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South Korean President Roh Moo-Hyun has said that North Korea's nuclear test was forcing a change in his policy of engagement with the communist country.
Roh said his government was losing its momentum for continued dialogue due to international calls for sanctions and pressure.
“Under these circumstances, the government will find it difficult to stick to its engagement policy towards North Korea,” Roh said. “We must not give up (dialogue) but the situation is changing.”
He condemned North Korea's nuclear test as a grave threat to peace in Northeast Asia and a betrayal of the hopes of South Koreans.
The president, who had pursued a “sunshine policy” of engagement with the North, said the South “will sternly deal with the issue of North Korea's nuclear testing through close international cooperation.”
The test will seriously affect relations between the two Koreas, he said.
“This is a grave threat to peace, not only on the Korean peninsula but in the region,” Roh said in his first response to the North's announcement which shocked the world.
“This is also a betrayal of the hopes of the Korean people for the denuclearization of the Korean peninsula.”
North Korea depends heavily on trade and aid with the South.
South Korea's aid to North Korea in 2005 reached 365 million dollars, according to the Unification Ministry. Trade with North Korea reached 1.1 billion dollars last year.
Two joint projects, the Kaesong industrial complex and the Kumgang resort, have earned the North 100 million dollars since they started up, analysts say.
South Korea was also the second biggest food aid donor to its neighbour in 2005, after China.
Roh said his government would respond in a responsible, careful way.
“The military is well prepared for any kind of provocative acts (by the North),” he added, and the government would do its utmost to minimize the fallout on the economy.
“I ask you, the people, to remain calm and continue with your business as usual.”
“What is the most important thing is we have to take cordinated policies.”
Roh said he and visiting Japanese Prime Minister Shinzo Abe were in accord.
“There were no differences between me and the Japanese prime minister on this issue. We agreed that we have to deal with this issue in a cool-headed manner. Coordinated responses within the UN and other countries are also required.”
He added: “Japan will immediately start studying stern measures against North Korea. We will also make efforts to have the international community take strong measures against North Korea.”
Inter-Korean relations, he said, would be significantly affected by the test and the contents of the “common and broad approach” to the North would be changed.
Roh and US President George W. Bush, at a summit last month, agreed on the approach to try to lure the North back to stalled multinational disarmament talks.