New york: President Lee Jae Myung declared on Thursday that North Korea has likely accumulated sufficient nuclear weapons to sustain its regime, while its intercontinental ballistic missile (ICBM) program nears completion. He emphasized South Korea's robust military capabilities and announced plans to increase defense spending.
According to Yonhap News Agency, Lee addressed global investors at the New York Stock Exchange, reassuring them of South Korea's commitment to reducing security risks on the Korean Peninsula. He highlighted the undervaluation of South Korea's stock market despite its strong economic and military status.
"North Korea seems to have secured sufficient nuclear weapons needed to maintain its regime, with only atmospheric reentry technology remaining for Pyongyang to complete the development of nuclear-tipped ICBMs capable of reaching the continental U.S.," Lee stated at the "Korea Investment Summit." He warned that if unchecked, Pyongyang could add 15-20 nuclear bombs to its arsenal annually.
Lee expressed concern over North Korea's potential to export weapons to other countries, suggesting that halting the production of nuclear warheads and the development and export of ICBMs would provide significant security benefits. He outlined a three-stage plan aiming for short-term cessation, midterm reduction, and long-term denuclearization of North Korea to promote peace on the peninsula.
He also underscored his administration's efforts to address security uncertainties and boost investor confidence. "The Korean market has been undervalued due to geopolitical risks from the inter-Korean military standoff. The new government will resolve this decisively," he said.
Lee highlighted South Korea's formidable military strength, noting its ranking among the world's top five and its defense spending surpassing North Korea's entire annual GDP. He mentioned the intention to significantly increase defense spending, independent of any requests from former U.S. President Trump.
In addition to security measures, Lee pledged to enhance corporate governance and eliminate unfair market practices to attract new capital to the Korean market. He announced plans for a third revision of the Commercial Act to improve governance further.
The summit featured participation from high-profile banking executives, including Citigroup CEO Jane Fraser, Goldman Sachs' Marc Nachmann, and JPMorgan Chase's Mary Callahan Erdoes. Top asset managers and private equity leaders also attended, alongside South Korean finance officials and corporate leaders.
Lee's engagement at the New York Stock Exchange marked the conclusion of his visit to the U.N. General Assembly, where he aimed to transform the "Korea discount" into a "Korea premium" for global investors. Earlier in the week, Lee met with BlackRock CEO Larry Fink to discuss AI and renewable energy collaboration, resulting in a memorandum of understanding to establish AI data centers in Seoul.
Additionally, Lee spoke with U.S. Treasury Secretary Scott Bessent to review trade negotiations and reiterated the importance of a currency swap arrangement to support Seoul's $350 billion investment pledge from July.