(Photo : President Lee, right, having an interview with the Financial Times at Cheonog Wa Dae)
 

At the upcoming G20 summit in London, Korea will resist all forms of protectionism to the level that the G20 leaders agreed upon in the Washington D.C. summit last November, and call for the WTO to release regularly the names of the member states that are seeking protectionist measures, President Lee Myung-bak said in an interview with The Financial Times, Sunday (Mar. 29).
Since Lee proposed resistance to protectionism at the Washington G20 meeting last November, the G20 members have encountered a lot of difficulties in the financial sector, President Lee said.

Lee also said the WTO recently released a report which shows that many countries were clearly engaging in some sort of protectionist measures.

As to the concerns that smaller companies may go bankrupt following the worsening economy, President Lee said that Korean companies are doing relatively well.

What is good for Koreans is that Korean companies have diversified their markets, Lee said.

"We have markets all over the world and the products we export have become much more diversified. So quite contrary to our initial projections, our export market is quickly stabilizing."
 

The government has no power to do anything with the exchange rates, but Korean products have a competitive edge that didn''t exist in the past, which is why Korean exports are doing well, Lee said.

Lee explained that in January his country''s exports plunged by 33 percent, but by only 18 percent in February, adding this would narrow slightly to 17 percent in March.

The President challenged claims about Korea''s banking system being overleveraged. He said the country''s regulatory structure and regime have been very much strengthened as can be seen with new rules and regulations, including a cap on excessive borrowing.

As to the looming threat of a missile launch by North Korea, the President said taking a harder stance would not necessarily be helpful in achieving South Korea''s ultimate goal – to convince North Korea to give up its nuclear weapons and usher in an era in which the two Koreas will coexist. He said he was not considering extreme measures, such as closing the Gaeseong Industrial Complex, which he considers “one conduit” for inter-Korean dialogue.

Lee also said he does not believe there is any relationship between inter-Korean tension and the North Korean nuclear program.

Lee said his administration has been always been open and ready to have dialogue with the North Koreans.

When it comes to humanitarian aid, regardless of other factors, it has always been his consistent position that South Korea is ready and willing to offer such assistance, Lee further explained.