Myung-jin.
"The president emphasized that the three countries, if united, will be able to
tide the financial crisis, noting East Asia currently holds the world's largest
foreign currency reserves," said the spokesperson.
Lee made a separate proposal last week that the finance ministers of his country,
China and Japan meet to discuss closer policy coordination in the face of the
U.S.-sparked global financial turmoil.
"Asia is the world's economic growth engine. But the U.S.-originated financial
crisis is showing signs of spreading globally and depressing the entire world's
real economy," Lee said last Friday, ordering his ministers to secure maximum
foreign exchange liquidity and disclose all financial and foreign exchange data
to calm market jitters.
In recent weeks, the value of the Korean won has steadily weakened against the
U.S. dollar, plunging to 1,269 won against the greenback on Monday, the weakest
in six years. The crash in the value of the won came amid growing concern over
the nation's shrinking foreign exchange reserves.
In a related move, South Korea, China, Japan and some Southeast Asian countries
are preparing to establish an US$80 billion fund to jointly cope with the global
financial crisis, according to finance ministry officials in Seoul.
Meanwhile, Lee and Park exchanged views on how to accelerate parliamentary
ratification of the long-overdue Korea-U.S. free trade agreement.
"As Lee stressed the FTA with the U.S. would bail South Korea out of its present
economic difficulties, Park responded that his party will strive to have the
National Assembly approve the Korea-U.S. FTA during its ongoing regular session
(set to end Dec. 10)," said spokesman Cha.
"Lee also expected his government to conclude separate FTA talks with India and
the European Union by the end of this year."
Park briefed the president on his party's detailed strategies, including public
relations campaign, for parliamentary approval of the FTA with the U.S. and asked
for greater government efforts to persuade opponents and potential victims to
support the controversial free trade deal.
Earlier on Monday, while meeting with new U.S. ambassador to Korea, Kathleen
Stephens, the president said the FTA would help calm U.S. financial turmoil and
promote economic stability in Northeast Asia.
Seoul and Washington concluded their free trade deal in June last year but have
yet to obtain parliamentary approval. Lee and U.S. President George W. Bush have
agreed to have their respective legislative bodies pass the FTA deal by the end
of this year, but the outlook for ratification remains murky.