NORTHEAST ASIA PEACE AND SECURITY NETWORK ***** SPECIAL REPORT ***** August 17, 1998 The following are excerpts from an address delivered by ROK President Kim Dae-jung on the 50th anniversary of the founding of the Republic of Korea on August 15. Kim called for creating a permanent dialogue body with the DPRK, and for political and economic restructuring of the ROK as part of a "second nation- building." Press reports based on this speech were summarized in the US Section of the August 14 Daily Report. ------------------------------------------------------------ 08-15-98 : Address by President Kim Dae-jung As we mark the 50th anniversary of the Republic of Korea, we are taking the first step on a long journey toward the second nation- building. However, it will not be led by the Government alone. My fellow citizens, you must also lead it by applying your wisdom in everyday work places. It is the only way to succeed. What is second nation-building other than you, as the masters of the country, taking part in national tasks with a sense of responsibility and cooperation to raise national competitiveness to the world's highest level? Let us all join this movement that promises victory for the future. The Government of the People proposes the following six major tasks for the second nation-building. First, we must establish two-way political communication between the people and the government by achieving a great transformation from authoritarian rule to participatory democracy. In particular, in order for the people to take part in policy making willingly, we must alleviate regional antagonism that could ruin the nation. To that end, my administration will maintain a high level of fairness in personnel management and regional development. As President, I respect and care about the people of all our regions. While I am the president of 45 million people, I care for all 70 million people on the peninsula. I firmly pledge that regional discrimination will no longer be tolerated. Furthermore, we will introduce a German-type proportional representation system in order for all political parties and those from all parts of the country to equally partake in national administration. The current high-cost, low-efficiency parliamentary system must also be significantly reformed. As I have already pledged, we will institute a public hearings process to review personnel management. I will also introduce a system of referendums on major local issues in each local government. I believe the nation's press must also make efforts to reform itself. The 21st century will be an age of participatory politics. The opportunity for all people to take part in all areas of national administration must be guaranteed to the greatest extent. This is the basic political objective of the second nation-building. Second, we will do our utmost in undertaking structural reform to enhance the market mechanism in the economy by eliminating government controls. We will resolutely reduce unnecessary government regulations and carry out structural adjustments quickly and effectively in four major sectors--corporate, financial, labor and public sectors. From now on, we will create an environment in which businessmen are well respected and supported if they make profits through efficient management and win in international competition. In addition, we will actively promote exports and foreign investment. To this end, we will boldly expand export financing and enact, within this year, the Foreign Investment Promotion Act. For the second nation-building, we will focus on establishing a knowledge-based economy where the information and leading edge technology play central role. We will foster small and venture businesses with high growth potential to constitute strategic industries. Third, we must establish a new value system based on universalism and globalism, shedding the self-righteous nationalism and other anachronistic ideas. The WTO system that has already been in operation is bound to eliminate economic national borders in a matter of years. We have to compete and cooperate with other countries in order to survive and prosper together with them. It is regrettable, however, that many people in other countries still perceive Korea as less accessible. This is not the way it should be. We have to project a friendly partnership in the international community. A friendly partnership is an essential asset in promoting exports and tourism business as well as inducing foreign capital. In this regard, I will make a sincere effort to prepare for the coming global age by promoting international exchanges and human resource development. Fourth, we have to reinvent our economic system to build a knowledge- and information-based economy, shifting away from the current one based on industrial strengths. The Government will drastically improve standards in science and the information technology which will decide the fate of the nation in the years to come. Given the firm belief that education is the foundation of future success, my Administration is going to phase out the current inefficient education practices in favor of a creative learning system. My philosophy on whole-person education is based on a trilogy of wisdom, virtues and physical health. It is my intention to develop a new college admissions system that is free of years of preparatory cramming--a major financial burden on parents. In conjunction with the new education drive, the government will endeavor to promote culture-related industries that are going to play a central role in the 21st century. The ideal of the second nation-building is to build a country with a strong knowledge base supported by creative and diversified education and rich cultural environment. Fifth, we are now at a historic crossroads where we have to create a constructive labor-management relationship conducive to the new age of harmony and cooperation. It is imperative that we put an end to the confrontation and animosity between two major sectors in society. A relationship