By Shim Jae-yun
Staff Reporter

President Roh Moo-hyun said on Friday he has hopes that the lingering North Korean nuclear issue will be resolved peacefully soon.

Roh also vowed to speed up the much-needed privatization of banks and restructuring of non-banking financial sector to enhance financial transparency.

``Despite some remaining problems, major barriers have been overcome regarding the nuclear issue and now I see hope,’’ Roh said during a keynote speech at an international conference at the Shilla Hotel in Seoul.

The conference was titled ``A New Vision and Strategy under Changing Leadership in Northeast Asia’’ and several VIPs were in attendance, including International Monetary Fund Managing Director Horst Koehler, Secretary General Donald Johnston of the Organization for Economic Cooperation and Development and former Australian Prime Minister Bob Hawke.

Roh’s comments come amid reported progress in talks aimed to find solution to the North Korean nuclear standoff in Beijing, where the six-party talks were extended for further discussion on the crucial nuclear matter.

North Korea and the United States engaged in direct negotiation.

``This means an unseen but considerable progress,’’ a Chong Wa Dae official said.

The official cited the fact that North Korea indicated its willingness to dismantle its nuclear weapons program and discuss the issue of highly enriched uranium (HEU) program while the U.S. revealed its intention to consider various steps in response to the North’s action.

Roh underlined the government’s will to continue to search for ways to achieve simultaneous development and prosperity of both Koreas by helping resolve the North’s nuclear issue peacefully and by pushing cooperative South-North economic projects, including the Kaesong Industrial Complex and the reconnection of the inter-Korean railroad.

Touching upon economic issues, Roh said his government will work hard to enhance management transparency in accordance with a three-year market reform plan which was finalized late last year, and to establish cooperate governance matching international standards.

``The legal framework governing the financial sector will be shaped in several functional categories to help enhance regulatory consistency and transparency,’’ he said.

He noted the Seoul government will take sweeping steps to do away with unnecessary regulations that restrict corporate investment while the transparency of all regulations will be improved and made cost-effective.

Roh also pointed to his government’s achievements in mediating labor relations, saying that the number of illegal disputes will be cut in half every year.

The president said the government will continue to push forward with ``proactive, open-door policies’’ to develop a business climate favorable to foreign enterprises.

``The government will push ahead aggressively with restructuring of vulnerable industries, which has been incomplete at best and which has thus hindered market opening. Among other things, the government’s proactive open-door policy aimed at persuading the interest groups, which have been raising objections to market opening,’’ he said.

jayshim@koreatimes.co.kr