South Korean President Lee Myung-bak on Wednesday, February 22 reiterated that he is open to talks with North Korea to ease tensions on the Korean Peninsula if the communist country shows it is sincere in improving relations, The Wall Street Journal reported.

"Our key policy goal is to ensure peace and stability on the Korean Peninsula. There's nothing to gain if tensions rise," Lee said in a press conference held to mark the fourth anniversary of his inauguration. "I'm open to talks if the North comes forward with sincerity."

His comments come as the geopolitical situation on the peninsula turned cloudy after the North's longtime leader Kim Jong Il died in December, and his son Jong Eun is in the process of consolidating power. Cross-border relations have been icy since Seoul accused Pyongyang of sinking a warship in March 2010 with the loss of 46 lives. The North also shelled a border island in November 2010, killing four South Koreans.

Lee said there are some signs of improvement in Greece's fiscal woes, which have driven the global economy toward another crisis, but that higher global oil prices arising from the risks in the Middle East are threatening to push up domestic prices.

The president said he feels "sorry" over a controversy in Korea over a free trade agreement with the U.S. He added a successful launch of the deal would help create jobs at smaller companies in Korea.

The main opposition Democratic United Party has been ramping up their campaign against the Lee administration over its unilateral ratification of the FTA with the U.S. late last year. The opposition party claims the trade pact favors the U.S.

The trade accord, which is set to take effect next month, was initially signed in 2007 under Lee's liberal predecessor Roh Moo-hyun and ratified in November last year.