Fire and fury: With missile launch, North Korea shows ire at neighbor

A view of North Korea's missile launch on Thursday, in this undated picture released by North Korea's Central News Agency (KCNA) on July 26, 2019. KCNA/via REUTERS

By Josh Smith and Hyonhee Shin

SEOUL (Reuters) – North Korean leader Kim Jong Un’s blistering criticism of South Korea as he oversaw his latest missile launch this week sparked new questions over the South’s role in mediating a nuclear deal between the North and the United States, analysts said.

South Korean President Moon Jae-in has been one of the most vocal proponents of engagement with the North, using last year’s Winter Olympics to host its delegations and then meeting Kim at summits filled with feel-good imagery, smiles, and hand-holding.

But Moon has been unable to convince Washington to ease sanctions and allow economic cooperation between the neighbors, nor has he persuaded Kim to take major steps toward giving up his nuclear weapons.

On Friday, North Korea called the previous day’s missile launches a warning to South Korean “warmongers” to stop importing weapons and holding joint military drills, with Kim explicitly urging Moon not to ignore them.

Kim may be impatient with what he sees as South Korea overpromising and underdelivering, said Jenny Town, a managing editor at 38 North, a U.S.-based project that studies North Korea.

“The North Koreans have made several statements challenging Moon to move forward, but obviously the situation has left Seoul unable to do so,” she said.

For his part, Moon said there had been “a lot of progress so far in inter-Korean relations and North Korea-U.S. relations, but we still have a long way to go.”

“I think the biggest challenge is national unity,” he added, in comments to a group of Buddhist leaders in Seoul.

North Korea’s growing frustration with its neighbor culminated in the missile tests as a protest against the South’s acquisition of new weapons, such as U.S. F-35 stealth fighters, and its participation in military drills with the United States.

Kim’s comments showed how skeptical North Korea has become regarding the South’s usefulness in talks with the United States, said Shin Beom-chul of the Asan Institute for Policy Studies in Seoul.

“To them, the South Korean government is only a nuisance,” he said. “So the message is either ‘Persuade the United States,’ or ‘Stay out of it.'”

Overseeing Thursday’s launches, Kim Jong Un said the new missiles had to be developed to neutralize the weapons being acquired by South Korea and turn them into “scrap iron”.

South Korea’s acquisition of American F-35 stealth fighter jets, the first of which arrived in March, would force its neighbor to develop and test “special armaments” to destroy the aircraft, the North had warned in mid-July.

While Moon has faced some domestic concern that national security could be affected by his North Korean pacts, from a no-fly zone to fewer guard posts and landmines along the heavily fortified border, he has also pushed ahead with plans to modernize and invest in the South’s already large military.

In January the defense ministry unveiled a plan to boost military spending for the next five years by an additional 270.7 trillion won ($228 billion).

Still, some observers believe Kim Jong Un is leaving space for engagement by focusing on South Korea’s military.

“The state media report shows the North was still willing to maintain inter-Korean ties, as they mostly targeted the military forces, not the whole government,” said Kim Dong-yup, a professor at Kyungnam University’s Far East Institute in Seoul.

An official at Moon’s office said it would not comment on the state media report but the government remained committed to working to revive momentum for nuclear talks.

Poor relations have also prompted a show of reluctance by Pyongyang in accepting 50,000 tons of rice South Korea offered as food aid to its impoverished neighbor.

A South Korean official said the government discussed the plan with the World Food Programme, but Pyongyang had recently showed a “negative” attitude, citing the joint military drills.

Attempts to discuss two South Korean sailors detained by the North have also gone unanswered, the official added.

(Reporting by Josh Smith and Hyonhee Shin; Additional reporting by Joyce Lee; Editing by Clarence Fernandez)

North Korea nuclear arsenal too developed to destroy quickly, says Moon

North Korea nuclear arsenal too developed to destroy quickly, says Moon

By Christine Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Tuesday it would not be easy for reclusive North Korea to destroy its nuclear arsenal quickly, even if wanted to, given its weapons programs were so developed.

North Korea is under heavy international pressure to end its weapons programs, pursued in defiance of U.N. Security Council resolutions. But it has vowed never to give up its nuclear arsenal.

Speaking to reporters in the Philippines, Moon said that if North Korea agreed to hold talks, negotiations could be held with all options open.

