I. Important Milestones Achieved

1.The establishment of favorable North-South relations based on fundamental principles.

This administration has been consistent in its efforts to promote "an Inter-Korea policy based on fundamental principles" and one which reflects the demands of the people.

• The Vision 3000 Initiative was promulgated to induce and expedite the denuclearization of North Korea, and hereupon the "New Peace Initiative for the Korean Peninsula" and the "Grand Bargain Initiative" were proposed.
• Seeking progress towards a sustainable North-South relationship based on mutual respect and benefits.
• Seeking sincere and genuine dialogue and cooperation while placing emphasis on universal values such as human rights.

  * The continuation of purely humanitarian aid regardless of the political climate.

This administration has aimed to remain flexible in its approach towards improving relations with the North, employing various means, including proposing to hold dialogue and providing humanitarian assistance to the North.

• This administration has aimed to remain flexible in its approach towards improving relations with the North, employing various means, including proposing to hold dialogue and providing humanitarian assistance to the North.
• To this end, the government has proposed the establishment of a permanent office for dialogue between the two Koreas (April 17,2008 and January 4, 2010)

"I sincerely hope that we are able to open our hearts and discuss how the North can abandon its nuclear weapons." (Independence Day Address on August 15, 2009)

However, since the inauguration of the current administration, the North unilaterally suspended dialogue and has since continued its hard line policy that includes slandering and threatening the South.

• March 2008 saw the suspension of dialogue between the two Koreas. In July 2008, a South Korean tourist was fatally shot at Mount Geumgang. In November 2008, the direct telephone line between the North and South was disconnected. In December 2008, an overland travel restriction to the North was imposed.
• In March 2009, the military hot line was disconnected and ground traffic halted. March 2009 also saw the detention of South Korean workers in the North. In April 2009, the North tested a long range missile and the next month they conducted a second nuclear test. In November of the same year, the battle of Deacheong Island occurred.
• In March 2010, the South's Cheonan warship was sunk during routine maneuvers. In November of the same year, the North shelled Yeonpyeong Island following routine exercises by Southern vessels in the area.

This administration has dealt with the North's armed provocations decisively as follows

• Drawing up plans for clear and decisive actions against North's provocations such as the sinking of the Cheonan warship and the artillery attack on Yeonpyeong Island
• Demanding the condemnation of armed provocations and suspension of inter-Korean trade and cooperation (the May 24 countermeasures)

We have been trying to resolve the pertinent issues and consistently develop inter-Korean relations based on rules consistent with fundamental principles.

We have clearly outlined the government's position regarding the conditions necessary to resume Mount Geumgang tours, as well as 3 principles pertaining to the development of Gaeseong Industrial Complex(GIC) and principles regarding the resolution of humanitarian issues

• Mount Geumgang tour → Prior to resuming the tours it is necessary to investigate the death of the tourist, as well as obtaining guarantees of personal safety for future tourists and a further guarantee of non-recurrence.
• GIC → Presented 3 principles: to establish clear principles in North Korea policy; to pursue and follow the principles of economics; and to promote forward-looking future development.
• Humanitarian issues such as abductees, POWs and separated families → Presented 3 principles which are, respect for humanitarian spirit, resolving fundamental issues and mutual cooperation.

The consensus among the people of South Korea is that there should be strict observation of those underlying principles while, at the same time, exercising flexibility on North Korea policy.

• A clear majority of people support a North Korea policy based on firm principles.
• The people also recognize the need for fundamental changes in North Korea.

• 64.8% of people support the maintenance of the current North Korea policy based on the principles currently set out (Asan Institute November 27, 2010).
• 80.3% of people support a more robust military response (Asan Institute, November 27, 2010).
• 57% of people support the induction of change in North Korea by forcible sanctions and pressures (Dong-a daily paper, December 2, 2010).

2. Substantive Unification Preparation and Making the issue a National Agenda

The consensus among the people of South Korea is that there should be strict observation of those underlying principles while, at the same time, exercising flexibility on North Korea policy.

• It is based on the assertion that a unified Korea will become a reality.
• Raising unification funds, including tax will be discussed in a public forum and it will be part of comprehensive preparations for unification.
• Specifically, a community-based "Peace Community, Economic Community, Korean Community" project will be promoted to encourage active public discourse on unification.

The administration will examine ways to raise funds as part of unification preparation. Specifically, the following have been agreed on

• It is based on the assertion that a unified Korea will become a reality.
• Raising unification funds, including tax will be discussed in a public forum and it will be part of comprehensive preparations for unification.
• Specifically, a community-based "Peace Community, Economic Community, Korean Community" project will be promoted to encourage active public discourse on unification.

A national consensus on unification preparation is a must-be-met challenge facing all Koreans.

