Lee tells Wall Street investors ‘halt’ in North Korean nuclear program will reduce security risks

NEW YORK — President Lee Jae Myung said during an investor relations event in New York on September 25 that North Korea appears to have already secured enough nuclear arsenal to maintain the survival of its regime and could look next to exporting them. Thus, he said there is a huge security benefit to getting North Korea to halt its nuclear weapons program.

Speaking at the Korea Investment Summit held at the New York Stock Exchange (NYSE), Lee said “South Korea has been undervalued due to the instability caused by inter-Korean military confrontation” and vowed that his administration will “firmly resolve this kind of geopolitical risk.”

In the event attended by Wall Street financial figures and South Korean business leaders, Lee urged investment in the Korean market by laying out measures his government is taking to alleviate instability on the Korean Peninsula.

Lee shared that he had told U.S. President Donald Trump in their summit in Washington last month that “North Korea already appears to have secured enough nuclear weapons necessary for regime survival,” and that only the atmospheric reentry technology remains undeveloped in terms of an intercontinental ballistic missile (ICBM) capable of delivering nuclear warheads to the United States,

“If this is left unchecked, the North will add about 15 to 20 nuclear bombs each year,” Lee added.

He further warned that if North Korea deems it has the nuclear arsenal necessary for regime survival and defense, there is a “high possibility” Pyongyang will export them to other countries.

Thus, he stressed that “halting North Korea’s production of additional nuclear materials, nuclear warheads, and development of more ICBMs, as well as the export of nuclear materials and warheads overseas, provide significant security benefits.”

“Therefore, I proposed halting these activities in the short term, reducing them in the medium term and pursuing denuclearization in the long term,” Lee said.

In his first address at the 80th session of the UN General Assembly on September 23, Lee proposed his so-called “END initiative,” a vision to bring about peace on the Korean Peninsula centered on “exchange,” “normalization” and “denuclearization.”

Lee has called for a three-stage phased approach to denuclearization comprised of freezing, reducing and eventually dismantling Pyongyang’s nuclear weapons program.

Lee has encouraged a resumption of North Korea-U.S., denuclearization dialogue, asking Trump to play the role of “peacemaker” in reviving talks with leader Kim Jong-un, adding Seoul in turn will support this process as the “pacemaker.”

During the investment summit, Lee emphasized that there is no need to be overly concerned about security on the Korean Peninsula, citing South Korea’s own defense capabilities.

“Even excluding the U.S. Forces Korea (USFK), the Republic of Korea ranks fifth in the world based on its own military power,” Lee said. “Compared with North Korea’s annual gross domestic product (GDP), South Korea’s defense spending is nearly 1.5 times greater.”

Lee said regardless of Trump’s request for U.S. allies to increased defense spending, he intends to significantly increase defense spending.

“Shouldn’t a country be responsible for its own defense?” he asked.

Lee also announced his push for a third revision of the Commercial Act aimed at better protecting minority shareholders, stressing plans to “transform the unreasonable decision-making structure of corporations into a truly rational decision-making system.”

He noted through the previous revision of the Commercial Act, he ensured that shareholders can participate fairly in corporate decision-making.

The investor relations event came as Lee promoted his vision of a “KOSPI 5000 era” to Wall Street and encourage investment in South Korea. Earlier, Lee rang the opening bell at the NYSE, signaling the start of a regular trading session at the world’s largest stock exchange.
Citigroup CEO Jane Fraser, Pacific Investment Management CEO Emmanuel Roman, Franklin Templeton CEO Jennifer Johnson, JPMorgan Asset and Wealth Management CEO Mary Erdoes, KKR co-CEO Joseph Bae, Blackstone COO John Gray and Mach Nachmann, head of Goldman Sachs Asset and Wealth Management, were among Wall Street participants.

Lee began a five-day trip to New York on September 22 to attend the UN General Assembly and meet with investors. He will return to Seoul on September 26.

BY SARAH KIM [kim.sarah@joongang.co.kr]