seize a "good chance" to improve relations, as the two sides prepare
for talks aimed at easing months of high tensions.
Lee, in his first direct response to recent peace overtures from
Pyongyang, also did not rule out a summit with the North's leader Kim
Jong-Il.
"We can hold a summit if necessary... this is a good chance for North
Korea," he said on Tuesday, in a televised interview.
The two sides agreed last month to hold high-level military dialogue.
Seoul has proposed preparatory talks on February 11, in what would be
their first contact since Pyongyang's deadly shelling of a border
island last November.
The working-level talks are aimed at setting the date, place and
agenda for the high-level military dialogue.
But Seoul says the high-level meeting will only go ahead if Pyongyang
takes responsibility for two attacks last year and promises no
repetition.
Apart from the shelling of Yeonpyeong island, which killed four people
including civilians, the South accuses the North of torpedoing a
warship last March with the loss of 46 lives -- a charge the North
denies.
Lee said a "strong response" to provocations could prevent any
repetition. "I have great expectations that this may be time for North
Korea to change," he said.
"If the North shows willingness for sincere dialogue instead of
military provocations, we can hold inter-Korean dialogue, economic
exchanges and talk about the six-party talks."
The six-nation negotiations on the North's nuclear disarmament --
grouping the two Koreas, China, the United States, Russia and Japan --
have been stalled for more than two years.
The US, South Korea and Japan say the North must improve cross-border
ties before they can resume.
Lee also expressed regret that the two Koreas are spending an
"enormous budget" on an arms race.
He said the North could probably overcome its persistent food
shortages if it cut its defence budget by 20-30 percent.