“If talks begin to resolve the North Korea nuclear issue, I feel it will be realistically difficult for North Korea to completely destroy its nuclear capabilities when their nuclear and missile arsenal are at a developed stage,” Moon said in a briefing.

“If so, North Korea’s nuclear program should be suspended, and negotiations could go on to pursue complete denuclearization.”

Moon’s remarks were made available by the presidential Blue House.

Last week, the North said it did not oppose dialogue, but would “never put the issue related to the supreme interests of the DPRK and security of its people on the bargaining table”.

“We are not interested in such dialogue and negotiations in the least,” the North’s official news agency said, referring to the country by its official name, the Democratic People’s Republic of Korea.

The North defends the programs as a necessary defense against U.S. plans to invade. The United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, denies any such intention.

U.S. President Donald Trump has traded insults and threats with North Korean leader Kim Jong Un as North Korea races toward its goal of developing a nuclear-tipped missile capable of reaching the United States.

Trump threatened in his maiden U.N. address to “totally destroy” North Korea if the United States was threatened and has said the time for talking, the policy of previous U.S. administrations, is over.

Moon reiterated his stance that now was the time to increase pressure on North Korea so that it would come to talks.

He said differences in understanding between South Korea and China, North Korea’s lone major ally, regarding the deployment of the U.S. Terminal High Altitude Area Defense (THAAD) system on South Koran soil had not been resolved.

“China has not said it has changed its stance to agree to THAAD and still says THAAD infringes on its security. We have, in turn, explained THAAD is not aimed at China but only toward curbing North Korea’s nuclear and missile provocations,” he said.

Last month, South Korea and China agreed to end a year-long standoff over THAAD which had seen South Korean companies doing business in China suffer from retaliation against the system’s deployment.

(Reporting by Christine Kim; Editing by Nick Macfie)

South Korea expects more provocative acts by North Korea in mid-October

South Korea expects more provocative acts by North Korea in mid-October

By Christine Kim

SEOUL (Reuters) – South Korea expects more provocative acts by North Korea next month, to coincide with the anniversary of the founding of the North Korean communist party and China’s all-important Communist Party Congress.

During a meeting with President Moon Jae-in on Thursday, national security adviser Chung Eui-yong said he expected Pyongyang to act around Oct. 10 and 18, but gave no details.

The South Korean security adviser’s report also pointed to the risk that a military conflict could by sparked by “accidental incidents,” said Park Wan-ju, a lawmaker and head spokesman of the ruling Democratic Party.

“The president said the United States speaks of military and diplomatic options, but South Korea can’t go through war again,” said Park.

Tension on the Korean peninsula has risen in recent weeks as North Korea’s leader Kim Jong Un and U.S. President Donald Trump exchanged war-like threats and insults over the North’s nuclear and missile development program.

The North has accused Trump of declaring war after he warned Kim’s regime would not last if he persisted in threatening the United States and its allies, having earlier warned North Korea would be totally destroyed in such an event.

Asked if China had a plan to respond to an emergency in North Korea, such as securing nuclear and missile sites, Chinese defense ministry spokesman Wu Qian said, “Military means cannot become an option,” and urged talks to resolve the issue.”The Chinese military will make all necessary preparations to protect the country’s sovereignty and security and regional peace and stability,” he added, without elaborating.

China has vowed to uphold U.N. sanctions against North Korea, besides seeking to get stalled talks restarted with Pyongyang.

On Thursday, China’s commerce ministry said North Korean firms or joint ventures in China would be shut within 120 days of the latest United Nations Security Council sanctions passed on Sept. 12.

Overseas Chinese joint ventures with North Korean entities or individuals will also be closed, the ministry said in a statement on its website, without providing a timeframe.

The ministry had issued similar rules after a previous set of U.N. sanctions in August.

Pyongyang conducted its sixth and largest nuclear test on Sept. 3 and has launched dozens of missiles this year as it accelerates a program aimed at eventually targeting the United States with a nuclear-tipped missile.

The United States and South Korea are technically still at war with North Korea because the 1950-53 Korean conflict ended with a truce and not a peace treaty.

China, the North’s main ally, would probably be extremely unhappy if Pyongyang tested a missile or carried out some other act during its Communist Party Congress, held every five years.

Park said President Moon told the meeting that Washington and Seoul agreed that pressure needed to be applied to North Korea, with the door to talks still open.