of trust based on fair sharing of the burdens is the foundation of the second nation-building. It is my intention to strengthen the employee-stockholder and social security systems which will serve as a testing ground for the fair distribution of national wealth. Labor and management must negotiate a lasting settlement based on reconciliation and cooperation, reflecting other countries' experiences in recent years. Let me take this opportunity to explain the Government's unemployment policy. I assure you that all unemployed will be guaranteed the minimum requirements of food, clothes, medical care and school tuition. Protecting the lives of those citizens who are jobless will be my priority. I believe this kind of Government effort will support the creation of an enlightened labor-management relationship for our new era. Sixth, I intend to promote a new relationship of exchanges and cooperation between the South and the North based on a firm national security posture, overcoming the 50-year confrontation on the Korean Peninsula. In the spirit of the second nation-building, "the Government of the People" will remove the wall of distrust between the two Koreas to promote exchanges and cooperation in accordance with the principles of separating politics and economics. Exchanges will, of course, include cultural and religious events. At this point, it is only proper to remind you of the three basic principles of the Government's North Korea policy: First, we will not tolerate armed provocations of any kind; second, we do not intend to absorb North Korea; and third, we will actively promote exchanges and cooperation between South and North Korea. By consistently maintaining these basic principles, we will be able to minimize the threat of war on the Peninsula and begin laying the foundation for peaceful reunification. I would like to say a few words to the authorities of North Korea. If Koreans are to survive on the Peninsula in the cold realities of today's international politics, both Koreas should open a new chapter of reconciliation, exchanges and cooperation. Let us initiate a good relationship for mutual prosperity and coexistence within the framework of the Agreement on Reconciliation, Nonaggression and Exchanges and Cooperation between the South and North that came into force in 1992. In the spirit of the Basic Agreement, "the Government of the People" is willing to support the stability and development of North Korea. We will support and encourage the Kumgangsan development project and agricultural and other types of economic cooperation. At this point, I should mention that both Koreas have to take steps to achieve reunions of separated families under the spirit of humanitarianism and compatriots. We have to relieve the anguish of those who have been waiting for so long to be reunited with family members. Currently, South and North Korea have numerous issues to discuss with each other. We need to activate the joint commissions in different areas that have already been established in accordance with the Basic Agreement. Even before doing so, however, I would like to propose that the two sides establish a standing dialogue mechanism at the ministerial or vice ministerial-level, which will serve as a useful channel for inter-Korean dialogue. If North Korea agrees, I am ready to dispatch my envoy to P'yongyang to discuss these matters. As I said earlier, developing democracy and a market economy in parallel is the philosophical foundation of the Government of the People. Freedom, justice and efficiency are the guiding principles of my Administration. To recap what I have said so far, the six major tasks of my Administration are to realize: participatory democracy; a market economy; globalism; knowledge- based national power; a cooperative labor-management relationship; and South-North cooperation. Completing these six tasks is the objective of the second nation-building. To develop comprehensive action plans and to implement them effectively, a national movement incorporating all Koreans is essential. To transform our country into an advanced nation under the banner of "Second Nation-building," we need the participation of intellectuals, specialists from all walks of life, and an enlightened public. Fellow citizens, to overcome the national crisis, the country needs your active participation to secure a bright future for generations to come. Let us embark on the task of the second nation-building with unwavering dedication. We will persevere together through pain and joy. As you know, I have struggled all my life for freedom and justice in the nation. My life over the past 40 years was full of difficult challenges and hardships, but I have overcome them. I know I will live up to your expectation to overcome our national hardship. I have utmost confidence in your potential because you have persevered through the trials and tribulations of industrialization and democratization. Furthermore, we have inherited from our forefathers both a fervent desire for learning and a rich cultural heritage. We must harness these qualities to enter the 21st century. I do not intend to be swayed by popularity ratings, although, when I leave the office of the President, I will appreciate a fair evaluation of my record. I am committed to the job of the second nation-building. Together, we will concentrate our efforts on the comprehensive reform of our society during 1998. Then we will fully restore international confidence by the end of 1999, and in the year 2000, we will find ourselves approaching advanced nation status. Let us have hope and courage. As a nation, we can achieve our objectives. The sacred spirit of our fallen patriots will be watching over us--the patriots who gave their lives for national liberation, for democracy, and for the Republic. United hand in hand, let us all rally under the banner of the "Second Nation-building." Let us all take the reigns of our glorious destiny. Then we will be able to pass it on to our children and grandchildren with pride.