South Korean President Lee Myung-bak Friday called for all-out efforts to boost the slumping economy, vowing what he called "diversified" efforts to create jobs and a stronger drive to reform the country's state-run businesses, according to Yonhap News.

The call came as part of his four-point policy objectives that also include improved ties with North Korea, which Thursday blamed Seoul's "anti-unification forces" for soured relations between the divided Koreas in an annual government editorial for the New Year.

Lee said his government will continue to deal with the communist nation "calmly" and "flexibly."

"I am fully prepared and ready to talk with North Korea at any time and to cooperate as a partner," the President was quoted as saying in his nationally televised New Year address.

Lee's New Year message, however, largely focused on economic reform measures as he noted the country, as well as the rest of the world, faces an economic crisis whose end remains unknown.

"As no country and no person were able to accurately predict the start of this worldwide economic crisis, no one can definitely say when it will end," Lee said. "There is a forecast that it will start to get better in the latter half of this year. I will do my best to make sure this positive outlook will come true."

Lee pinpointed the most urgent issue as employment.

The Chief Executive said the government will actively support small- and medium-sized firms that try to keep their employees or create more jobs, noting three quarters of the salaries paid to workers placed on temporary leave due to the slowing economy will be shouldered by the government.

"This is not a time to criticize without any suggestions for a solution or remain an onlooker, but to actively join our strengths. We must work with hope and courage to join all our energies to overcome the economic crisis at the earliest possible day," Lee said.

He also vowed to pay close attention to the livelihood of ordinary citizens, saying the government will do its utmost to make sure the quality of life of ordinary citizens, or people in the low-income bracket, is not threatened by the ongoing economic downturn.

Still, Lee said the government will continue to take stronger reform measures to shed what he called "excessive weight," including workers at state-owned firms.

Turning to inter-Korean issues, Lee said it is now time for Pyongyang to "accurately" understand the changes in the environment and start cooperating with the South.

"North Korea must now give up its outdated practice of trying to create tension among South Koreans and become more cooperative," he said.

North Korea has refused to work with the South Korean administration since Lee was inaugurated early last year, accusing Lee of collaborating with hawkish U.S. imperialists who have long sought to topple Pyongyang's communist regime.

Virtually all official dialogue between the two Koreas has been cut off, while the communist North has also implemented stricter border controls, significantly reducing the number of South Koreans allowed to enter the communist nation for tourism or business.