In a separate speech on Thursday, Moon said cooperation with the international community to curb the North’s nuclear ambitions was at its highest ever and called for the strengthening of South Korea-U.S. defenses to rein in the North.

Expulsion of North Korean diplomats has been among the measures countries have taken against the reclusive state since its latest nuclear test.

Malaysia banned citizens from traveling to North Korea, citing the escalating tension on the Korean peninsula.

ROTATIONAL DEPLOYMENT

South Korean lawmakers said Chung had told them the United States and South Korea had agreed on the rotational deployment of U.S. strategic assets to South Korea, possibly as soon as year-end. The nature of the assets was not specified.

President Moon added it was inappropriate to discuss the deployment of nuclear weapons in South Korea, the lawmakers said.

Moon said he had opposed the deployment of U.S. Terminal High Altitude Area Defence (THAAD) system in South Korea, but rapid improvement in North Korea’s missile capabilities prompted the decision.

China opposes the deployment of THAAD because it believes its powerful radar could be used to look inside its territory. South Korea and the United States have said it is only to curb North Korea’s missile threats.

(Additional reporting by Christian Shepherd and Ben Blanchard in BEIJING; Editing by Simon Cameron-Moore and Clarence Fernandez)

U.S., South Korea agree to revise missile treaty in face of North Korean threats

The intercontinental ballistic missile Hwasong-14, in this photo released July 4, 2017.

SEOUL (Reuters) – U.S. President Donald Trump agreed with South Korean President Moon Jae-in to revise a joint treaty capping the development of the South’s ballistic missiles, Moon’s office said on Saturday, amid a standoff over North Korea’s missile and nuclear tests.

Trump also gave “conceptual” approval to the purchase by the South of billions of dollars of U.S. military hardware, the White House said.

The South wants to raise the missile cap to boost its defenses against the reclusive North, which is pursuing missile and nuclear weapons programs in defiance of international warnings and UN sanctions.

“The two leaders agreed to the principle of revising the missile guideline to a level desired by South Korea, sharing the view that it was necessary to strengthen South Korea’s defense capabilities in response to North Korea’s provocations and threats,” South Korea’s presidential Blue House said.

Impoverished North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and its main ally, the United States.

North Korea sharply raised regional tension this week with the launch of its Hwasong-12 intermediate-range ballistic missile that flew over Japan and landed in the Pacific.

That followed the test launch of two long-range ballistic missiles in July in a sharply lofted trajectory that demonstrated a potential range of 10,000 km (6,000 miles) or more that would put many parts of the U.S. mainland within striking distance.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

South Korea’s development of its ballistic missiles is limited to range of 800 km (500 miles) and payload weight of 500 kg (1,100 pounds) under a bilateral treaty revised in 2012.

South Korea has said it wants to revise the agreement to increase the cap on the payload.

The two countries agreed to the cap as part of a commitment to a voluntary international arms-control pact known as the Missile Technology Control Regime, aimed at limiting the proliferation missiles and nuclear weapons.

The two leaders pledged to continue to apply strong diplomatic and economic pressure on North Korea and to make all necessary preparations to defend against the growing threat by the North, the White House said.

The White House did not mention the voluntary bilateral agreement but said the two leaders agreed to strengthen their defense cooperation and South Korea’s defense capabilities.

Trump “provided his conceptual approval of planned purchases by South Korea of billions of dollars in American military equipment”, the White House said.

Trump, who has warned that the U.S. military is “locked and loaded” in case of further North Korean provocation, reacted angrily to the latest missile test, declaring on Twitter that “talking is not the answer” to resolving the crisis.

North Korea defends its weapons programs as necessary to counter perceived U.S. aggression, such as recent air maneuvers with South Korean and Japanese jets.

(Reporting by Jack Kim in Seoul and Eric Beech in Washington; Editing by Nick Macfie)

No Korean military talks after North snubs South’s call

A concrete border is seen as a South Korean soldier stands guard at the truce village of Panmunjom, South Korea July 19, 2017. REUTERS/Kim Hong-Ji

SEOUL (Reuters) – South Korea’s proposed military talks aimed at easing tension between the two Koreas planned for Friday failed to happen after the North snubbed the call, a setback for new President Moon Jae-in’s hopes for dialogue.

The North has remained silent on the South Korean proposal, made on Monday, for talks on ways to avoid hostilities along their heavily fortified border.

Moon took office in May pledging to engage the North in dialogue, as well as to bring pressure on it to impede its nuclear and missile programs.

