UNDER SECRETARY SHERMAN: Thank you all for coming this afternoon. I am very happy to be back in Seoul. It’s been a while and I have missed being here. The Republic of Korea is at the center of our forward-looking agenda in the region. We cooperate with our R.O.K. partners in virtually every area of endeavor. 2014 was in many ways a banner year for the U.S.-R.O.K. relationship. We completed two agreements that further modernized the structure of the U.S.-R.O.K. alliance. We agreed to the conditions-based approach to the transition of wartime operation control, or OPCON, which will ensure that our combined forces will be ready and able to provide the best possible defense for the Korean people. We also concluded a new Special Measures Agreement by which the R.O.K. contributes to a stable stationing environment for U.S. Forces Korea.

These agreements are importance because, as we’ve seen firsthand in recent weeks and in years past, the North Korean threat remains real. That threat includes North Korea’s nuclear weapons and missile programs. It includes the risk of conventional and cyber-attacks. Let me ensure you that in the face of these serious dangers, the United States and the R.O.K. are united.

The U.S.-R.O.K. alliance is also evolving to meet global challenges, as well, that affect us all; from climate change to the Ebola epidemic, from energy security to ISIL. We welcome South Korea’s increasing engagement with addressing these and other global challenges, which bolsters the R.O.K.’s status as an important player on the world stage and further deepens our global partnership.

Meanwhile the U.S.-Korea Free Trade Agreement demonstrates our commitment to deepening economic engagement in the Asia Pacific. We welcome South Korea’s interest in the Transpacific Partnership. While we are focused right now on concluding a high standard TPP with current members, as with other countries who have expressed interest in TPP, we are conducting consultations regarding meeting the high TPP standards, as well as seeking to address outstanding bilateral issues of concern, including the full implementation of existing obligations.

Finally, I want to note that this year marks the 70^th anniversary of several significant events that took place in 1945: the end of World War II, Korean independence, and very regrettably, the division of the Korean Peninsula. In addition, the R.O.K. and Japan will reach the 50 year mark of their establishment of diplomatic relations. With respect to their relationship, we believe that the parties all have a strong interest in working together and handling commemorations this year in a way that truly promotes reconciliation. The fact is that all of us around the world have a huge stake in cooperation in Northeast Asia. And with that, I’ll be glad to take your questions.

QUESTION: I covered you when you visited South Korea 15 years ago when you were Special Envoy so I think that you are one of the most specialized professional who can deal with North Korea. So can you elaborate, why President Obama hint that North Korea collapse. What do you think encouraged President Obama talk like this? “You will see a regime like this collapse.”

UNDER SECRETARY SHERMAN: So I think that all of the five parties to the Six-Party Talks, the sixth is North Korea of course believe that the primary goal of those talks is the denuclearization of the Korean Peninsula and the denuclearization of North Korea. To achieve that we have both put pressure on as well as made it clear that dialogue is possible if North Korea is serious in concrete ways about denuclearization. President Park has put a hand out to offer dialogue to North Korea and we fully support President Park’s efforts to do that. Similarly I think we all understand that over time, the sustainable answer to denuclearization is the unification of the Koreas. So that there is one Korea, because there is one Korean people. With that reunification, we would be able to ensure that there are no nuclear weapons. So I think that what the President was talking about was both the common policy that we all have as well as the reality that a country that denies the human rights of its citizens, that starves them from food and a future, that has no economy to speak of, that is isolated from the rest of the world, will not last forever.

QUESTION: So do you agree with President Obama’s comments.

UNDER SECRETARY SHERMAN: Of course I agree with my President’s comments.

QUESTION: So there are many ways to achieve reunification, so sometimes can be collapse or sometimes through engagement. Mr. Obama hinted that through collapse it is easier to have the reunification of the Korean Peninsula. Is that what he means or you mean?

UNDER SECRETARY SHERMAN: No I think all the President was doing or saying was that a country that, as I said, starves its people, both in food and a future, that is isolated from the rest of the world, that has no economy to speak of, is not going to survive over time, nothing more, nothing less.

QUESTION: So the U.S.G does not want to speed the collapse of the [North Korean] regime.

UNDER SECRETARY SHERMAN: The United States’ objective is the same objective that the Republic of Korea has, that all of the partners, all of the five partners of the Six-Party Talks have and that is the denuclearization of the Korean Peninsula and the denuclearization of North Korea.

