Seoul  - South Koreans on Tuesday mourned the death of former South Korean president Kim Dae Jung, 83, the second former president of the Asian country to die this year.

The Nobel Peace Prize laureate died at 1:42 pm (0442 GMT), after battling pneumonia and "related complications," Seoul's Severance Hospital said. He had been hospitalized since July 13 and underwent surgery in late July.

"Former president Kim had been treated for pneumonia since July 13 but died of heart failure caused by internal organ dysfunctions," hospital president Park Chang Il said at a press conference.

President Lee Myung Bak said South Korea has lost a "great political leader" in his liberal predecessor.

"The people will long remember his aspirations and accomplishments for democracy and national reconciliation," Lee said in a statement released by the presidential office.

South Korea's president from 1998 to 2003, Kim was crucial in promoting the country's "Sunshine Policy" aiming at a detente with North Korea. In 2000, he participated in the first North-South summit with North Korean leader Kim Jong Il.

He received the Nobel Peace Prize for his work for democracy, human rights and reconciliation with North Korea.

The former opposition leader was also credited with stabilizing the Asian country's democracy after years of authoritarian rule and military dictatorship.

He is survived by his wife and three sons.

Thousands of South Koreans are expected to pay their respects to the former dissident who was admired for his attempts to stabilize South Korea's economy following the Asian crisis in the 1990s.

Park said an altar for Kim was to be set up at the hospital.

United Nations Secretary General Ban Ki-moon, who is currently visiting his home country, is planning to pay his respects to Kim there, a UN official accompanying Ban said.

Kim is the second former South Korean president to die this year, following the suicide of his successor in office, Roh Moo Hyun. Roh, 62, jumped to his death from a rock in May after an investigation into corruption allegations surrounding his family.

South Korea's space agency said it would go ahead with he country's first space rocket launch scheduled for Wednesday afternoon despite Kim's death, reversing earlier considerations of a postponement.

A spokesman for the president said the launch of the Korea Space Launch Vehicle-1 was to go ahead, following consultations with policymakers and engineers.

"It has been decided that the launch should move forward since it does not affect the general state of mourning," the Yonhap news agency quoted Lee Dong Kwan as saying. (dpa)