Archive for the ‘Announcement’ Category

Korean Foreign Direct Investment Update

Friday, July 9th, 2010

Korean Foreign Direct Investment (FDI) is a complex topic and we are pleased that Kent Wong, Senior Foreign Attorney (Partner) at APEX LLC keeps us updated on recent changes in the law.  We encourage our readers to contact Kent with questions regarding FDI and related issues.

Preparation, etc. of the Methods to Activate Indirect Investment in Real Estate
- Partial Amendment of the Real Estate Investment Company Act -
(Act No. 10269, enforced as of April 15, 2010)

1. Under the amended Real Estate Investment Company Act, the paid-in capital of a real estate investment company (the “REIC”) shall be lowered to not less than 500 million Korean Won (Article 6). Furthermore, the minimum capital of a real estate investment company for which has held a business permit for six months shall be decreased to 7 billion Korean Won inthe case of a self-management REIC and 5 billion Korean Won in the case of a consigned-management REIC (Article 10). Thus, the investment target of the REIC is expected to extend to small and medium-sized real estate and there will be more investment opportunities for real estate development projects.

2. The ratio of public offering of a REIC shall be lowered from not less than 30/100 to not less than 20/100 and the ratio of share ownership restrictions shall be raised from not less than 30/100 to nor less than 35/100 until December 31, 2012 (provisos to Article 14-3 (1) and Article 15 (1)). It is expected that the investment in a REIC is to be activated and the equity with the indirect real estate investment vehicle is to be secured through the reduction of public offering expenses of the REIC and the inducement of institutional investors.

3. Rights in the use of real estate, such as superficies and leasehold rights and beneficiary interests in real estate trust by which all of the properties in trust are reverted to a beneficiary upon termination of the trust shall be added to the property to be invested in kind to the REIC (Article 19 (2)). It is expected that the minimum capital of the REIC will be more easily secured by expanding the scope of property to be invested in kind to the REIC.

4. In the event where the REIC is not able to respond to the call option of shareholders due to lack of funds to purchase the shares, it may postpone the purchase of shares by obtaining the approval of the Minister of Land, Transport and Maritime Affairs (Article 20 (3)). It is expected that stable operation of the REIC will be possible by allowing the REIC to purchase the shares in consideration of its status of funds.

Preparation, etc. of the Method to Expand Assistance to Foreign-Invested Enterprises

- Partial Amendment of the Foreign Investment Promotion Act -
(Act No. 10272, to be enforced as of October 15, 2010)

1. Under the amended Foreign Investment Promotion Act, more land will be subject to private contracts and decrease of rent for foreign-invested enterprises (Article 13). Thus, the land, etc. that has been created under the Urban Development Act or the Act on the Development and Management of Logistics Facilities will be leased or sold on the basis of private contracts, the term of lease will be increased and the rent will be reduced for foreign-invested enterprises.

2. Of the requirements for assistance in cash to foreign investment, the ‘requirement of the foreign invested amount of not less than USD10 million’ was deleted and the scale of full-time research staff shall be lowered from 10 to 5 persons (Article 14-2 (1)). Thus, small-scaled foreign investment will also be able to receive financial support in cash if the effect of such investment can be proved to be of benefit to the national economy.

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Someone asked…So here’s my legal consulting and expert witness CV

Sunday, June 27th, 2010
Don Southerton
CEO, Bridging Culture Worldwide
Services Provided
For cases related to Korean culture and norms, Korean business, Family, IP, and most of Korea’s major conglomerates (including Samsung, Hyundai-Kia Motors, SK, Hanjiin, Hyosung, and LG), we provide strategy, expert opinion testimony, litigation testimony, and case review for Defense and Plaintiff.
Authority on
Korea, Korean global business norms, Korean domestic business, Korean workplace, Korean expatriates, Korean gender, Korean IP, Korean education, Korean cross-cultural issues, US-Korean business relations, Korean technology, Korean FDI, Korean luxury goods and market, Korean real estate development, Korean automotive industry, Korean consumer and service industry.
Experience
Don Southerton is an author, advisor, consultant, strategist, and coach working with many of the top Korean-based global corporations, along with major western firms that have ventures related to Korea.
As an expert witness, Southerton has worked on cases involving wrongful death, international family law, and personal injury. By virtue of his education, experience, training, and skills courts in Illinois, Pennsylvania, and California have accepted his testimony and expertise.
Education
B. A. History. University of Colorado, Denver.

