Ex-CEO takes over as South Korean president

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NORTH TIES

On his likely biggest diplomatic challenge - how to deal with North Korea - the new president said relations between the two must be more productive and repeated past pledges to help his communist neighbour raise its economy only if it ends its nuclear weapons programme.

"Together, the leaders of the two Koreas, must contemplate what they can do to make the lives of all 70 million Koreans happy and how each side can respect each other and open the door to unification.

"If it is to discuss these issues, then I believe the two leaders should meet whenever necessary and talk openly, with an open mind."

There was no North Korean representative at Lee's inauguration and its state media has made no direct mention of the election of Lee who has made clear he thinks the outgoing government was too soft on the isolated North.

A father of four, Lee's rags-to-riches life story made it to two hit TV dramas about business heroes who raised the country out of the ashes of the 1950-53 Korean War.

He has had a bumpy ride since winning the election, clashing early on with one of the main labour unions and teacher groups.

He has also had settle for a compromise over his proposed cabinet after a fierce challenge from liberal MPs who still dominate parliament.

That is a situation Lee hopes will change in the April parliamentary election when his conservative party is tipped to win a majority that will give him the political muscle to push through new policy.

(Editing by Keiron Henderson and Jeremy Laurence)

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