PRESS BULLETIN - November 28, 2008

UNCLAS SEOUL 002286 DEPT FOR EAP/K, EAP/PD, INR/EAP/K AND INR/IL/P TREASURY FOR OASIA/WINGLE USDOC FOR 4430/IEP/OPB/EAP/WGOLICKE STATE PASS USDA ELECTRONICALLY FOR FAS/ITP STATE PASS DOL/ILAB SUDHA HALEY STATE PASS USTR FOR IVES/WEISEL E.O. 12958: N/A TAGS: KPAO PGOV PREL MARR ECON KS US SUBJECT: PRESS BULLETIN - November 28, 2008 Features ¶1. U.S. Beef Sales; "It Is Cheap..." "But..." (Hankook Ilbo, November 28, 2008, Page 13) Top Headlines Chosun Ilbo Prosecutors to Seek Arrest Warrant for Former President Roh Moo-hyun's Elder Brother on Suspicion of Taking 1 Billion Won in Return for Influencing Sale of Sejong Securities to Nonghyup JoongAng Ilbo Former President Roh's High School Friend, Jeong Hwa-sam, and his Brother Operated Illegal Gambling Business in Busan with Money Given by Sejong Securities; Park Yeon-cha, Chairman of Taekwang Industrial and Supporter of Former President Roh, Hid 60 Billion Won Abroad Dong-a Ilbo Former President Roh's Elder Brother and Jeong Brothers Allegedly Ran Gambling Business in Busan Together; Park Yeon-cha, Former President Roh's Supporter, Amassed Tens of Billions of Won in Slush Funds Hankook Ilbo Senior Sejong Securities Official: "Former President Roh's Elder Brother Personally Demanded Money for Influencing Sale of Sejong Securities to Nonghyup" Hankyoreh Shinmun Former President Kim Dae-jung: "Lee Myung-bak Administration is Intentionally Derailing Inter-Korean Relations" Segye Ilbo Some 120 People Killed in Mumbai Terror Seoul Shinmun Former President Roh's Long-time Supporter Park Yeon-cha Evaded 50 Billion Won in Taxes Domestic Developments ¶1. According to the Unification Ministry, North Korea yesterday detailed its cross-border passage restriction, slated to start Dec. 1, by informing the ROK that it will only allow ROK people to enter its territory once a week via its eastern border and three times a day via the western border. The North also slashed the number of people and cars allowed to cross the border by half and cut the hours during which border traffic is permitted. (All) ¶2. Major local discount stores yesterday resumed sales of U.S. beef for the first time in about a year. Most of the stores were crowded with customers, and sales of U.S. beef in some discounters surpassed those of Hanwoo (beef from Korean cattle) and Australian beef. (JoongAng, Dong-a, Hankook, OhmyNews, VoiceofPeople) International News ¶1. The U.S. will soon deploy three squadrons of F-22 stealth fighters to the Pacific region to deal rapidly with North Korea's nuclear threats. (JoongAng) Media Analysis Mumbai Terror Attacks The ROK media gave front-and inside-page coverage to yesterday's series of terror attacks in India's financial hub Mumbai, which left around 120 people dead and more than 300 injured. The ROK media reported that Muslim militants attacked at least 10 targets, including two five star hotels and a crowded train station, with assault rifles, hand grenades and explosives and that the attackers held some 100-200 foreign and local hostages at one of the hotels they invaded while engaging in a gunfight with local police. Foreigners who escaped from the scene of the terror attack were quoted as saying that the gunmen had singled out British and American nationals during the hostage standoff. The ROK media went on to say that all 26 Koreans, who had been caught in the middle of the deadly terrorist attacks when they were taken hostage at a Mumbai hotel, escaped unharmed four hours later but that the ROK Foreign Ministry is still looking for one Korean who did not make his flight back home to Seoul. Conservative Chosun Ilbo headlined its stories: "Indian Version of 9/11 Terror Attacks; Mumbai Attacks Seem Intended to Test Obama." Right-of-center JoongAng Ilbo wrote in the headline: "Mumbai Terror Aimed at Westerners... Obama Put to the Test." Moderate Hankook Ilbo's headline read: "International Community Again Plunged into 'Terror Nightmare;' BBC Reports Bin Laden Plans Terror Attacks on New York Subway Before Obama Takes Office." Left-leaning Hankyoreh Shinmun headlined its story: "Obama's Anti-Terror Strategy Put to the Test" U.S. Beef Most ROK media noted yesterday's resumption of sales of U.S. beef by major ROK discount stores for the first time in about a year, and reported that most of the stores were crowded with customers and that sales of U.S. beef in some discounters surpassed those of Hanwoo (beef from Korean cattle) and Australian beef. Features U.S. Beef Sales; "It Is Cheap..." "But..." (Hankook Ilbo, November 28, 2008, Page 13) By Reporters Lee Sung-hee and Kang Ji-won U.S. beef got mixed response from consumers. In terms of sales volume, U.S. beef overtook hanwoo and Australian beef. Civic groups, including the People's Conference against Mad Cow Disease, launched a protest rally. On November 27, when