Remarks by Ambassador Thomas C.
Hubbard
As Prepared for Delivery
The Korea Chamber of Commerce and
Industry
Lotte
Hotel
March 17, 2003
Thank you, Chairman Park, Director Lee, and members of KCCI, for inviting me here today.
One of my important roles as Ambassador is to expand opportunities for trade and investment between the U.S. and Korea, and I take that role very seriously. In that context, my relationship with the Korean business community is an important component of my job.
But I have a number of other roles, including helping to manage a very complex relationship between the U.S. and Korea, about which I'd like to say a few things today. But before I do so, let me say a few words about Korea's economy, the threat North Korea poses to South Korean prosperity and regional stability, and U.S.-Korea security and commercial ties.
The Republic of Korea, through a fortunate combination of economic and policy factors, and the hard work, dedication, and determination of people like all of you, has transformed itself in a remarkably short period of time into a thriving democracy, with a successful economy and a high standard of living. As friends of Korea, we Americans greatly welcome and admire that success. Korea is a dynamic and fast-changing society, which, as it continues on the path of economic reform and opening -- and it must continue because there is still work to done -- could take it into the ranks of the world's most advanced economies in the not-too-distant future.
Korea's economic development, and its transition to democracy, have been facilitated by the long-standing defensive alliance between Korea and the U.S. Like all long-term relationships, ours has had its share of ups and downs, and like all healthy relationships, it is constantly evolving. But let's be clear: the United States' commitment to help defend Korea remains a vital factor in regional security. That commitment still stands.
You know better than I that Korea's economy has long since diversified away from low-cost, low-quality goods into the production of modern and increasingly sophisticated information technology and high-tech products and services. Korea's greatest asset is people -- your work ethic, your dynamism, the importance you place on education, and the unique way your society combines individual effort with consensus and cooperation.
In tragic contrast to the hustle and bustle of the Republic of Korea, North Korea lies dark and nearly dormant, most of its people numb with hunger and cold. They seem to be sustained only by an irrational fear of the United States, and an equally irrational adulation of their own leadership, both of which they have been taught for decades in complete isolation from the rest of the world. Clearly, the suffering people of the North are the unfortunate victims of a state with sadly misguided priorities.
One of those misguided priorities has prompted the North Korean leadership to embark on a dangerous path, seeking to develop nuclear weapons and also the means to deliver them to distant lands. These actions challenge the security and stability not only of South Korea and the region, but the entire world, and also defy the international system of non-proliferation designed to limit the spread of those deadly weapons.
Because other nations have much to lose from North Korea's dangerous actions, they must be met by a combination of concerned countries. That's why the United States has emphasized the need for a multilateral approach to resolving this issue.
Recent events -- such as the restart of the Yongbyon nuclear reactor and the North Korean interception of a U.S. reconnaissance aircraft in international airspace -- lend even greater urgency to finding an effective approach to dealing with the North's worrisome behavior.
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.
Unmistakably, 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 its own development of weapons of mass destruction, but also because of the possibility that it could sell or give such weapons to terrorist enemies of the international community.
President Bush has stated repeatedly that his aim is to solve the North Korean nuclear issue peacefully through multilateral diplomacy. He underscored that point during a phone conversation with President Roh Moo-hyun a few days ago. In that conversation and during Secretary of State Powell's recent visit to Korea to attend President Roh's inauguration, the U.S. and Korea reaffirmed our alliance's importance and vitality. Our two countries agreed to stand together in addressing North Korea's nuclear development programs and its proliferation of missiles. Secretary Powell also stated that the U.S. would continue to provide food aid to the people of the North through the UN World Food Program.
As we explore ways to resolve the challenge posed by North Korea, we are mindful that the Republic of Korea bears the brunt of Pyongyang's threat and would have the most to lose if war were to break out again on the Peninsula. That's why we all agree that this issue can and should be resolved peacefully and through diplomacy, even as prudence demands that we keep all our options open.
As Korea's new President settles into 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 nation's citizens can bring to the table in this new era. I believe that we already have a mature relationship with Korea. However, some in Korea have expressed concerns -- without being specific -- about the fairness and equality of our relationship. Accordingly, one of my current goals is to seek a clearer understanding of these concerns and address them as best we can.