M. A. History. University of Colorado, Denver.

Post Graduate Study
University of Southern California (USC).

University of California at Los Angeles (UCLA).

Intercultural Institute of California, San Francisco (IIC).

University of California, San Diego, Graduate School of International

Relations (UCSD).

A detailed curriculum vitae and fee schedule/agreement will be provided upon request.
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Innovative Korean Internship Program Launched

Saturday, May 1st, 2010

For Immediate Release

Bridging Culture Worldwide launches innovative internship program that recruits outstanding Korean university students and recent graduates for placement with top American firms. The program’s goal is to provide participants with an opportunity to learn about American business while the employers gain access to top talent.

Denver, CO and Seoul, Korea May 1, 2010 Bridging Culture Worldwide http://www.bcwj1visa.com CEO Don Southerton announces the launch of an innovative internship program that recruits outstanding Korean university students and recent graduates then provides placement up to one-year with top American firms. The program’s goal is to provide participants with an opportunity to learn about American business while the employers gain access to top talent. Southerton notes “I’ve has been a longtime supporter of internships. In fact, over the years BCW have sponsored a number of Korean students. BCW was also been highly involved with US and Korea government programs such as Korea WEST.”

Southerton points out that while supporting the Korea WEST program, BCW noted the limitations and restrictions of the program. We believe there is a huge potential for a private sector program that will bring highly skilled young professionals to America under the J-1 Intern Visa. The BCW J-1 Intern Program will target key sectors including: design, fashion, graphics, media, journalism, gaming, film, and legal. Key to the BCW program are some exclusive services. For example these include high quality resumes, interview skills training, and one-on-one mentoring during the program by senior American HR professionals and BCW CEO Don Southerton. Moreover at the completion of the internship BCW will provide career counseling. To best serve participants, BCW has teamed up with a number of partners― all leaders in their field including CIEE (the Council on International Educational Exchange).

For inquires it offering internship position, please contact:
Anna Cash-Mitchell, Director, Employee Relations at support @bridgingculture.com

About Bridging Culture Worldwide http://bcwj1visa.com

Since our founding, Bridging Culture Worldwide has focused on Korea-related business services.  Core businesses include training programs for U.S. and Korea-based firms, coaching and consulting for key executives, cross-cultural team building, market and research, educational publications, and development projects.

Our unique approach is rooted in a deep cultural and historical understanding of Korea, its people, and major industrial groups.  Based on over 30 years of experience, we share cross-cultural insights to global teams and management so they can be more effective.

Today, Bridging Culture Worldwide is globally recognized for providing a wide variety of customized training programs and consulting services to major Korean-based firms operating internationally and Fortune 500 companies with operations in South Korea and Asia.

BCW has locations in Southern California, Denver, Colorado, and Seoul, South Korea.

About CIEhttp://www.ciee.org

CIEE (Council on International Educational Exchange) is the leading U.S. non-governmental international education organization. Established in 1947, CIEE is a world-leader in student exchange services. Each year we sponsor nearly 40,000 students and young professionals as they develop their potential through participation in a wide variety of work and study programs.

CIEE has supported approximately 50,000 Internship and Trainee participants over its 20 plus years as a J-1 program sponsor. The knowledge and experience accumulated over this time, along with an enduring commitment to quality, have allowed CIEE to remain the largest J-1 sponsor in this category and an overall leader in program administration.

For U.S. students, CIEE also operates over one hundred study programs in roughly 40 countries around the world. We offer programs at 10 different sites in Asia, including our program in Seoul based at Yonsei University.

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Korea Legal.org Update

Sunday, April 18th, 2010

By Don Southerton, Korea Legal.org Editor

The site continues to draw lots of interest. We’re asking top experts to contribute  and share their perspective. Look for timely posting on a number of Korea-related legal and business issues.