QUESTION: So my name is Lee Mi-sook from Munhwa Daily Newspaper. It was reported in Yonhap this morning that there is no daylight between the two governments. But Korea is not part of the founding member of the TPP and we’re not actually participating in any of the sanctions towards Russia either because we are mindful of China, and in spite of the UN sanctions, there are some movements that the R.O.K. might ease the sanctions on Mount Kumgang tourism. So there’s potentially elements of conflict here. Because you’re in charge of political affairs at the State Department, you must have addressed all these issues and I was wondering what President Park’s position on visiting Russia this year is in spite of the fact that South Korea is not participating in any of the sanctions that have been imposed on Russia. And at the same time what is your position on North Korea resuming the Mount Kumgang tourism?

UNDER SECRETARY SHERMAN: When we say there is no daylight between us, that is at a policy level. That doesn’t mean we’re identical. We are two different countries with sometimes different interests but our policy towards North Korea is absolutely identical and there is no daylight between us on that policy, and that was what that comment was referring to.

In terms of TPP, we welcome Korea’s interest in TPP. Korea did not make an indication it was interested until some of the other countries had moved forward with negotiating this high value TPP but we are in consultations with Korea and trying to work with them to deal with bilateral concerns so that when the moment comes, if they want to join TPP, we can figure out how to work that process. On sanctions on Russia, different countries have made different decisions. We would urge all countries including the R.O.K. to look at sanctions on Russia given the actions, particularly now in eastern Ukraine and Russia’s efforts to annex Crimea which was to take away the sovereign territory of another country. But that is not to say we don’t work with Russia on some things. We each have a complicated relationship. I lead our negotiations on Iran and Russia is a full partner. We work very closely with Russia on D.P.R.K. policy. But when it comes to Ukraine, we have very, very different approaches.

Where it’s concerned about whether President Park should go to Russia or whether Mount Kumgang should be started again, I’m not aware that Korea’s considering any economic development at this point. But I leave those decisions to President Park.

QUESTION: Yi Yong-in from Hankyoreh. There are a lot of press reports about Kim Jong-un’s visit to Russia this year. I was wondering if President Obama also plans to visit Russia on the occasion of the 70 anniversary of the end of World War II. If President Obama doesn’t go, but President Park goes, would that put the United States on the spot?

UNDER SECRETARY SHERMAN: I think these are all many hypothetical questions that we will have to wait and see the answers to.

QUESTION: Park Seung-hee from JoongAng Ilbo. Let me go back to President Obama’s interview. He mentioned that through cyber means and also through the Internet, we might bring about the collapse of North Korea. But he ruled out any military options, so does that mean that the United States has abandoned military sanctions and will continue on with economic sanctions as it has in the past. What’s the position on the military option here?

UNDER SECRETARY SHERMAN: I think that you should take President Obama’s words as his words and I don’t have anything to add.

QUESTION: Two questions, with the Sony Entertainment hacking incident, we have heard that Congress has become more hardline. Is there any possibility that North Korea will be re-listed on the list of state sponsors of terrorism. Second question, since the announcement of the Executive Order by the President, there were hints that additional actions might ensue. Is there anything that’s going to be announced anytime soon?

The hacking of Sony was a very, very serious act on the part of the D.P.R.K. and I think it has added one more concern to the threats that the D.P.R.K. poses not only to the United States but to the world. In terms of state sponsorship of terrorism, there are very specific requirements to re-list someone. That is under review as it always is with anyone around the world and we will have to see whether there is the basis, and they have to stand up under very strict standards, whether there is a basis that North Korea has been a state sponsor of terrorism for a period of time in multiple fashion. So it’s a review process ongoing right now to look at that. We did indeed, the President signed a new Executive Order, that allows us to designate government officials and entities with the assumption that they had something to do with this and several were as you know. There may be additional designations in the future and the U.S. has other tools to deal with our concerns.

QUESTION: Three questions on Moscow, the possible meeting between President Park and Kim Jong-un in Moscow. You said that this was a hypothetical question and we need to wait and see. To me, you sounded as though you are skeptical about their potential meeting. Am I correct in my assessment? Second question, did you talk about the possible meeting of President Park and Kim Jong-un in Moscow with the South Korean officials during this visit? And third question is, how would it feel different if the two had met in Moscow and if the two had met here on the Korean Peninsula?

