AP reports:

SEOUL, South Korea — South Korea's president vowed Monday not to let North Korea "covet even an inch of our territory." But he also opened the door to possible peace talks, saying North Korean disarmament could lead to South Korean economic aid.

Lee Myung-bak, addressing the country in a New Year's speech, said the Nov. 23 shelling of Yeonpyeong Island, which killed four and has spiked fears of war, was a transformational event. Seoul, he said, would treat it as the United States did the Sept. 11, 2001, terrorist attacks and "overhaul our defense posture."

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