Earlier I mentioned that our bilateral relationship is constantly evolving. Let me give you an example. Last December, our two defense ministers agreed to conduct a joint study on the new challenges and opportunities that our military alliance will face in this new century. One of these challenges is the changing environment, including increased urbanization, in which our forces train in Korea. Earlier this week, I witnessed first hand how crowded the area is North of Seoul in which the U.S. 2d Infantry Division lives and trains. The population density and development in this area has increased significantly over the years, resulting in discomfort, difficulty, and, when accidents happen, greater danger to the residents who live there and the U.S. forces there to protect them. This has prompted us to explore how best to reduce our base footprint and rationalize our base presence. To do so, 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 let's remember that our alliance is a multifaceted one which goes beyond the defense of the Republic of Korea. As time goes by, our alliance can and should promote and maintain regional security as a steadily more important aspect of our ties.
Our relationship also goes beyond the military dimension. Korea and the United States have a close and vital economic relationship. A strong, vibrant Korean economy is important to U.S. interests, just as an expanding U.S. economy and an open U.S. market are important to Korean businesses.
Both our nations have a common appreciation of the benefits of free trade. Korea has become an economic powerhouse, and Koreans -- like Americans, Europeans and other members of the global trade community -- understand why open markets and the free flow of goods and services are essential.
Although Korea has accomplished a great deal in the areas of economic and financial reform over the last several years, more remains to be done. Korea must continue to reform, restructure, and improve if it is to strengthen its position in this intensely competitive global economy. President Roh's evolving hub concept recognizes this, and the U.S. welcomes the new administration's pledge to play a larger role in the regional economy while accelerating the momentum of reform. Such reform will be essential to the success of the hub concept.
Another facet of our relationship is the investment that each of our countries makes in the other's economy. Last year, the U.S. was the leading foreign investor in Korea. However, the level of foreign direct investment in Korea has been decreasing over the last several years. To stimulate investment, Korea should do more to continue the deregulation process and create a better business environment that foreign investors will find attractive. President Roh's comments about foreign investment during the campaign, including his positive words about the GM purchase of Daewoo Motors, were particularly encouraging.
The United States and Korea remain important trading partners. Last year in 2002, the U.S. Commerce Department figures show that the U.S. had $22 billion in exports to Korea while importing $35 billion of Korean products. For the first time, last year Korea exported more to China than to the U.S. If current trends continue, China may seriously challenge the U.S. position as Korea's largest trade partner. Despite this development, the Korea-U.S. trade relationship will remain a critical element of our partnership.
Korea remains the sixth-largest market for U.S. exports. It is our fifth-largest market for high technology products, and the fourth-largest market for agricultural and food products.
Once Korea's markets and economy are fully opened, I expect our trade to increase and to be more balanced. Extreme disparities in trade in certain sectors, such as automobiles, have been exacerbated by policies and attitudes that Korean industry frankly no longer needs.
Our bilateral relations have an important personal dimension as well. We are now celebrating the centennial of Korean immigration to the U.S. 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.
What of the future of relations between Korea and the United States? Although the past year has been a difficult one in some respects, our alliance remains fundamentally strong, and, in the face of new threats from North Korea, is more important than ever.
Perhaps the most important task today for Koreans and Americans is for both nations to take stock of our partnership to ensure that we all perceive it as balanced and fair. In doing so, both Korea and the U.S. should look squarely to the future and keep in mind that what binds our two nations together is our shared stake and belief in democracy, market economies, and the need to maintain peace in the face of the challenges we face today.
The U.S.-Korea relationship is evolving, as it must to remain successful. The United States is changing, the international environment is changing, and Korea, too, is changing. But as we all face these transformations, and as we look to the future of our relationship, I know that we will continue to find that there is much more that binds us together than there are things that divide us.
While Korea is undergoing a demographic shift, I would suggest that all
Koreans, regardless of their age, have a stake in democracy, peace, and
prosperity, and that it is those things which will serve as the glue that keeps
our partnership together and strong. I am confident that the future will find
our relationship -- our partnership -- on solid ground and fully capable of
facing whatever challenges the future may bring.
As you know, and as you can tell from my remarks today, I'm an optimist. I
think the long-term trends in our relationship are good. But there remains much
work to be done by both partners. As I continue to work to strengthen our
alliance, I know that you, the members of KCCI, will join me in supporting
mutual understanding and respect during this period of great change. Thank you.