U.S. beef sales resumed, the meat sections of large discount stores E-Mart, Homeplus and Lotte Mart were crowded all day long with people, including reporters and beef consumers. There were also some people who said, "I came here just out of curiosity." However, consumers' response was largely mixed. While people aged over 50 said, "We are satisfied that we can eat meat at a lower price," housewives in their 30s and 40s noted, "Although we are looking around out of curiosity, we are still cautious." Around noon the same day, at the U.S. frozen beef section of an E-Mart store in Yongsan, you could see a bulletin which explained each part of the beef and notified consumers that "we, E-Mart, sell only safe beef from cattle younger than 30 months, which is produced at slaughtering and processing plants certified by the ROKG and the U.S. Department of Agriculture." By part, per 100 grams, chuck roll sells for 1,350 won, loin for 2,780 won, boneless short rib for 1,880 won, and fore shank for 2,280 won. A person surnamed Kang (54, Galwol-dong, Yongsan-gu) who goes to market every other day said, "My two sons, a high school student and a college student, like beef, but so far we could not afford to eat beef. I am happy to buy beef at half the price (of home-grown beef hanwoo)," adding, "Since large stores are for ordinary folks, they should sell cheap products." A person surnamed Hong (40, Galwol-dong) who said she dropped by the store to buy U.S. beef noted, "I bought a set of fore shank (790g) for 18,000 won. I am satisfied with its price and quality." On the other hand, an 8 months pregnant woman surnamed Koh (38, Hannam-dong, Yongsan-gu) said, "How come U.S. beef entered the ROK market so easily? Since the government and citizens were at loggerheads over the controversial issue for about six months, I am confused how U.S. beef is available on the market so soon." A mother of two elementary school students (42, Yichon-dong, Yongsan-gu) remarked, "Since it is for my children, I will choose to buy hanwoo. I would like to give my children safe foods." Around the same time, a Lotte Mart store near the Seoul station also began selling U.S. beef. Since civic groups changed their protest venue from here to an E-Mart store in Yongsan, this store was relatively quiet. A person surnamed Lee (62, Sillim-dong, Gwanak-gu) said, "Hanwoo is very expensive. Young people know nothing. Some restaurants and meat shops cheat consumers by mislabeling U.S. beef as hanwoo," adding, "Given our difficult livelihood, I do not understand why they do not buy high-quality U.S. beef at a lower price." The sections of pork and Australian beef whose prices are similar to U.S. beef are less crowded. A seller at the meat section of a Lotte Mart store noted, "Some people asked about the safety of U.S. beef, but most decided whether or not to buy it after looking at the quality of beef in person. Many people compared it with Australian beef, and among U.S. beef products, fore shank and ribs are popular." As of 6 p.m. on this day, E-Mart announced that out of the first shipment of 40 tons of U.S. beef, 13 tons were sold, and 16 tons of Australian beef and 4.5 tons of hanwoo were sold. Australian ribs for steamed dishes were especially so popular that they drove up the overall sales of Australian beef. When it comes to the total amount of beef sales, both U.S. and Australian beef amounted to 108 million won, overtaking hanwoo (105 million won). At HomePlus, 11.5 tons of U.S. beef were sold by 6 p.m., higher than Australian beef (9.3 tons) and hanwoo (3.7 tons). As of the same time, at Lotte Mart, 6 tons of U.S. beef and 2.3 tons of Australian beef and 4 tons of hanwoo were sold. An official of Lotte Mart said, "More than 9 tons of U.S. beef, 180% of the daily target, are expected to be sold by closing time." Meanwhile, the People's Conference against Mad Cow Disease and the Hanwoo Association held a press conference in front of an E-Mart store in Yongsan at 1 p.m. and called for the suspension of U.S. beef sales at big discount stores. Although Democratic Labor Party lawmaker Choi Hyung-kwon and Chairman of the Korean Federation of Trade Unions Huh Young-koo attended the rally, a total number of participants numbered only about 20 due to bad weather, and around 3 p.m., the initial plan to continue the rally at a Lotte Mart store near the Seoul station was canceled. Rep. Choi and Chairman Huh met with the head of the E-Mart store in Yongsan around 2:30 p.m. and demanded an answer to a call for a ban on U.S. beef sales by December 1. However, E-Mart said, "It is not a matter that we can decide unilaterally, and the sales suspension is not possible." An official of the People's Conference against Mad Cow Disease said, "If (large discount stores) continue to sell U.S. beef, we will also continue to protest against it." Stephens