Roh's comments were made during an emergency meeting of security-related ministers called in response to Washington's decision announced Monday to pull out more than 3,000 troops from South Korea to take up combat roles in Iraq.

"As the realignment of the US troops has long been expected, we have to remain cool-headed and take necessary steps to cope with it," Roh was quoted as saying by his spokesman.

"The goverment should consider steps needed to build up an independent defence system at an early date in cooperation (with the United States)."

Washington has insisted that its treaty commitments to the defense of South Korea would not be affected by the decision to dispatch 3,600 troops from front-line duty near the border with North Korea to Iraq.

The troop withdrawal is part of Washington's plans to transform the military into a leaner, more mobile fighting force to meet the changing security environment in the post-Cold War world.

It sparked concern here that it was the signal for deeper cuts that would harm South Korea's security at a time when a lingering stand-off over North Korea's nuclear weapons remains unresolved.

Roh urged ministers to reassure the public that security would not suffer as a result of US plans to revamp its arms forces.

"As the realignment of the US troops has long been expected, we have to remain cool-headed and take necessary steps to cope with it," he said.

He said that renewed efforts should be made to reduce tension on the Korean peninsula through talks to end the nuclear stalemate and by pursuing better relations with Stalinist North Korea.

The president referred directly to plans for talks between generals from the North Korean and South Korean militaries scheduled for next week, a historic step designed to ease military tension.

"The government is requested to step up efforts to improve security atmosphere on the Korean peninsula by ensuring that substantive progress be made in the North Korean nuclear issue and by intensifying efforts for inter-Korean military detente," Roh said.

South Korea significantly increased its defence budget this year but not as much as the defence ministry had demanded and less than necessary to assure its defence independently of the United States.

"They spend about 2.8 percent of GDP (gross domestic product) on defence now. They would need closer to five percent to take over operations done by the United States," said a western embassy defence attache.

US troops based near the Demilitarized Zone (DMZ) with North Korea have long been seen here as a tripwire, assuring US involvement if North Korea invaded the South.

US Deputy Secretary of Defence Paul Wolfowitz said Tuesday the concept was outdated and even counterproductive.

Washington says the first troop reduction in South Korean since the early 90s is expected to take place in mid-year and will not affect the US ability to deter North Korea.

US air and sea combat capabilities will be enhanced as part of a US plan announced last year to invest 11 billion dollars in the defence of South Korea in coming years, officials sid.

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