Ambassador Speeches

Preparing for a New Economic Era

Keynote Address by Ambassador Thomas C. Hubbard
The Heritage Foundation and the Korea-US Exchange Council

Seoul
Friday, February 21, 2003

Ambassador Kim, Dr. Feulner, distinguished guests, friends and colleagues:

Let me begin by offering my sincere condolences, and those of the American people, in this time of Korea's national tragedy and sorrow. Our hearts are heavy when we think of the many lives lost in the tragedy in Taegu, and of the grief and sorrow of their families and friends.

Thank you for your gracious invitation to speak. I know today will be devoted to economic issues, and there will certainly be much to discuss. Korea has built upon a fortunate combination of economic and policy factors that transformed it into one of the most economically developed countries in the world in an astoundingly short period of time. Korea is a dynamic and fast-changing society, which, as it continues on the path of economic reform and opening, will take it into the ranks of the world's top ten economies in the not-too-distant future.

Most of the credit for Korea's economic development goes to the Korean people. South Korea is not rich in natural resources; it has some good agricultural land and some coal, and it now has bulging warehouses of rice and mountains of coal, more than it can use. Korea has long since diversified from basic commodities into the production of modern, high-quality products, and into increasingly sophisticated information technology and service industries. Korea's greatest asset is its people--their work ethic, their dynamism, the importance they place on education, and the unique way they combine individual effort with consensus and cooperation.

I say "most of the credit" is due the Korean people for their current prosperity, because of a simple but undeniable fact. The democratic, dynamic, and prosperous country that is Korea today would not exist if the United States and fifteen other nations of the world had not sent their young men to fight and die here more than fifty years ago.

But while we Americans remember the sacrifices of our young men, let me also emphasize that even greater numbers of young Korean soldiers lost their lives, were wounded, or remain missing to this day, as a result of the bitterly fought conflict. Even now, virtually every young Korean man devotes more than two years of his life to the defense of his country.

In tragic contrast to the bustle and dynamism of the Republic of Korea, North Korea lies dark and almost still, most of its people numb with hunger and cold. They are sustained only by an irrational hatred and fear of the United States, and an equally irrational adulation of their own leadership, both of which they have been taught for decades. The suffering people of the North are the unfortunate victims of a failed state and its sadly misguided priorities.

One of those misguided priorities has prompted the North Korean leadership to embark on a dangerous path, seeking to develop both nuclear weapons and the means to hurl them to distant lands. These actions challenge the security and stability of not only the region, but also the world, and also defy the system of non-proliferation designed to limit the spread of these deadly weapons.

The presence of nuclear weapons on the Korean Peninsula could lead to a destabilizing race by other nations in the region to possess such weapons. Because other nations have much to lose from North Korea's dangerous actions, the challenge to regional and global peace and stability concerns us all, and must be met by a combination of concerned states.

We continue to consult with Korea's neighbors, Japan, Russia, and China, who all agree that the presence of nuclear weapons anywhere on the Peninsula is unacceptable. The Board of Governors of the International Atomic Energy Agency has referred its concerns about North Korea to the United Nations Security Council. Clearly, the international community agrees that North Korea cannot simply walk away from the solemn obligations it has undertaken, nor can it demand or expect any reward for ceasing to do what it should never have begun. For the United States and the international community, North Korea represents a clear proliferation threat, not only because of what it is developing for its own arsenal, but also because of the possibility that it could sell or give weapons of mass destruction to terrorist enemies of the international community.

We want to resolve the issue of North Korea's nuclear weapons program through diplomacy and dialogue. Prudence, however, requires that we keep all options available. We must always remember that you, who have labored so long and hard to make Korea the modern and prosperous country it is today, stand to lose the most, and would be the most immediately and directly affected, in the event of conflict.

President-elect Roh Moo-hyun has stated that the presence of nuclear weapons on the Peninsula is unacceptable, that this issue must be resolved through dialogue, and that Korea must play a leading role. This certainly disproves North Korea's claim that its actions are strictly a bilateral issue between itself and the United States. The Republic of Korea has an important role to play.

We continue to support South Korea's efforts to engage in dialogue with the North. Korea's prosperity, and the deterrence provided by our alliance, provide a sold foundation of stability and security, and allow Korea to deal with the North from a position of strength. The deterrence that our alliance provides is essential, for North Korea has never disavowed its wish to reunite the Peninsula under its sway, just as we have never faltered in assuring that this will not happen. President-elect Roh has acknowledged the need for a continued USFK presence and we welcome that position.

As Korea's new President prepares to take office, let me assure you that the U.S. commitment to defend the security of Korea remains as strong as ever. Of course, our partnership should be as dynamic as the times in which we live. Americans, like Koreans, want a mature and balanced relationship between our two countries - a relationship that meets the needs of the 21st Century and reflects the contributions that each of us can bring to the table in this new era.

Last December, our two defense ministers met and agreed to conduct a joint study on the new challenges and opportunities of this new century. One response to changes in the capabilities of our forces has been for us to consider how to consolidate our bases. We are implementing a Land Partnership Plan, which will return to the Korean government almost half the land that our bases now occupy. Together with the South Korean government, we are also looking at alternative locations for our base in Yongsan.

But our alliance goes beyond the defense of the Republic of Korea. As time goes by, our alliance can and should encompass the promotion and maintenance of regional security as a steadily more important facet of our relationship. In the same vein, our overall relationship goes beyond, and is larger than our military alliance.

Your country and mine have a close and vital economic relationship. We have extensive commercial relations; last year our bilateral trade totaled $60 billion. Korean products are known throughout the U.S. for their combination of quality, utility, and competitive price, and are purchased widely. Once Korea's markets and economy are fully opened, I expect our trade to increase. We invest heavily in each other's economies.

We have strong personal ties. Koreans in America number between one and two million. Whether fourth generation or recent immigrants, Koreans are known for their work ethic, the importance they place on education, and their strong family ties. They have truly enriched us as a nation.

As in all relationships, Korea and America have been through some difficult periods together, and I think we are just emerging from one. In a few short days, Korea will inaugurate its first President elected in the 21st century. We look forward to working with President-elect Roh; from the first time I met him he impressed me with his plain-spoken, commonsense approach to issues.

This time of transition and renewal is a good time for Koreans and Americans to remember why we are important to each other, and to reflect on the common values and principles that we both hold dear, and that serve to bring us together. We have the opportunity to speak frankly, and listen attentively and carefully to each other, as we further strengthen and expand our relationship.

As we celebrate the election of a new President, let us remember that it has always been our ability to stand shoulder to shoulder that has contributed to our many successes as an alliance and as partners.

Today we are indeed on the eve of a new era, and new challenges and uncertainties await us. But we enter this era as friends, and with that friendship - and the marvelous dynamism and synergy that comes from the U.S.-ROK partnership - there is no challenge that we cannot overcome. Thank you.