The proposal for talks came after the North said it conducted its first test of an intercontinental ballistic missile on July 4, and said it had mastered the technology to mount a nuclear warhead on it.

South Korean defense ministry spokesman Moon Sang-gyun told a briefing the military talks proposed for Friday were practically impossible as the North had not responded.

“It is an urgent needed task for peace and stability on the Korean peninsula to restore dialogue in the military area and to ease military tension between the South and the North,” he said.

Moon said the proposal for talks still stood and he urged the North to respond.

It was the first formal overture by South Korea since cross-border ties broke down early last year under the government of Moon’s predecessor, who imposed unilateral sanctions on the North for its nuclear tests and missile launches.

The North has conducted its fourth and fifth nuclear tests and a quick succession of missile-related activities since the beginning of 2016, after leader Kim Jong Un had pledged to improve ties with the South in a New Year’s address.

The South had proposed talks to discuss ways to end activities on the border that have fueled tension.

By that, South Korea usually refers to loudspeaker propaganda broadcasts by both sides, while North Korea wants an end to joint U.S.-South Korea military exercises.

(Reporting by Jack Kim; Editing by Michael Perry, Robert Birsel)

Trump calls for firm response to North Korea, targets Seoul on trade

U.S. President Donald Trump (L) welcomes South Korean President Moon Jae-in at the White House in Washington, U.S., June 30, 2017. REUTERS/Jim Bourg

By David Brunnstrom and Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump called for a determined response to North Korea after talks with South Korea’s President Moon Jae-in on Friday where he stressed the importance of their alliance but took aim at Seoul over trade and sharing the cost of defense.

Trump said the United States was renegotiating what he characterized as a “rough” trade deal with South Korea agreed to five years ago by his predecessor, Barack Obama, and reiterated that an era of “strategic patience” over North Korea’s nuclear and ballistic missile programs had ended.

“Together we are facing the threat of the reckless and brutal regime in North Korea,” Trump said as he stood alongside Moon in the White House Rose Garden. “The nuclear and ballistic missile programs of that regime require a determined response.”

Despite the tough rhetoric, it remains unclear how Trump will find a way forward on North Korea, which is working to develop a nuclear-tipped missile capable of hitting the United States.

U.S. Defense Secretary Jim Mattis has warned the consequences of any military solution would be “tragic on an unbelievable scale.” Trump had pinned his hopes on persuading China, North Korea’s neighbor and main trading partner, to do more to rein in Pyongyang, although he has lately grown frustrated that Beijing has not taken stronger action.

Trump called on regional powers to implement sanctions and demand North Korea “choose a better path and do it quickly.”

Moon, who warned of a “stern response” to any provocations, urged Pyongyang to return promptly to talks.

“Our two leaders will employ both sanctions and dialogue in a phased and comprehensive approach,” Moon said of South Korea and the United States.

Trump and Moon have said they are open to renewed dialogue with North Korea but only under circumstances that would lead to Pyongyang giving up its weapons programs.

Moon told an event at the Center for Strategic and International Studies think tank that moves by North Korea that could create conditions for dialogue could include a freeze on its nuclear and missile tests, or the release of three Americans it is holding in the country.

To be successful, talks would have to involve North Korean leader Kim Jong Un and have as their ultimate aim the complete dismantling of North Korea’s nuclear program, he added.

Trump sought to woo China since a summit with Chinese President Xi Jinping in April but the honeymoon period appears to be over. On Thursday, the United States targeted a Chinese bank and sanctioned Chinese individuals and a firm for dealing with North Korea and approved a $1.42 billion arms deal with Taiwan – decisions that angered Beijing.

STEEL AND AUTOS

South Korea is a long-standing American ally but Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact.

“We will do more to remove barriers to reciprocal trade and market access,” Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos.

Trump said he was encouraged by Moon’s assurances that he would seek a level playing field for American workers and businesses, particularly automakers.

A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year.

Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly.

“Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies,” she said.

Trump also emphasized the need to ensure equitable sharing of costs for defense, returning to a theme he raised during his campaign and brought up with other allies, including NATO countries and Japan.

A senior U.S. official said in a briefing before the president’s meeting with Moon that South Korea was in many respects a “model ally,” given its spending of 2.7 percent of GDP on defense and Moon’s plan to grow capabilities.

“We shouldn’t view South Korea as somehow laggard on that front,” the official said on condition of anonymity.

