S Korea will reconsider its engagement with North

SEOUL, Oct 10 (Reuters) South Korea will reconsider its policy of engagement with the North following Pyongyang's announcement it had tested a nuclear device, President Roh Moo-hyun was cited as saying today.

''It's true that with the situation now, a reconsideration of our engagement policy is needed,'' a presidential spokesman quoted Roh as saying.

South Korea stepped up its economic, political and humanitarian contacts with North Korea after the unprecedented and unrepeated summit meeting of their leaders in 2000 under the belief more contact would ease the way to eventual unification.

The so-called ''sunshine policy'' has provided a steady stream of cash and aid for Pyongyang's leaders and led a branch of the South's Hyundai Group to open a mountain resort and an industrial park in the North.

But it has come under criticism from key allies, the United States and Japan, which want a tougher approach. Roh has also been heavily criticised at home for the policy started under his predecessor for bringing no tangible results to the South.

Roh suggested the government may also have to alter its policy on how it supports the resort and industrial park, the only two areas in the North that ordinary South Koreans can easily visit.

But Roh's unification minister, an advocate of a soft approach in dealing with the North, told a parliamentary hearing he did not think the engagement policy should be discarded.

Analysts have said because of its cultural ties to the North and being directly in the firing line of its massive military, South Korea has few alternatives other than engagement.

North Korea has been happy to receive handouts, but has given little in return, they said.

REUTERS LL VC1035