Interested in contributing?

Please contact me at dsoutherton@bridgingculture.com

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More Korean Legal Resources

Saturday, February 20th, 2010

Hello,  all.  I’m Andrew Barbour, and I’m a Connecticut-licensed attorney working for one of Korea’s larger general trading firms here in  Seoul.  Don was good enough to  entrust me with an admin account, but I’ve been mostly dormant except for a few comments on previous posts.  However, the last post on Korean Legal Resources reminded me that I have a decent collection of Korean law and government links that might be worth sharing.  So here are a few to begin with. This is by no means a comprehensive list–if you have suggestions, please mention links in the comments, and we’ll update this list as soon as possible.

NB: Many (if not most) Korean websites have reduced functionality in browsers other than Internet Explorer, so if the page isn’t cooperating, give IE a shot.

Law Firms:

Shin & Kim http://www.shinkim.com

Yoon Yang Kim Shin & Yu http://www.yoonpartners.co.kr/

First Law Lee & Ko http://www.firstlaw.co.kr/

Sojong Partners http://www.sojong.com/

Wonjon Intellectual Property Law Firm http://www.wonjon.com/

Barun Law http://www.barunlaw.com/

Hwang Mok Park http://www.hmpj.com/

Kim Chang Lee http://www.kimchanglee.co.kr/

Ahnse Law Offices http://www.ahnse.com/

Kim & Chang http://www.kimchang.com/

Bae Kim & Lee http://www.baekimlee.com/

Law Firm Pureun http://www.pureunlaw.com/

Yulchon http://www.yulchon.com/

Saegil Law Firm http://www.saegillaw.co.kr/

LOGOS law http://www.lawlogos.com/

Government Agencies:

MOLEG (Ministry of Government Legislation) http://www.moleg.go.kr

KIPO (Korean Intellectual Property Office) http://www.kipo.go.kr/

KOTRA (Korea Trade-Investment Promotion Agency) http://www.kotra.or.kr/

National Assembly of the Republic of Korea http://korea.assembly.go.kr/index.jsp

National Assembly Library http://www.nanet.go.kr/english/

NHIC (National Health Insurance Corporation) http://www.nhic.or.kr/

Foreign Investment:

Invest Korea http://www.investkorea.org/

Invest Korea Journal http://www.ikjournal.com/

FEZ (Free Economic Zones Korea) http://www.fez.go.kr/

Gyeonggi Province Office of Investment http://www.invest.go.kr

BJFEZ (Busan-Jinhae Free Economic Zone Authority) http://eng.bjfez.net/

Busan Ports Authority http://www.pba.or.kr/

Miscellaneous:

Seoul Bar Association http://www.seoulbar.or.kr/

Korean Bar Association http://www.koreanbar.or.kr/

법률신문 (Law Times) Korean-only http://www.lawtimes.co.kr/

Journal of Korean Law (Seoul National University Law Research Institute) http://www.snujkl.org/

KIPRIS (Korean Intellectual Property Rights Information Service) http://eng.kipris.or.kr/

KFIA (Korean Financial Investment Association; formerly “Korean Securities Dealers Association”) http://www.ksda.or.kr/english/eng_index.cfm

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University of Washington Korean Legal Research

Wednesday, February 17th, 2010

By Don Southerton, Korea Legal.org Editor
One goal of Korea Legal.org is to share resources. This UW site  is a great source of information. UW has long been a center for Korean studies in the West.

한국법학연구지침


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Korea Legal 2010

Saturday, January 9th, 2010

By Don Southerton, Korea Legal Editor

It’s a new year. In 2010, we’ll be asking top experts to contibute to this Blog. Look for timely posting on a number of Korea-related legal and business issues.

I’ve also renamed the site to reflect it’s evolving scope.

Interested in contributing?

