S. Korea, China Agree to Establish Full Ties

South Korea and China, formally ending more than 40 years of hostility, have agreed to establish diplomatic relations, according to reports from Seoul.

South Korean Foreign Minister Lee Sang Ok will fly to Beijing on Sunday for talks on “normalization of relations,” the South Korean and Chinese governments officially announced today. South Korean officials and Western diplomats have said privately that Lee will sign a diplomatic accord during his three-day visit.

Chinese troops fought alongside North Koreans against South Korean and U.N. forces in the 1950-53 Korean War. But in recent years Seoul has seen the potential for Beijing to serve as a moderating influence on North Korean behavior.

South Korea began aiming several years ago to strengthen national security through improved relations with the two Communist giants that were North Korea’s key patrons. The first half of this goal was achieved when Moscow established ties with Seoul in 1990.

Even without diplomatic relations, South Korea and China have seen rapidly expanded trade, which exceeded $5.8 billion last year. Two-way trade is expected to top $10 billion this year.

For China, formal ties with Seoul are likely to bring not only additional private investment but also low-interest loans that could run in the range of $2 billion or more.

Until now, Seoul has recognized the Nationalist government in Taipei as the legitimate government of all China, including both Taiwan and the mainland. The Nationalists relocated their government to Taipei in 1949 after losing a civil war to the Communists on the mainland.

Beijing views Taiwan as a breakaway province of China and insists that no nation having diplomatic relations with Beijing can also maintain formal ties with Taiwan.

Seoul said today that it would downgrade relations with Taiwan to a non-official level. Diplomats said Taipei is expected to sever ties with South Korea within 24 hours.

Prospects that this would happen have provoked some anger in Taipei. In an incident a few days ago, about 20 people burned a South Korean flag outside the South Korean Embassy and shouted “Koreans go home!”

In the first six months of this year, Taiwan ran a $543-million deficit in its trade with South Korea. Once Seoul cuts diplomatic ties, trade tensions could escalate.

Ma Ying-jeou, deputy director of Taiwan’s Mainland Affairs Council, declared Friday that by insisting that Seoul break relations with Taipei, Beijing is endangering the growing economic contacts between Taiwan and the mainland.

“This is an extremely unfriendly move . . . and will make it more difficult for us to upgrade relations” with China, Ma said.