The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011.

At the start of Friday’s talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained.

“I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side,” he said.

Ross said later on Friday that some progress had been made in the talks.

The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues.

(Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay)

Trump to press South Korea leader on trade as North Korea looms

U.S. President Donald Trump welcomes South Korean President Moon Jae-in to the White House in Washington, U.S., June 29, 2017. REUTERS/Carlos Barria

By Jeff Mason and David Brunnstrom

WASHINGTON (Reuters) – U.S. President Donald Trump will press South Korean President Moon Jae-in to solve trade differences over cars and steel in meetings in Washington focusing on the nuclear threat from North Korea.

Concerns about the U.S. military’s THAAD missile defense system and China’s role in the region also are likely to come up in talks between Trump and Moon at the White House.

Moon, making his first trip to the United States since becoming his country’s president in May, joined Trump and his wife, Melania, for dinner in the White House State Dining Room on Thursday evening ahead of further talks on Friday.

“I know you’ve been discussing with our people some of the complexities of North Korea and trade and other things, and we’ll be discussing them all as we progress, and it could be very well late into the evening,” Trump told Moon.

“I’d like to also congratulate you upon your election victory. It was a great victory, and you did a fantastic job. A lot of people didn’t expect that, and I did expect it. I thought that was going to happen.”

Both men have an interest in building a strong relationship but tensions could puncture that effort.

Trump has spoken harshly about U.S. trade imbalances with South Korea and threatened to tear up a trade agreement with the country. Moon has taken a wary stance on the Terminal High Altitude Area Defense (THAAD) system that the United States deployed in South Korea in March.

“I think they’ll have a friendly and frank discussion about the trade relationship,” a White House official told reporters on Wednesday, noting concerns about barriers to U.S. auto sales and surplus Chinese steel that arrives in the United States via South Korea.

After the dinner, Trump tweeted that he had a “very good meeting” with Moon and that “many subjects (were) discussed including North Korea and new trade deal!”

The U.S. goods trade deficit with South Korea has more than doubled since the KORUS pact took effect in 2012, from $13.2 billion in 2011 to $27.7 billion in 2016. It was forecast to boost U.S. exports by $10 billion a year but they were $3 billion lower in 2016 than in 2011.

In an interview with Reuters in April, Trump called the 5-year-old trade deal “horrible” and said he would either renegotiate or terminate it.

During remarks at the U.S. Chamber of Commerce on Wednesday, Moon said unfair trade practices would be eradicated and factors that limited competition, such as market entry barriers and price regulations, would be re-evaluated under his administration.

Trump has made challenging trade agreements a hallmark of his administration since taking office in January.

NORTH KOREA FOCUS

Despite tensions over that issue, his meetings with Moon are likely to focus largely on North Korea.

Moon has said he wants to form a friendship with the former New York businessman and find common ground on how to resolve the crisis over North Korea’s nuclear and missile programs.

Trump wants to build ties with an important new leader in the region as he grows frustrated that his relationship with Chinese President Xi Jinping has not resulted in stronger action by Beijing to rein in Pyongyang.

The United States on Thursday imposed sanctions on two Chinese citizens and a shipping company for helping North Korea’s nuclear and missile programs and accused a Chinese bank of laundering money for Pyongyang.

The Trump administration also announced it plans to sell Taiwan about $1.42 billion in arms.

Moon told Reuters in an interview last week he wanted to discuss a two-phased approach to resolving the North Korean nuclear issue, starting with a freeze on North Korea’s nuclear and missile development followed by complete dismantlement.

“I am planning to have frank and open discussions with President Trump on the step-by-step approach,” he said.

The THAAD defense system could be a sticking point.

Moon, who has advocated a more moderate approach toward Pyongyang, expressed shock late last month upon learning that four more launchers for the controversial system had been brought into the country. He ordered an investigation after his Defense Ministry failed to inform him of the move.

The system, whose installation irritated China, is meant to counter the threat from North Korea’s missile program. The White House said it did not expect THAAD to be a major point of conversation and Moon is expected to assure Washington that his recent decision to postpone full THAAD deployment to conduct an environmental review was a measure to follow domestic law.

Despite potential areas of disagreement, the two leaders are expected to express common resolve over threats from North Korea.

