President Lee Myung-bak and Chinese President Hu Jintao discussed North Korea’s nuclear issue during a summit in New York on Wednesday, Korean time.

During the talks, Lee outlined his proposed “grand bargain” on the North Korean nuclear issue.

The package deal entails dismantling key aspects of North Korea’s nuclear program through the six-party talks and at the same time providing the North with a security guarantee and international aid.

Lee said the bargain would flexibly address inter-Korean issues while at the same time supporting the North in stabilizing its government and providing Pyongyang with massive economic aid in the event it abandons its nuclear ambitions.

Lee reiterated that resolving the North’s nuclear issue is a precondition to improving inter-Korean relations.

In response, the Chinese leader said he believes the North could return to the six-way nuclear talks if related parties continue to work to persuade Pyongyang, noting that the North has recently expressed its willingness to engage in both bilateral and multilateral talks to resolve its nuclear issue.

Hu said he supports the idea of convening Group of 20 (G20) summits regularly. In particular, he said he supports the idea of South Korea hosting the next G20 summit in 2010.