Please contact me at dsoutherton@bridgingculture.com

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Happy Holidays 2009

Monday, December 21st, 2009

sae Happy Holidays 2009
As the holidays approach, you may wish to greet your Korean colleagues with:
Sae hae bok man i ba deu say yo! (Season’s Greetings)

(I will modify the Romanization for easier pronunciation).
Hint: Break the greeting into: sae hae bok—mah ne—bah deu say yo

In South Korea, the government recognizes Christmas December 25 as a public holiday. Christians, who make up about 30% of the population, celebrate the occasion as a religious holiday.

Like in the West, both Christians and non-Christians may engage in some holiday customs such as gift-giving, sending Christmas cards, and setting up decorated trees in their homes.

Each year I see more signs of commercialism in Korea with stores and buildings displaying Christmas decorations and offering holiday sales. What may surprise some is that public and company Christmas trees and decoration stay up way past the holiday. In fact, many stay in place to the Lunar New Year.

Sae hae bok man i ba deu say yo! works well and is a common seasonal greeting. For those wanting to wish someone Merry Christmas use Sung tan jul chuk ha.

If you have a specific holiday question, please feel to contact us by email.

On behalf of myself and Korea Expert Witness, have a happy holiday season!

Sae hae bok man i ba deu say yo!

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New BCW Korean Coaching and Training Options Control Costs

Sunday, July 26th, 2009

m1 New BCW Korean Coaching and Training Options Control CostsGood News. Rising travel cost and demanding work schedules no longer need limit your team from better understanding Korean global business, workplace norms, practices and expectations.

Bridging Culture Worldwide virtual training (VT) has been offered for over three years. We have now expanded this service. The system gives BCW the ability to offer Web and phone based cross-cultural training and coaching across you and your organization.

There are a number of VT options. Since needs vary, we would be happy to discuss which will work best for you and your organization.

I look forward your thoughts and suggestions. I am sure you and the team will be pleased with the BCW training and coaching programs.

Call +1-310-866-3777
or contact us at Dsoutherton@bridgingculture.com

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North Korea Policy and Stephen Bosworth Remarks at Korea Society Annual Diner

Wednesday, June 10th, 2009

Stephen W. Bosworth

Stephen W. Bosworth

By Don Southerton, Editor and Chief Blogger

I feel Stephen Bosworth’s keynote speech at the Korea Society’s annual diner gives us deep insights into the current U.S. policy and mindset towards North Korea. His talk touched on Japan, China, and of course North Korea. Significantly, Bosworth  covered topics President Obama and ROK leader Lee Myung Bak will certainly discuss in their upcoming DC visit.

I was happy the ambassador stressed the importance of the Korea WEST internship program. I am a strong supporter of WEST and with so many leaders of Korean-based business in the audience –including 2009 James A. Van Fleet honoree and Hyundai-Kia Group Chairman Chung Mong Koo–I hope many take action.

Remarks at the Korea Society Annual Dinner
Stephen W. Bosworth
Special Representative for North Korea Policy
The Korea Society Annual Dinner
June 9, 2009

Thank you for inviting me to speak here tonight, and thank you, Evans [Revere], for your kind introduction. I am honored to be here with my favorite boss, the Honorable Dr. Henry Kissinger, the Honorable Governor Sonny Perdue [Georgia], the Honorable Governor Bob Riley [Alabama], His Excellency Ambassador Kyung-Keun Kim, His Excellency Ambassador In-kook Park, and Mr. Chong Mong-Koo, Chairman of [Hyundai]-Kia Automotive Group. I would like to acknowledge the Korea Society for the wonderful work they have done throughout their history in fulfilling their goal of promoting greater awareness, understanding, and cooperation between the people of the United States and Korea.

The past few weeks have seen a tremendous amount of action on North Korean issues, including the April 5 Taepo-dong 2 launch and resulting UN Security Council action and the May 25 nuclear test and additional missile launches, which will be followed again by a unified response again from the UN Security Council. In addition, two American journalists have been detained in North Korea for several weeks and have even been sentenced to imprisonment. We urge the DPRK to release these young women on humanitarian grounds.

