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Speaking Saturday at an economic forum organized by the Federation of Korean Industries on the southern island of Jeju, Bush said nations participating in six-way denuclearization talks with Pyongyang should be clear the North will face severe economic and other consequences, the South Korean news agency Yonhap reported.

North Korea withdrew from the talks involving the United States, South Korea, China, Japan and Russia in April. U.S. officials said last month that if the North agrees to end its nuclear program, Washington, Seoul and other allies would offer it a "comprehensive package" of incentives, Yonhap reported.

Forum organizers said Bush was to have dinner with South Korean President Lee Myung-bak in Jeju, followed Monday by visits to the city of Andong and the nearby Hahoe Folk Village, the news agency said.

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