“The similarities in our approaches are already evident,” the White House official said, noting that both men had expressed willingness to engage with Pyongyang under the right conditions. “Even once the conditions may present themselves, to enter into dialogue we must maintain and actually increase pressure on North Korea. That’s President Moon’s approach; it’s President Trump’s approach.”

(additional reporting by James Oliphant; Editing by Bill Trott and Tom Brown)

Exclusive: South Korea president calls on China’s Xi to do more on North Korea nuclear program

South Korean President Moon Jae-in attends an interview with Reuters at the Presidential Blue House in Seoul, South Korea, June 22, 2017. REUTERS/Kim Hong-Ji

By Jean Yoon and Soyoung Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Thursday China should do more to rein in North Korea’s nuclear program and he would call on President Xi Jinping to lift measures against South Korean companies taken in retaliation against Seoul’s decision to host a U.S. anti-missile defense system.

In an interview with Reuters ahead of his trip to Washington next week for a summit with U.S. President Donald Trump, Moon said ‘strong’ sanctions should be imposed if North Korea tests an intercontinental ballistic missile (ICBM) or conducts a sixth nuclear test.

“It must be sufficiently strong enough that it would prevent North Korea from making any additional provocations, and also strong enough that it will make North Korea realize that they are going down the wrong path,” Moon said.

The comments mark the toughest warning yet by the liberal former human rights lawyer, who was elected in May after campaigning for a more moderate approach to the North and engaging the reclusive country in dialogue. As a candidate, he said, sanctions alone have failed to impede Pyongyang’s defiant pursuit of nuclear weapons and ballistic missiles.

North Korea will acquire the technology to deploy a nuclear-tipped ballistic missile capable of hitting the mainland United States “in the not too distant future,” Moon said.

EXERT MORE PRESSURE

“I believe China is making efforts to stop North Korea from making additional provocations, yet there are no tangible results as of yet,” Moon told Reuters at the sprawling Blue House presidential compound.

“China is North Korea’s only ally and China is the country that provides the most economic assistance to North Korea,” Moon said. “Without the assistance of China, sanctions won’t be effective at all.”

Moon’s remarks echoed that of U.S. President Donald Trump, who said in a tweet on Tuesday Chinese efforts to persuade North Korea to rein in its nuclear program have failed. Top U.S. officials pressed China on Wednesday to exert more economic and diplomatic pressure on North Korea-level in talks with their counterparts in Washington on Wednesday.

“Maybe President Trump believes that there is more room for China to engage North Korea and it seems that he is urging China to do more. I can also sympathize with that message,” Moon said.

China accounts for 90 percent of world trade with North Korea. Diplomats say Beijing has not been fully enforcing existing international sanctions on its neighbor, and has resisted tougher measures, such as an oil embargo and bans on the North Korean airline and guest workers.

Washington has considered imposing “secondary sanctions” against Chinese banks and other firms doing business with North Korea.

G20 MEETING

South Korea and the United States agreed to deploy the Terminal High Altitude Area Defense (THAAD) system in response to the growing missile threat from North Korea.

But the move has angered China, which says the system’s powerful radar will look deep into its territory and undermine regional security. China has pressured South Korean businesses via boycotts and bans, such as ending Chinese group tours to South Korea and closing most of South Korean conglomerate Lotte Group’s Lotte Mart retail stores in China.

Lotte handed over a golf course it owned in southern South Korea so the THAAD battery could be installed there.

Moon said that while China has never officially acknowledged economic retaliation, many South Korean businesses face difficulties in China, and he hopes to hold talks with Xi at the G20 summit in Hamburg, Germany next month to address the issue.

“If I have the chance to meet President Xi, I will ask for him to lift these measures. This is the agenda that we cannot evade,” Moon said.

“If we were to link political and military issues to economic and cultural exchanges, this could lead to some hindrance to the development of our friendly relationship between our two countries.”

Moon said he wants to sit down with as many world leaders as possible in Hamburg — including Xi, Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin — where he expects the North’s nuclear program will top the agenda.

THAAD MYSTERIOUSLY ACCELERATED

Moon, who pledged to review the controversial decision to deploy THAAD during his election campaign and delayed full deployment of the system this month to review how the system will affect the area’s environment, said it was important to ensure domestic law and regulations are properly enforced.

“But for some reason that I do not know, this entire THAAD process was accelerated.”

In the first disclosure of the details of the schedule of the THAAD deployment agreed by the two countries last year, Moon said the original agreement was to deploy one launcher by the end of 2017 and the remaining five launchers next year.

