Pres. Lee Expects G-20 Summit to Set FX Guidelines

President Lee Myung-bak said Wednesday that he expects G-20 leaders to agree on concrete guidelines on ending currency conflict and reducing trade imbalances in next week’s summit in Seoul.

“How to set the guidelines will be discussed at the summit,” he told about 160 domestic and foreign journalists in a news conference at the presidential office. “The leaders agreed to set the guidelines for current account positions at the summit, following up on an agreement reached at the Oct. 22-23 meeting of G-20 finance ministers in Gyeongju.”

“I believe that even the U.S., European nations and China, which are feuding over foreign exchange rates, can move a step forward and reach a compromise through discussions."

President Lee also said he expects G-20 leaders to come up with 100 action plans at the summit to help developing nations, a new agenda item proposed by Seoul. "Concrete action plans should be adopted to help developing nations nurture their growth potential and stand on their own feet in going beyond simple financial aid," he said.

On plans to narrow the developmental gap between the two Koreas, he said, “North Korea is still an impoverished nation but can benefit from G-20 support for development of impoverished nations if it adopts Chinese-style reforms and opens its market. Seoul is also willing to help Pyongyang, but this is entirely up to North Korean authorities."

On the explosion at a South Korean-operated oil pipeline in Yemen Tuesday, which al-Qaeda claimed to have caused, President Lee downplayed its effect on the summit.

“There’s been no confirmation that a terrorist group was involved,” he said. "I don’t think North Korea will take inappropriate action at a meeting where global leaders will gather and deal with world economic issues.”

Yet President Lee said Seoul is taking full security measures against possible attacks by the North and terrorist groups before and during next week’s summit.

yongari@donga.com