Lee cautions against Washington's bailout of U.S. automakers

WASHINGTON, Nov. 17 (Yonhap) -- South Korean President Lee Myung-bak said that he supports the incoming U.S. government's move to bail out financially beleaguered U.S. automakers, but asked Washington to carefully choose the rescue method in order not to violate WTO rules.

In an interview with CNN broadcast on Monday, Lee also reiterated that he would
"welcome" and "support" a meeting between U.S. President-elect Barack Obama and
North Korean leader Kim Jong-il if Obama were to take such a step after taking
office.
"I want the U.S. automakers to survive the economic crisis, and that's more
advantageous to Korea," Lee was quoted by his spokesman as saying in the
interview, referring to a move by Obama and the Democratic Party to use part of
Washington's US$700 billion financial rescue fund to bail out troubled U.S.
automakers.
"But the U.S. government should give more serious considerations to the method of
auto industry bailout. A wrong protection of the auto industry could run counter
to the WTO rule and set a bad precedent. Then, other countries may follow the
example of the U.S. to directly subsidize their automakers."
Talking to Korean-American CNN reporter Alina Cho in the interview held after the
Group of 20 summit in Washington D.C., Lee also said that when he spoke with
Obama after the U.S. presidential election, Obama promised to consult with South
Korea before taking any major action on North Korea.
Lee and Obama held telephone talks on Nov. 7 and agreed to further reinforce the
two countries' bilateral alliance and to closely cooperate in addressing the
global financial crisis and the North Korean nuclear issue. They also shared the
view that a stronger alliance between South Korea and the U.S. would promote
peace and stability in Asia.
The agreement came after the Lee administration consistently warned North Korea
not to attempt to bypass South Korea through its direct diplomacy with the
incoming U.S. administration.
Asked about the political situation in North Korea, Lee said it seems that North
Korean leader Kim has not yet chosen his heir.
The president noted that there have not been major internal changes within North
Korea thus far, but his government is making full preparations for all possible
scenarios in the North.
"We're looking closely at changes underway in North Korea. We'll closely consult
the U.S. and other allies in preparing (for changes in the North)," the president
was quoted as saying.
Lee also told CNN he has high expectations for Obama, calling him "the right
leader at the right time." He said any damage done in recent years to U.S. global
leadership may be because the country relied too heavily on "hard power," and
that he believes Obama will be effective in utilizing "soft power."