• Headed by the Vice Minister of Unification, the Committee for a Unification Fund Open-forum, has been formed (Aug. 20, 2010) to put forward the projects for open discourse on unification.
• "Foundation of an inter-Koreas community program" that supports both the formation of an inter-Koreas community as well as policy research and social consensus has been launched (November, 2010).

The administration will examine ways to raise funds as part of unification preparation. Specifically, the following have been agreed on

• Over 140 "town meetings on public consensus" have been held in locations all over Korea this year.
• The plans concerning the allocation of unification funds will be formulated through public discourse.
• The plan will be carefully conceived so as to reflect a realistic vision for the future while minimizing the burden on the public.

3. Settlement support for North Korean refugees and the strengthening of internal policy as part of unification education

The ministry has been expanding its internal infrastructure by restructuring guidelines pertaining to the two Koreas, including trade and cooperation policies to prepare for unification

Settlement assistance for an "Era of 20,000 North Korean refugees"

• A new civilian support system for an "Era of 20,000 North Korean refugees" has been implemented.
  • "North Korean Refugees Foundation" was established in September 2010 to provide the refugees with comprehensive settlement support after leaving the Hanawon (an adaptation center for North Korean refugees).
  • 30 Hana Centers, individually tailored to the circumstances of each provincial community, are in operation to educate and train North Korean refugees.
  • 100 professional counselors for North Korean refugees were trained and assigned to work in Dec. 2010 to provide comprehensive psychiatric counseling services for North Korean refugees.
• Strengthening training courses for North Korean refugees' early adaption
  • An expanded Hanawon facility now has the capacity to serve 1,000. (As of December 2008, it could only serve 400)
  • An extension of the social adaptation training period at the Hanawon from 8 weeks to 12 weeks
  • A site in Hwacheon-gun, Gangwon Province was selected for the second Hanawon. Further expansion plans are underway to enable the facility to hold 500 refugees by the end of 2012.
• Education is focused on equipping refugees with the skills they need to find jobs and to sustain a stable livelihood and become self-reliant
  • The government, in conjunction with relevant ministries and with private sectors' assistance, is helping the refugees to find jobs.
  • The government has supported the establishment of 21 social enterprises and has begun its business incubation services.
  • The government is helping North Korean refugees attain economic independence, as well as providing increased incentives for finding jobs (Jan. 1, 2010) and expanding medical assistance payments (Nov. 1, 2010).
• The government is providing further assistance towards educating teen refugees for easier assimilation into schools
  • The government passed the "Adaption School for North Korean Refugees" Act in September 2010 and set up classes for North Korean teen refugees for smoother assimilation in September 2009.
  • The government assists community housing and alternative schools and has enhanced the scholarship programs
• Improvements were made on rules and regulations to protect and serve refugees by passing the, "North Korean Refugee Protection and Settlement Support" Act.
  • Two amendments (January 30, 2009 and March 26, 2010) were made to strengthen the resettlement systems in terms of the specific focus of each.
    • Scope of protection: Provides protection for long-term overseas resident refugees and covers the basic needs of unprotected refugees through administrative supports.
    • Employment: Various incentives are given by government agencies who hire refugees. A higher approval rating is given to those public institutions that hire refugees, as well as incentives to private industries and relaxing of the qualifications necessary for public positions. .
    • Housing: Teens with no parental supports are given subsidies and provided with stable community residential housing in cases where the regular housing service has been temporarily delayed.
    • Education: Educating refugees to adapt to South Korean society, adaption schooling for teen refugees, and the provision of equal opportunities and support for education in elementary, middle, and high schools. Others: Setting up the North Korean Refugees Foundation, offering professional counseling services, enhancing refugee settlement plans and encouraging private sector participation.

Strengthening unification education for teenagers and future leaders

• Various types of unification education workshops and field classes for teenagers were held.
  • In commemoration of the 60th anniversary of the Korean War, a "Peace and Unification March" with 625 teenage participants and field trips to battlefields and ecological sites were held (October 7, 2010).
  • "Unification classes for children" for primary, middle and high schools were held 43 times including a total of 8,000 participants over a 3 year span. A "Mobile school for unification education" also took place 339 times with 55,000 participants over a 3 year span.
  • A "Unification forum for college students" (43 times with 4,400 participants over 3 years) and an "Essay on unification competition" were held as well.
  • Development and dissemination of "Unification educational contents for IPTV" (in VOD format and special topic program).
• Expanded the forum for policy discourse to train leaders for unification
  • Policy forums for opinion leaders and a "Forum for unification discourse" including workshops for various target audiences were held 72 times in 2010.
  • Many primary and middle school principals as well as unification training staff from various educational organizations were invited to workshops (574 times, 71,576 participants over a 3 year span).
  • A course on "Leading future unification" was held for government staff including local and public service companies (106 participants) in addition to a "Course on unification education professionals" for 103 participants.