In a surprise pre-dawn operation, the U.S. military moved two launchers into the deployment site in late April just days before the election. In addition, four more launchers had been brought into the country, which Moon called “very shocking.”

JAPAN’S WARTIME PAST

Japan is an important partner in the effort to resolve the North Korean crisis but Tokyo’s refusal to fully own up to its wartime past, its claims to the disputed islands between the two countries as well as its growing military spending are concerning, Moon said.

“If Japan were to show its strong resolve in looking back on its past history and sending a message that such actions will never happen again… then I believe that this will go a long way in further developing its relations with not only Korea but also with many other Asian nations,” he said.

Moon has said many South Koreans did not accept a deal reached by his conservative predecessor and Japan’s Abe in 2015 to resolve the issue of Korean “comfort women” — a euphemism for women forced to work in the Japanese military’s wartime brothels.

“Japan does not make full efforts to resolve issues of history between our two countries, including the comfort women issue,” Moon said.

Moon said he has “high expectations” for the upcoming summit with Trump next week and said the priority the two leaders have placed on North Korea has raised the possibility the nuclear issue will be resolved.

“I’m very glad that President Trump has made the resolution of North Korea’s nuclear issue as top of his priority list on his foreign affairs agenda.”

(Additional reporting by Jack Kim, Christine Kim, Heekyong Yang and Haejin Choi in Seoul; Editing by Bill Tarrant)

Trump willing to try engagement with North Korea, on conditions: Seoul

U.S. President Donald Trump gestures as he walks on the South Lawn of the White House upon his return to Washington, U.S., May 17, 2017. REUTERS/Yuri Gripas

By Christine Kim

SEOUL (Reuters) – U.S. President Donald Trump told South Korea’s presidential envoy that Washington was willing to try to resolve the North Korean nuclear crisis through engagement, but under the right conditions, South Korea’s foreign ministry said on Thursday.

Trump has said “a major, major conflict” with North Korea is possible and all options are on the table but that he wanted to resolve the crisis diplomatically, possibly through the extended use of economic sanctions.

South Korean President Moon Jae-in, who took office last week, has campaigned on a more moderate approach toward the North but he has said it must change its attitude of insisting on arms development before dialogue can be possible.

Moon’s envoy to Washington, South Korean media mogul Hong Seok-hyun, said Trump spoke of being willing to use engagement to ensure peace, Hong said in comments carried by television.

“The fact that Trump said he will not have talks for the sake of talks reiterated our joint stance that we are open to dialogue but the right situation must be formed,” Foreign Ministry spokesman Cho June-hyuck told a regular briefing.

South Korea and the United States agreed during a visit to Seoul by Trump’s national security advisers this week to formulate a “bold and pragmatic” joint approach, Cho added.

The North has vowed to develop a missile mounted with a nuclear warhead that can strike the mainland United States, saying the program is necessary to counter U.S. aggression.

The United States, which has 28,500 troops in South Korea to guard against the North Korean threat, has called on China to do more to rein in its neighbor.

China for its part has been infuriated by the U.S. deployment of an advanced Terminal High Altitude Area Defense (THAAD) anti-missile system in South Korea, saying it was a threat to its security and would do nothing to ease tension with Pyongyang.

South Korea has complained that some of is companies doing business in China have faced discrimination in retaliation for the system’s deployment.

North Korea conducted its latest ballistic missile test on Sunday in defiance of U.N. Security Council resolutions, saying it was a test of its capability to carry a “large-size heavy nuclear warhead”.

But a senior North Korean diplomat has said Pyongyang is also open to having talks with Washington under the right conditions.

Moon’s envoy to China, former prime minister Lee Hae-chan, arrived there on Thursday with a letter from Moon to Chinese President Xi Jinping.

Before leaving, Lee said a summit between Xi and Moon could happen as soon as July, on the sidelines of a Group of 20 meeting in Germany. A separate summit could also be held the following month, Lee said.

Speaking to Lee, Chinese Foreign Minister Wang Yi said there had been some “undeserved setbacks” in relations this year, in apparent reference to THAAD.

“We hope the new government will correct the problems that we have encountered and take effective measures and positions as soon as possible to remove the obstacles that have been placed on the road to good relations between our two countries,” Wang said in comments in front of reporters.

“This is the desire of our two peoples but also our governments,” Wang added. “We believe South Korea will bring clear measures to improve relations.”