Before we focus on the current situation in North Korea, I would like to look briefly at the East Asia region as a whole, highlighting the close cooperation of the United States, the Republic of Korea, Japan, China, and Russia as we work together towards the common goal of a denuclearized Korean Peninsula. In my remarks this evening, I would like to expand on the importance of our relations with our two alliance partners, the Republic of Korea and Japan, and with China and Russia; to comment on the current situation in North Korea; and to lay out a vision for a Northeast Asia that is at once peaceful, prosperous, cooperative, and secure.

In the twentieth century George Kennan identified Northeast Asia, together with Western Europe, as the two regions of primary geopolitical importance for the United States. Kennan’s observation about Northeast Asia seems increasingly prescient in the Twenty-First Century. Just as events in Europe greatly influenced global developments in the world in the Twentieth Century, so we look to Asia as a harbinger of what the Twenty-First Century will bring. With sixty percent of the world’s population, the world’s second and third largest national economies and an increasing percentage of global trade, Asia has evolved over the past few decades into a strategic center point, both economically and geopolitically.

For reasons of history and national interest, the United States regards itself as a resident power in East Asia. Our interests in the region are permanent and profound. They center on our relations with our two alliance partners, the Republic of Korea and Japan, and, increasingly, with China. Our relationships with South Korea and Japan both began with formal military alliances, which continue to serve as a foundation for increasingly expansive bilateral ties. Both alliances have evolved, based on shared values, to encompass a wide range of issues, including a common commitment to political freedom, economic prosperity, and regional and global cooperation.

Republic of Korea

Let me start with the Republic of Korea. Our relationship with South Korea was strong when I was the U.S. Ambassador in Seoul. It has grown stronger still over the past decade. And our close cooperation with South Korea, demonstrated again over the past few weeks, exemplifies how the security relationship between our two countries continues to anchor our broader bilateral ties. What began with a stronger nation protecting a weaker one has evolved dramatically, a sophisticated economy as South Korea has become a developed country with a highly capable military and a global strategic perspective.

Our military alliance is now a more balanced partnership, with the ROK military ready to assume primary responsibility for South Korean defense. In 2012 South Korea will assume wartime operational control of its troops, a significant step that demonstrates our true partnership. Working in concert with our partners in Seoul, we are realigning our troops, consolidating our bases, and shifting command responsibility to the ROK’s armed forces while enhancing our capacity to defend the Peninsula in time of crisis. Our mutual goal is for the United States to field a more tailored force, with a smaller footprint that creates less of an impact on ROK civilians, but which still provides the deterrent necessary to maintain peace on the peninsula. We are in the process of relocating U.S. military bases away from the centers of large cities and fielding a leaner, more flexible fighting force.

It is worth noting that the U.S. – ROK Alliance has matured to the point where we are equally concerned with working together to provide to others the security our countries have enjoyed for the last fifty years. U.S. and Korean forces have worked side by side in international peacekeeping and military operations in Lebanon, Iraq, and Afghanistan. An ROK warship is working with U.S. and other like-minded nations to prevent piracy in international waters off the Horn of Africa. That we are able to look beyond our own security needs is a mark of the maturity and increasingly global nature of our alliance.

Our political alliance with the Republic of Korea is strongly buttressed by our growing economic ties. To that end, in 2007 the U.S. and Korea concluded negotiations for a free trade agreement. Recognizing that a sound free trade agreement could offer benefits to both countries, President Obama and President Lee committed to working together to chart a way forward at their meeting in London on April 2.

Most important are the strong ties between the people of the United States and the people of the Republic of Korea. More than 100,000 students from Korea enrich American classrooms each year. This makes them the largest group of foreign students studying in the United States [Tufts and Fletcher]. To encourage more students to take part in similar experiences, last year the Governments of our two countries signed a Memorandum of Understanding on the WEST program. WEST – Work, English Study, Travel – allows Korean young people to come to the United States to study English, work at a professional internship, and travel on a single visa. Nearly 200 Korean students and recent graduates are currently in the United States taking advantage of this opportunity.

