President Lee Myung-bak said on Wednesday that North Korea should face reality and consider bringing about a “transformation,” adding that Seoul will monitor changes in the secretive North.

“Pyongyang has also come to a situation where it has to look straight at reality and consider a transformation,” he said in an address to mark the Liberation Day. “We will carefully watch for the possible changes,” Lee added.

The reclusive North’s struggling economy has been in decline for years and has been unable even in years of good harvests to feed its 24 million people.

Lee urged Pyongyang to give up its nuclear programs, embrace reform and open up to the outside world, saying the South is prepared to help the impoverished nation. Lee also said the South is open to dialogue with the communist nation.

“Denuclearization of the Korean Peninsula was agreed on between the South and North... It has to be strictly complied with as it also constitutes an international obligation under UN Security Council resolutions,” Lee said. “On the basis of it, the South, along with the international community, is ready and willing to help the North,” he added.

He reiterated South Korea will continue to make preparations for unification with North Korea.

“The ultimate consummation of our liberation consists in national unification. National reunification will be the springboard of a truly greater Republic of Korea,” he said in an address to mark the Liberation Day.

Expressing worries about the polarization between the rich and the poor, he said the government needs to focus on creating jobs and breaking down education barriers.

Lee called for support from across society to overcome economic difficulties, saying the situation triggered by the eurozone debt crisis is more serious than anticipated, and it could take more time than originally projected for the global economy to turn around.

“In addressing the current global crisis, the government efforts alone will not suffice,” Lee said. “Collaboration of all economic entities, including businesses, is urgently needed. Business leaders are well advised to continuously increase investment and employment without being intimidated.”

Lee said his administration will do its best to energize the economy and stabilize the livelihoods of ordinary people.

“A politician has a fixed tenure, yet the duties of taking care of the economy and everyday lives of the public must continue without stopping,” he said.

(From news reports)