UNDER SECRETARY SHERMAN: I meant nothing by my statement except the fact that we have no idea. I don’t know. You don’t know. And I assume that no decisions have been finally taken within the government but I don’t know. It was neither on one side or the other. Skeptical or optimistic or pessimistic. It was nothing other than a statement of fact. We don’t know. And whether it would be different meeting in Moscow or meeting on the Korean Peninsula, I don’t have a particular comment about that, because again these are hypothetical situations would be totally about the context in which they took place. And it remains to be seen whether any of those things will happen.

QUESTION: Can we assume one of the contexts is President Putin arranging or mediating the meeting between the two leaders?

UNDER SECRETARY SHERMAN: I have no idea.

QUESTION: Just want to ask you one question about your perception of North Korea. You have worked on North Korea for more than 25 years. When you worked on Clinton Administration, I thought that you were kind of like a dove. You tried to engage on North Korea. It is true that you have changed a little bit towards North Korea? You’re now a little bit of hardliner or something like that?

UNDER SECRETARY SHERMAN: Engagement is not the act of a dove. Engagement is the act of seeing if you can find a peaceful resolution to a very difficult problem and a threat. I don’t think I’m any more or less hardline than I was then. What North Korea is doing by developing nuclear weapons is wrong. What North Korea does in terms of not acknowledging the human rights of its citizens is wrong. What North Korea does by terrorizing its own people is wrong. And what North Korea does by not allowing the Korea people to unify is wrong. That has always been the case and I think the world would prefer a peaceful resolution to this because as we know any military action would have potentially devastating consequences here on the Peninsula and in the world. But it isn’t about dove or hawk.

QUESTION: So two questions. President Obama has two years left before he ends his presidency so it’s about time he considers what kind of legacy he will leave with respect to North Korea. So do you have anything to comment on that? And the second question is about Korea-Japan relations. You came from China. The Chinese government’s position as well as that of President Park Geun-hye is that if Prime Minister Abe chooses to revise the Kono Statement and Murayama Statement on the occasion of the 70th Anniversary of the end of World War II, it will cause a serious impact in the region. So you will be traveling to Japan. So do you have any message concerning this particular area when you go to Japan to see Japanese officials?

UNDER SECRETARY SHERMAN: I think that President Obama very much wants to see what he can do working with others to deal with the threat of North Korea and he believes that it is critical that he do that first and foremost with the Republic of Korea, with Japan, China, Russia, to see if there is a way to resolve this in a peaceful manner. So that is what he is attempting to do.

On your second question, this is the 70th Anniversary of the end of the war, World War II. No one can ever forget history and we all learned from it, but we should also use this 70th year to look forward to a positive future that we can help create. Very aware that Korea and Japan are in discussions to come to a solution to reconcile the past. I think it is very good that that dialogue is taking place and whatever Korea and Japan decide is a solution that works for the two of them, will work for the United States. The only other thing that I would add to that is that we believe that the Kono and Murayama statements are important, and we expect that they will stand.

QUESTION: So North Korea has been saying that it will suspend its nuclear tests if R.O.K. and the U.S. suspend their military exercises. This sounds like a non-starter and yet for us to promote dialogue with North Korea, are you willing to make at least a small gesture that would seem as though you are reducing the size of the exercise or you’re modifying the exercise in some way or another so as to look that we seem to be more receptive of their demand?

UNDER SECRETARY SHERMAN: I actually heard what North Korea said not so much as an offer as it was a threat. That if we did not reduce or stop the exercises, they would conduct tests. So it is not only a non-starter, but there is nothing we should do to change these exercises which involve a multiple of nations and have gone on for literally decades.

MODERATOR: One last question.

QUESTION: Since you are deeply involved in the negotiations with Iran, you know that there is cooperation between Iran and North Korea and in the past Iranian scientists have participated in North Korea’s nuclear tests. And during P5+1 negotiations, would you be able to get

concessions from the Iranians that they will not pursue nuclear cooperation with North Korea as the United States has done with Myanmar, that Myanmar should no longer pursue cooperation with North Korea?

UNDER SECRETARY SHERMAN: As a matter of fact, I believe that and we believe that Iran should not be cooperating with North Korea. Having said that fact, I’m not going to discuss the details of the negotiations.

MODERATOR: Thank you all so much.

QUESTION: Secretary, are you ready to go to North Korea again?

UNDER SECRETARY SHERMAN: Who knows. I don’t think anyone is going to North Korea at the moment except I would hope that North Korea would take President Park up on her offer.