President Lee has also urged Australia's green industries to share ideas on how to tackle climate change, saying his country aspires to be an environmental leader in Asia.

He began a four-day trip to Australia with a speech to an Australia Korea Green Business Forum in Sydney.

Trade and investment will top the agenda during his visit.

The economies of Australia and South Korea are roughly the same size, and their strengths are complementary.

Australia is strong in resources and services and Korea is strong in manufacturing and technology.

President Lee thanked Macquarie Group for its investment in his nation, using it as an example for other companies.

"I would like to ask the other Australian investors to invest in me, but more importantly in the future of Korea," he said through an interpreter.

"Korean industries are very much interested in becoming more closer with their Australian counterparts and its consumers.

"And both of our peoples want to enjoy what the other has to offer in terms of services, goods and good ideas."

Korean investment in Australia rose 400 per cent in the past year, while Australian investment in South Korea has increased 40 per cent, the Lowy Institute has reported.

The president renewed his vow that South Korea will be an "early mover" on climate change.

"I hope that both countries will be able to cooperate in this area as well," he said.

"Furthermore, Korea has decided to work with Australia to go into developing countries in the Asia Pacific region to help others cope better in dealing with climate change.

"We should seek to create a cooperative mechanism for sharing these green technologies.

"... I hope my visit will be the start of a new era of green cooperation and the beginning of a new momentum between Korea and Australia."

President Lee will meet with Prime Minister Kevin Rudd on Thursday, when they are expected to announce a new security cooperation agreement similar to one Australia has with Japan.

The president and his wife Kim Yoon-ok will meet NSW Governor Marie Bashir later on Wednesday, and will be guests at a state dinner hosted by NSW Premier Nathan Rees in the evening.

Sydney is the natural starting point for President Lee's visit because most of the 60,000 Australians of Korean descent live in NSW.

The South Korean community in Australia also includes about 30,000 students and 25,000 on working holiday visas.