Despite a range of difficulties facing its economy, South Korea remains confident of becoming a fully developed economy on a par with other industrialized nations, Seung Soo Han, former deputy prime minister and minister of finance and economy of South Korea, said June 27.

Speaking at the Foreign Correspondents' Club in Tokyo, Han said that South Korea is now undergoing "growing pains," facing a cyclical downturn of the economy, a deterioration of its trade balance and structural problems. However, he said, "The Korean economy ... has faced many tough challenges in the past and has overcome each hurdle to become what it is today."

Han, a National Assembly member belonging to the ruling party, said that the government is determined to take every necessary step to overcome challenges. He said that Korea's recent participation to the Organization for Economic Cooperation and Development has come with duties and obligations.

"But it should not be thought ... that these commitments are a kind of price that we pay to gain international status and recognition. To the contrary, we have opted for free trade and an open economy because it is in our own interest," he said. "Our mid- to long-term outlook remains bright," he said.

"I am confident to say that Korea's fundamental economic strength remains unchanged and undiminished and the people's determination to reach the level of our wealthier OECD partners, whatever sacrifices may be required, is as strong as ever," he said.

Turning to the issue of North Korea, Han said, "The important (thing) is that North Korea, knowing that its economy is in shambles, has to come to the table to talk with us directly." He said that aspirations for the reunification of North and South are very strong and whatever the cost may be, people in both North and South will welcome it.

However, he said the cost of reunification will be too enormous for South Korea alone to bear. "We will need very close cooperation from our allies -- the United States, Japan, and European countries -- and international economic organizations," he said.