4. Continuation of inter-Korean cooperation & exchanges and humanitarian assistance.

Strengthening of the exchanges and cooperation projects between the two Koreas.

• This administration implemented the 'May 24 countermeasures' after the "sinking of the Cheonan" navy vessel

  △ A ban on North Korean vessels from navigating the South's territorial waters △ Suspended Inter-Korean trade △ Prohibiting new investment and restricting the number of workers in the GIC △ The suspension of humanitarian aid except for that to infants, children and the elderly

• Meanwhile, measures were taken to minimize the damage to our industries affected by the 'May 24 countermeasures'
  • The government surveyed all the South Korean companies that trade with the North and opened a "Counseling Center for Trading Hardships" (May 25, 2010).
  • The government permitted a temporary suspension of the 'May 24 countermeasures' to allow inbound and outbound shipments of materials.
  • Special financial assistance to companies that is particularly involved in trade with the North.
• Up until the 'May 24 countermeasures', exchanges and cooperation between the two Koreas continued.
  • Trade between the two Koreas was valued at $5,412 million for the year 2008 through 2010, 28.7% more than the same period between 2005 through 2007 which was $4,230 million.
  • Private exchanges in such sectors as sports, religion, education, academia and cultural events nonetheless steadily continue.
  • Despite North Korea's provocative actions such as "the sinking of the Cheonan" vessel and the "artillery attack on Yeonpyeong Island", this administration has continued to safely and successfully operate the GIC.
• The measures necessary for gaining transparency in exchanges and cooperation are ongoing
  • Through the "Exchange and Cooperation Act", the government has: △streamlined the process △ encouraged economic cooperation △ promoted the rules and regulations for inter-Korea exchanges and cooperation.
  • The government has also increased transparency on materials for import and export by setting up the "Trade materials management system" (launched in August 2009, and was completed in February 2010).

Higher priority in resolving humanitarian issues

• Institutionalized a legal infrastructure for the family reunion of separated families and facilitated the exchanges.
  • Demanded a fundamental solution on separated families at Red Cross meetings on 6 separate occasions since 2009.
  • The "Promotion of Information and Exchanges between Separated Families of North and South Korea" act was passed in March 2009
  • A total of 1,774 separated family members have reunited during the years 2009 through 2010 and special events for elderly members of separated families were held 8 times.
• The government has placed a high priority on resolution of POWs and abductees and has sought the fundamental resolution of the abductees issue by securing their return.
  • The government has consistently demanded that the North actively resolve the issue of POWs and abductees still in North Korea.
  • Based on the "Supporting South Korean Victims Abducted by North Korea After the Korean War" Act, provision of financial compensation to the abductees' families began.
  • There were further improvements to the infrastructure of institutions investigating the abduction of Korean War abductees in an effort to restore honor to them and their families.
• Humanitarian assistance has continued for the vulnerable in North Korea
  • The government provided H1N1 anti-viral medication valued at US$15 million, 5,000 tons of rice to flood victims worth $10 million, in addition to funds worth $70 million for infants, children, the needy via NGOs and international aid organizations.
  • In the private sector, they provided further assistance for food, medicine, and other supplies worth a total of $125 million.
• The UN, in close coordination with the international community, has sought to promote human rights in North Korea.
  • Regarding human rights as a universal value which needs to be upheld, the government has a strong and unwavering commitment to confront such issues.
  • The government supports the activities of human rights NGOs and their efforts to improve human rights in the North.

2. North Korea and Unification Policy for the future

1. Guiding desirable changes in North Korea

Our government will seek to induce changes in North Korea for the advancement of inter-Korea relations and for the unification of the Korean peninsula.

In the meantime, our government will implement North Korea policies that are based on consistency and fundamental principles.

• Our government will continue to press the North to make fundamental changes to their policies in light of the Vision 3000 Initiative.
• Our government will demand of North Korea a sincere and ingenuous change in attitude towards the nuclear issue and inter-Korean relations.
• Other issues being addressed include pressing for North Korean nuclear weapons to be replaced by a nuclear-free peace, for the North to move from a position of international isolation to a place in the international community, and to replace their military-first policy with one which focuses on economic recovery and the enhancement of people's lives.

Our government will implement a policy that will directly reach the people of North Korea.

• The government will ensure that benefits reach the people of the North directly by closely monitoring the dissemination process of humanitarian aid in the North.
• The administration will expand their efforts to enhance human rights in North Korea alongside close cooperation with domestic and international organizations

2. Achieving improved inter-Korea relations

The government will lay the groundwork for better inter-Korea relations while maintaining a strong defensive posture.