A small, but increasing number of Americans are choosing to study in Korea. The State Department now offers grants for students from the secondary through post-graduate levels to study Korean. The Fulbright Program offers recent college graduates the opportunity to teach English abroad for a year in select countries through its English Teaching Assistant Program. The program in South Korea has been the most successful in East Asia. Alumni of this program and others like it are part of a growing cadre of the next generation U.S. – Korea studies experts. In another important development beginning January of this year, Koreans were permitted to travel to the United States under the Visa Waiver Program which allows South Korean citizens who enter the U.S. for personal travel or business to stay up to 90 days without a visa.

When Presidents Lee and Obama meet next week, they will chart a vision for a U.S. – ROK relationship that is based on strong bilateral cooperation, but aims to expand cooperation to address challenges around the globe ranging from the global financial crisis to combating global climate change.

Japan

Likewise, nearly fifty years have passed since the United States and Japan signed the Treaty on Mutual Cooperation and Security, the foundation of our strategic alliance, in 1960. We share a strong and vital relationship based on shared interests, values, and a common vision for the future. As the leading democracies and economies in the world, the United States and Japan have shared interests that cut across a range of difficult issues. From our shared commitment to peace and stability in the Asia – Pacific region to our efforts to push for economic growth in the midst of a worldwide financial crisis, and from our work to counter the scourge of terrorism to our shared interest in mitigating the impact of climate change, it is clear that the issues that face us today are more global in nature than ever before.

These transnational issues cannot be resolved by the United States or Japan alone, nor even by the international community that does not include leadership from both the United States and Japan. The U.S. – Japan alliance continues to evolve to adapt to the global nature of these challenging issues. We are strengthening communication, collaboration, and coordination between our two nations and others. Japanese support to Operation Enduring Freedom has been important to the coalition mission in Afghanistan. Japan’s dispatch of two Maritime Self Defense Force vessels to the Gulf of Aden is an important step in the fight against piracy. Of course, the United States continues to strongly support Japan’s efforts to ascertain the fate of its missing citizens who were abducted by the North Koreans.

China

As China has become a global economic power, its political and diplomatic influence increased as well. It is one of the five permanent members of the UN Security Council, and is a key member of vital regional and international institutions: APEC, the ASEAN Regional Forum (ARF), the G-20, the WTO, and the Nuclear Suppliers Group. Accordingly, the importance of United States – China relations continues to increase as well. When President Richard Nixon (and Secretary Kissinger) made their historic visit to China in February 1972, it would have been hard to imagine the breadth and depth of issues that we now discuss bilaterally with China on a regular basis.

The Obama administration is determined to grow and build a positive, cooperative relationship that reflects the increasingly complex and comprehensive nature of our relations with China. We currently convene over fifty bilateral dialogues and working groups spanning subjects from aviation to counterterrorism, to food safety and non-proliferation. When President Obama met with President Hu Jintao on the margins of the G20 summit in London in April, they agreed to seek to build positive, cooperative and comprehensive relations. Many of the major challenges facing the world today cannot be successfully addressed without the involvement and assistance of China. We are planning to launch the Strategic and Economic Dialogue in Washington this July in order to maximize opportunities for bilateral cooperation that can be better revealed by a strategic, whole of government approach to the relationship. Secretary Clinton’s February visit to Beijing and Treasury Secretary Geithner’s visit last week helped lay the groundwork for this new dialogue, which will be based on mutual respect, cooperation and a long-term perspective.

North Korea

Against the backdrop of a prosperous and dynamic region, North Korea presents a stark contrast. President Obama came into office committed to a willingness to talk directly to countries with which we have differences and to try to resolve those differences. This commitment to dialogue was communicated directly to North Korea in the President’s first days in office. Since then the Administration has repeatedly signaled a desire to pick up on the progress made by the Six-Party process, to continue bilateral dialogue and to work toward denuclearization and a normal relationship with North Korea. To date, we have had absolutely no positive response to these signals.

