Lee proposes 3-step reunification with NK

President Lee Myung-bak on Sunday proposed a three-stage reunification with North Korea and the introduction of a "unification tax" to prepare for the huge financial burden expected if the two Koreas are reunited.

"Today inter-Korean relations demand a new paradigm," Lee said in his speech to mark the 65th anniversary of Korea's independence from Japan's 1910-45 colonial rule.

"It is imperative that the two sides choose coexistence instead of confrontation, progress instead of stagnation. The two of us need to overcome the current state of division and proceed with the goal of peaceful reunification."

Toward that goal, the two Koreas first should form a "peace community" that assures security and harmony on the peninsula, Lee said, adding that denuclearization of the communist neighbor is of the utmost importance.

"The next step is to carry out comprehensive inter-Korean exchanges and cooperation with a view to developing the North's economy dramatically. The result will be an economic community in which the two will work for economic integration," he said.

After this, the two Koreas can remove the wall of different systems and establish a genuine community, where freedom and basic rights of all Koreans are guaranteed, Lee pointed out.

He also said Seoul and Tokyo should seek "concrete measures" to develop a new relationship, transcending the painful history of Japan's colonization of Korea that ended decades ago.

Lee positively assessed Japan's efforts to improve ties with South Korea shown in Prime Minister Naoto Kan's statement last week, which apologized for Tokyo's 1910-45 colonization and admitted it was against the will of the Korean people.

"I have taken note of Japan's effort, which represents one step forward," Lee said in his Liberation Day speech broadcast live.

The president then stressed the importance of putting words into action.

"However, there still remain issues that have to be resolved. The two countries are called upon to take concrete measures to forge a new relationship for another 100 years," Lee said. "The two nations should never forget history, while at the same time working together to develop a new kind of future. This is the way and direction Seoul and Tokyo have to take."

Lee urged the National Assembly to begin work to revise Constitution and change electoral system.