The government demands a sincere change in attitude from North Korea first and, following these changes, will engage in productive inter-Korea dialogue.

• ① Guarantee of a non-recurrence of, and admission of responsibility by the North for the sinking of the Cheonan vessel and the artillery attack on Yeonpyeong Island. ② Verifiable progress on denuclearization is a must.
• Verification of the denuclearization process is the starting point for the meaningful advancement of inter-Koreans relations.

The government will lay a course for inter-Korea dialogue and cooperation based on mutual respect.

• The administration will seek to have productive dialogue with a sincere attitude on core issues, but will not seek dialogue simply for the sake of having dialogue.
• Mutually beneficial and healthy inter-Korea relations must be realized without resorting to unilateral dialogue and cooperation as in the past.
• However, the government will take decisive actions against any bad behavior of the North and prevent any further fundamental regressions on inter-Korea relations

3. Unification preparation is necessary for a peaceful unification of the Korean peninsula

Our government will prepare detailed and realistic steps necessary for unification.

• Our government will find ways to finance the resources necessary for unification while listening to the voice of people.
• Our government will enhance communication with the people to consolidate the will and interests on unification preparation.
• Our government will expand and further develop policies to prepare for unification by providing education on unification and supporting the resettlement of North Korean refugees.

Our government will take further steps by taking the initiative in peacefully unifying the Korean peninsula while gathering support from the international community

• Our government will promote the positive aspects of a unified Korean peninsula in the international community.
• Our government will gather support and recognition from the international community on the merits of unifying Korea under these initiatives.

3. President Lee Myung-bak's quotations on his desire to hold inter-Korean dialogue

"I propose setting up a permanent liaison office in Seoul and Pyongyang in order to continue inter-Korea dialogues" (Washington Post, April 17, 2008).

"It is imperative that we have sincere dialogue between the two Koreas for the benefit of on-going and future projects." 

"We need to resume dialogue between the two Koreas at once. I am willing to engage in sincere dialog with the North on how best we can implement the July 4 joint declaration, the inter-Korea basic agreement, the joint declaration on denuclearization, the June 15 joint declaration, and the October 4 declaration" (Address to National Assembly, July 11, 2008).

"Despite the fatal shooting of a tourist Mount Geumgang, I hope that the North will return to dialogue and economic cooperation" (60th Anniversary of Independence, August 15, 2008). 

"I ask again that the North resume dialogue immediately for the peaceful co-existence and mutual prosperity of the two Koreas" (Address to a meeting of the Advisory Council on democratic and peaceful unification, September 22 2008).

"We are ready to talk and to cooperate with the North anytime" (New year address in December 2009).

"The door for unconditional dialogue is now wide open. The two Koreas should engage in dialogue at the earliest opportunity. South and North Korea should agree to work together in the spirit of the Independence movement." (March 1 commemoration address, March 1, 2009).

"Once the North abandons its nuclear program and takes a step towards reconciliation and cooperation, the South will join forces with the international community in making every possible effort to assist the North." (Address marking Memorial day, June 6, 2009). 

"This administration is prepared for talks and to cooperate on all pertinent issues between the two Koreas anytime at any level." (Address marking Independence Day, August 15, 2009).

"I urge the North to rejoin the six-party talks. This will ensure the denuclearization of the Korean peninsula and open up a real opportunity for cooperation between the two Koreas. There is a need to establish a body that will allow inter-Korea dialog to take place at any time. It is my wish that the North open their hearts and begin genuine dialog and thus open the road to cooperation." (New Year address, January 4, 2010).

"I am ready to meet with Kim Jong-il anytime. There is no reason not to meet this year if the situation is conducive to promoting peace on the peninsula and denuclearization. We would both have plenty to talk about on nuclear issues" (during BBC interview on January 28, 2010).

"The North has to stop regarding the South as a mere economic partner. We need to sincerely discuss the "Grand Bargain" initiative concerning the nuclear issue." (Independence Movement Day Commemoration Address, March 1, 2010).

"Inter-Korea relations are now faced with a new paradigm change. We must strive toward coexistence rather than confrontation and for development, not stagnation. We must overcome merely dealing with the current situation of a divided Korea and set our goals toward peaceful unification." (August 15, 2010).

"We need to formulate and implement a policy of peace and unification based on strong national security. Furthermore, we must try to encourage the North Korean people to join our march toward freedom and prosperity. The road to peace is not blocked. The door for dialog is not yet closed. We have plans to drastically increase economic cooperation with the international community if the North demonstrates sincerity." (New Year Address, January 3, 2011).

"I am willing to engage in dialogue, and negotiate within the framework of six-party talks if the North is willing to engage in sincere dialogue without resorting to military provocations. I am willing to have a summit meeting if necessary." (Feb. 1, 2011)