Lee is the first South Korean president to visit Myanmar, previously known as Burma, in 29 years since North Korea's 1983 deadly terrorist bombing targeted then South Korean President Chun Doo-hwan visiting Myanmar's old capital of Yangon also known as Rangoon.

Chun escaped the attack as the bomb ripped through a Rangoon memorial before his arrival there. But 17 South Koreans, including Cabinet ministers, and four Burmese officials were killed. Myanmar immediately cut off diplomatic relations with North Korea, though the ties were restored in 2007.

Lee's plan to visit the Southeast Asian nation has been kept under tight wraps until the last minute due to security concerns stemming from the memories of the terrorist bombing, coupled with a spike in North Korea's menacing rhetoric against Lee in recent weeks.

During summit talks later Monday, the two leaders are expected to discuss ways to strengthen economic and trade cooperation, share South Korea's economic development experience with Myanmar and expand cooperation in energy and resources development and other areas.

Lee could also discuss ways to cut off military cooperation between Myanmar and North Korea.

The visit also drew attention over whether Lee will meet with democracy icon Aung San Suu Kyi.

Myanmar has won international praise for taking a series of sweeping political and economic reform measures since the country's new government of general-turned-President Sein took power last year after decades of military rule.

His government has released hundreds of political prisoners, relaxed press censorship and sought reconciliation with Suu Kyi and her National League for Democracy party (NLD). In a by-election held last month, the NLD won a landslide victory, and the 1991 Nobel Peace Prize winner was also elected to parliament.

These moves led to the United States and the European Union easing some sanctions.

Suu Kyi has been a symbol of Myanmar's democracy movement.

Military rulers have repeatedly put her into house arrest, considering her a threat to their autocratic rule. She spent much of the past 20 years under house arrest and was last released in late 2010.

Lee's trip to Myanmar is seen as an effort by South Korea to reach out to an underdeveloped nation with rich natural resources and growth potentials. About three times the size of the Korean Peninsula, the country has one of the world's largest natural gas reserves and big deposits of iron ore, zinc, nickel and other mineral resources.

Myanmar is also considered a strategic foothold linking huge markets in nearby China and India. Though one of the world's poorest nations, with the annual per capita income of US$700, Myanmar has a high literacy rate and could provide cheap, but quality labor for companies.

With a population of 58 million, the country could also become a good market itself.

The government of President Sein has expressed a strong desire for economic development, scrapping a fixed exchange rate system and taking other steps to draw foreign investment. (Yonhap News)