China’s Foreign Ministry, in a later statement on its website, said Wang “fully explained” China’s position on THAAD and asked South Korea to handle China’s reasonable concerns appropriately.

“China is willing to make efforts with all sides, including South Korea, to take even more practical efforts and uphold resolving the nuclear issue on the peninsula via dialogue,” the ministry cited Wang as saying.

Moon has sent envoys to the United States, China, Japan and the European Union this week in what the government calls “pre-emptive diplomacy”. His envoy for Russia will leave next week.

(Additional reporting by Ben Blanchard in BEIJING; Editing by Nick Macfie, Robert Birsel)

South Korea’s Moon says ‘high possibility’ of conflict with North as missile crisis builds

FILE PHOTO: North Korea's leader Kim Jong Un watches a military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS/File Photo

By Christine Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Wednesday there was a “high possibility” of conflict with North Korea, which is pressing ahead with nuclear and missile programs it says it needs to counter U.S. aggression.

The comments came hours after the South, which hosts 28,500 U.S. troops, said it wanted to reopen a channel of dialogue with North Korea as Moon seeks a two-track policy, involving sanctions and dialogue, to try to rein in its neighbor.

North Korea has made no secret of the fact that it is working to develop a nuclear-tipped missile capable of striking the U.S. mainland and has ignored calls to halt its nuclear and missile programs, even from China, its lone major ally.

It conducted its latest ballistic missile launch, in defiance of UN Security Council resolutions, on Sunday which it said was a test of its capability to carry a “large-size heavy nuclear warhead”, drawing Security Council condemnation.

“The reality is that there is a high possibility of a military conflict at the NLL (Northern Limit Line) and military demarcation line,” Moon was quoted as saying by the presidential Blue House.

He also said the North’s nuclear and missile capabilities seem to have advanced rapidly recently but that the South was ready and capable of striking back should the North attack.

Moon won an election last week campaigning on a more moderate approach towards the North and said after taking office that he wants to pursue dialogue as well as pressure.

But he has said the North must change its attitude of insisting on pressing ahead with its arms development before dialogue is possible.

South Korean Unification Ministry spokesman Lee Duk-haeng told reporters the government’s most basic stance is that communication lines between South and North Korea should reopen.

“The Unification Ministry has considered options on this internally but nothing has been decided yet,” said Lee.

NO WORD YET ON THAAD

Communications were severed by the North last year, Lee said, in the wake of new sanctions following North Korea’s fifth nuclear test and Pyongyang’s decision to shut down a joint industrial zone operated inside the North.

North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North defends its weapons programs as necessary to counter U.S. hostility and regularly threatens to destroy the United States.

Moon’s envoy to the United States, South Korean media mogul Hong Seok-hyun, left for Washington on Wednesday. Hong said South Korea had not yet received official word from the United States on whether Seoul should pay for an anti-missile U.S. radar system that has been deployed outside Seoul.

U.S. President Donald Trump has said he wants South Korea to pay for the Terminal High Altitude Area Defense (THAAD) anti-missile system which detected Sunday’s test launch.

China has strongly opposed THAAD, saying it can spy into its territory, and South Korean companies have been hit in China by a nationalist backlash over the deployment.

The United States said on Tuesday it believed it could persuade China to impose new U.N. sanctions on North Korea and warned that Washington would also target and “call out” countries supporting Pyongyang.

Speaking to reporters ahead of a closed-door U.N. Security Council meeting, U.S. Ambassador to the United Nations Nikki Haley also made clear that Washington would only talk to North Korea once it halted its nuclear program.

As about Haley’s comments, Chinese Foreign Ministry spokeswoman Hua Chunying said China would work hard at reducing tensions on the Korean peninsula and finding a peaceful resolution.

Trump has called for an immediate halt to North Korea’s missile and nuclear tests and U.S. Disarmament Ambassador Robert Wood said on Tuesday that China’s leverage was key and Beijing could do more.

Trump warned this month that a “major, major conflict” with North Korea was possible, and in a show of force, sent the Carl Vinson aircraft carrier strike group to Korean waters to conduct drills with South Korea and Japan.

The U.S. troop presence in South Korea, a legacy of the Korean War, is primarily to guard against the North Korean threat.

(Additional reporting by Michelle Nichols at the UNITED NATIONS and Ben Blanchard in BEIJING; Editing by Nick Macfie)