Mr Roh said close co-operation with the US was vital
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The South Korean government has said it will keep troops in Iraq for a further year, in a move likely to enhance relations with the US.
The soldiers will stay in Iraq until the end of 2008 - but their numbers will be halved to 600, President Roh Moo-hyun said in a televised address.
He said US ties were a priority, with talks on dismantling North Korea's nuclear facilities at a key stage.
The move must be passed by parliament, where there is set to be fierce debate.
Despite being pro-government, the United New Democratic Party - the country's largest party - has indicated that it will oppose extending the Iraq mission.
But the main opposition Grand National Party is expected to back the extension.
'Close co-operation'
South Korea first sent troops to Iraq in 2003, to do reconstruction work in the northern town of Irbil.
But since then public opposition to the deployment has mounted and troop levels have been reduced from 3,600 to the current 1,200 soldiers.
The government had previously planned to bring the troops home at the end of this year when their mission expired, but the US asked for an extension.
Mr Roh said that South Korea needed "close co-operation with the US more than any other time".
"Under the situation where North Korea's nuclear issue could develop in an unpredictable way, we judge that the South Korea-US alliance, more than anything else, should be maintained," he said.
Both the US and South Korea are key players in multilateral talks aimed at persuading Pyongyang to abandon its nuclear programme.
After years of deadlock, progress is being made and earlier this month, Pyongyang agreed a timetable for disabling its nuclear facilities.
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