Anchor: President Lee Myung-bak told the nation during his New Year's address that South Korea has left open a window of opportunity to create a new era in inter-Korean relations despite the North's tough stance toward the South. He says he hopes for a genuine change in the North's attitude. Our Kim In-kyung has more.

Report: President Lee Myung-bak said during his New Year's address that the situation on the Korean Peninsula has entered a transitional period, and the most important goal for the government at this moment is peace and security.

Lee said he hopes 2012 will see a turning point in solving the North's nuclear problem and the resumption of the six-party nuclear talks. He also reiterated that South Korea will maintain tight security as long as there is the potential of provocation by the North, and the South will respond strongly if provoked.

Regarding the economy, the president said the government's key economic goal this year is to stabilize the working class as the global economy remains weak. He said the government will rein in inflation at the lower three-percent range this year. And to help families with college students, the government will supply ten-thousand rental houses for students before the new semester begins in March.

The president also vowed to create more jobs, saying the government will invest more than 10 trillion won to create more than 70-thousand jobs that the young generation prefers. He also said the government will increase employment in the public sector to 14-thousand people this year. Moreover, in order to increase the number of people who get jobs right out of high school, 20 percent of the people hired by the public sector this year will hold high school degrees.

Lee also expressed regret over the controversy that arose regarding his private residence and the corruption investigation of his relatives and aides. He said he will look back upon himself and correct what is wrong in order to manage his surroundings more thoroughly.

He said the government will be fair in managing the general and presidential elections to be held in April and December of this year.

Kim In-kyung, KBS World Radio News.