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SEOUL, South Korea (CNN) -- After calling for fast-track economic reform in Japan on Friday, U.S. President Bill Clinton arrived in South Korea where security matters will be a key issue in talks with President Kim Dae-jung.

Speaking at a joint news conference with Japanese Prime Minister Keizo Obuchi before flying to South Korea, Clinton said he was not sure whether North Korea was deliberately taking a more aggressive stance toward its neighbors.

North Korea's surprise missile test over Japan on August 31, its threats to resume reprocessing nuclear material and refusal to engage in a dialogue with South Korea have called into question Pyongyang's desire to ease regional tensions.

"No one can be absolutely sure of whether the North Korean position is simply a product of economic difficulties, so they're attempting to get more money out of various countries for doing what they ought to be doing anyway, or whether they really are moving toward a more hostile posture," he said.

Obuchi and Clinton discussed concerns over North Korea's possible development of nuclear weapons at an underground facility, in violation of a 1994 agreement.

Clinton said North Korea proposed "completely unacceptable" conditions for inspecting the large underground site, the location of a nuclear plant mothballed under the accord between the United States and North Korea.

North Korea has asked the United States to pay $300 million for the right to inspect the site near Yongbyon, a senior U.S. official said in Washington on Thursday. A U.S. envoy left Pyongyang on Wednesday after he failed to secure access to it.

Under the 1994 accord, Washington agreed to provide North Korea with two advanced nuclear-power reactors and alternative energy supplies as long as Pyongyang froze its nuclear program.

Clinton's main focus of talks in Japan had been the Asian financial crisis in general, and how a Japanese economic recovery could kick-start the rest of the region in particular.

In his news conference with Obuchi, Clinton supported legislation for Japanese bank reform but said it should only be carried out in a healthy lending environment.

Clinton, however, was less sure about the 24 trillion yen ($200 billion) stimulus package passed by the government on Monday.

"I think it is quite good. Whether it will be enough or not I do not know, simply because the prime minister has had to change a policy that was not stimulating the economy."

Clinton also called on Japanese consumers to have faith in their country and start buying more vigorously.

"Average citizens, if they have confidence and they believe in the capacity of this country to meet its challenges, can help by purchasing more of the goods and services, more of the output of Japan, to create more jobs and stabilize this economy," he said.

Clinton reaffirmed the United States' stance that it was in Japan's interests to support open markets but did not elaborate.

He also said he felt it was unfair to pass judgment on the Obuchi government at this point as too little time had elapsed since it took office.

"Today, I believe Japan has -- amidst all the difficulties -- a win-win proposition," Clinton said.

Earlier in the day, in a polite but uncompromisingly blunt speech, Clinton said Japan's efforts so far to jolt its economy out of an eight-year slide may need to go further.

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"With others in the region still struggling, Japan and only Japan can lead Asia back to stability and growth by meeting its own economic challenges," Clinton told U.S. and Japanese executives at an American Chamber of Commerce breakfast.

He urged the Obuchi government to quickly carry out its banking reform legislation and the stimulus plan it unveiled on Monday.

"Indeed, the people here may conclude that even more must be done to jolt the economy back into growth," Clinton said.

The U.S. president also delivered a tough message on trade, suggesting that there may be a resurgence of protectionism in the United States if Japan is not seen to open up its own markets.

U.S. officials expect the United States' trade deficit to swell to $300 billion next year from the record $240 billion forecast for this year because of a flood of Asian imports, and they fear a domestic protectionist backlash.

"The worst thing that can happen is if it appears that when times are tough, borders are closing up...and then you're going to have, I'm afraid, a round of retaliatory protectionism," he said. "I'm quite worried about this now."

Clinton said a return of confidence in their country by Japanese consumers was key to the economy, "over any economic plan."

The White House has already seen discontent stir in the U.S. steel industry, where manufacturers and unions have filed an anti-dumping suit against Japan, Russia and Brazil over a surge in steel imports.

Clinton referred to a 500 percent surge in U.S. imports of Japanese hot-rolled steel during the first eight months of this year, saying this could help undermine American support for keeping U.S. markets open.

"If there is a perception of unfairness, the consensus can disappear," he said.

"It will create in our country the potential for a retrenchment in a way that will not be good for Asia, for Japan or for the United States over the long run," Clinton said.

"We want to keep our markets open but we need fair, rule-based disciplined (trade) expansion, and we need to avoid market penetrations that have no relationship to market factors."

The Associated Press and Reuters contributed to this report.