In fact, North Korea’s actions and statements run directly counter to the objective of regional peace and security. They have renounced their Six-Party commitments to the disablement of their nuclear program and, through their missile and nuclear tests, have defied the UN Security Council, and violated the provision of UN Security Council Resolution 1718. As President Obama said in response to the May 25 nuclear test, “North Korea is directly and recklessly challenging the international community.” This is a challenge that the international community must meet. We call on the DPRK, therefore, to refrain from further provocative actions, to uphold its commitments, and to abide by its international obligations. North Korea will not find international acceptance unless it abandons its pursuit of weapons of mass destruction and their means of delivery.

Last week I participated in an interagency trip, led by Deputy Secretary of State James Steinberg, to consult with our Asian partners in response to North Korea’s recent statements and actions. Our discussions were very productive and reinforced our unity and coordination with our allies and partners in dealing with the challenges coming from North Korea. North Korea’s nuclear threat is not a problem for the United States alone. It is a threat to the ROK, Japan, China, Russia, and the broader international community. Therefore, we must all be a part of the solution aimed at maintaining peace and establishing lasting stability in the region.

We have also conducted intensive consultations here in New York at the UN Security Council. Discussions at the United Nations are ongoing, and Ambassador Rice continues to work with her colleagues in the Security Council to craft a strong, unequivocal, and unified response to North Korea’s violation of its obligations under a binding Security Council resolution, which we have all agreed is required.

The United States shares with our allies, the Republic of Korea and Japan, and with China and Russia a fundamental interest in improving security and stability in the region through the denuclearization of the Korean Peninsula. This basic goal of the United States, the complete and verifiable denuclearization of the Korean peninsula, remains unchanged. I cannot envision a situation in which we would modify that goal.

North Korea has announced its withdrawal from the Six-Party Talks, but we and the other participants in the talks are committed to work through the Six-Party process to implement the principles of the September 2005 Joint Statement. Notwithstanding North Korea’s recent actions, we and our partners in the talks remain open to meaningful dialogue and serious negotiations. As we have indicated to Pyongyang, the United States also remain open to bilateral dialogue and negotiations as part of the multilateral effort. North Korea’s recent actions to develop a nuclear and intercontinental ballistic missile capacity require that we expand our consideration of new responses, including our force posture and extended deterrence options. However, the North Korea claim to be responding to a “threat” or a “hostile policy” by the United States is simply groundless. Quite to the contrary, we have no intention to invade North Korea or change its regime through force, and we have made this clear to the DPRK repeatedly. We are convinced that negotiation and dialogue are the best means to achieve the goal of complete and verifiable denuclearization of the Korean Peninsula. Future negotiations, however, need to establish the irreversible steps that North Korea must take to go beyond the impermanent disablement actions previously taken. In short, we remain ready for serious negotiations with the North Koreans.

Though denuclearization is vital and remains our prime and most necessary objective, it should not be the exclusive focus of our talks. North Korea should be shown a clear path towards acceptance in the international community. In joining the international community, North Korea must live up to international standards, particularly with regards to respecting the human rights of its own people.

The Northeast Asia of the future will include a denuclearized North Korea, a peace regime on the Korean Peninsula to replace the Armistice of 1953 and normal, interlocking relations among all countries, including the DPRK and the United States. It should be a region of open borders and a free flow of communication, ideas, and travelers. No nuclear weapons will threaten the region, and economic cooperation and integration will provide all with opportunities for prosperity.

Before North Korea began backing away from its commitments and then taking a series of provocative actions, the Six-Party Talks had made progress toward achieving this vision. It provided a platform for engagement and dialogue that helps to build mutual trust and understanding. Each member of the Six-Party process was able to raise issues of concern and seek common ground. Each of us will continue to have differences and disagreements with North Korea, but we all understand that negotiation and dialogue are the best tools to solve them. Building a foundation of mutual trust and transparency will facilitate continued growth and prosperity in the region and make it possible for the people of North Korea to share in it. By continuing to threaten and alienate its neighbors, North Korea will deny itself the security and respect it claims to be seeking. For our part, the United States will of course do what we must to provide for our own security and that of our allies. It is North Korea that faces fundamental choices. It can remain in the darkness of its cave and see the world only as shadows on the wall. Or, it can come out into the light and join the international community. We will welcome the day when North Korea chooses to come out of its cave, and we will be prepared to receive them.

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