Identifier
Created
Classification
Origin
09SEOUL1112
2009-07-14 06:52:00
UNCLASSIFIED
Embassy Seoul
Cable title:  

SEOUL - PRESS BULLETIN; July 14, 2009

Tags:  PREL PGOV MARR ECON KPAO KS US 
pdf how-to read a cable
VZCZCXRO6557
OO RUEHGH
DE RUEHUL #1112/01 1950652
ZNR UUUUU ZZH
O 140652Z JUL 09
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5006
RUCPDOC/USDOC WASHDC 8859
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 0017
RUEHBJ/AMEMBASSY BEIJING 6282
RUEHKO/AMEMBASSY TOKYO 6372
RUEHGH/AMCONSUL SHANGHAI 0991
RUEHSH/AMCONSUL SHENYANG 4726
RUEHIN/AIT TAIPEI 3702
RUEHGP/AMEMBASSY SINGAPORE 6893
RUCNDT/USMISSION USUN NEW YORK 1250
RUEHGV/USMISSION GENEVA 2570
RUEHLO/AMEMBASSY LONDON 1648
RUEHFR/AMEMBASSY PARIS 2257
UNCLAS SECTION 01 OF 03 SEOUL 001112

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 14, 2009

TOP HEADLINES
--------------


Chosun Ilbo
Urban Poverty Ratio Increases Sharply in ROK

JoongAng Ilbo, Hankook Ilbo, Segye Ilbo,
Seoul Shinmun, All TVs
ROK-EU Free Trade Agreement Announced; the Accord Expected to Take
Effect in First Half of Next Year

Dong-a Ilbo
President Lee: "ROK and India will Sign Free Trade Agreement This
August and Ratification of KORUS FTA will Follow, which Means that
ROK will have Free Trade Deals with More than
50 Percent of the World's Population"

Hankyoreh Shinmun
Prosecutor-General Nominee Fakes Residential Record to Send His Son
to a High School in Southern Seoul, an Area Noted for Quality
Education; Also Violates Gift Tax Law


DOMESTIC DEVELOPMENTS
--------------

According to a senior ROKG official, the Chief Chinese Delegate to
the Six-Party Talks, Vice Foreign Minister Wu Dawei, in a July 13
meeting in Seoul with his ROK counterpart, Wi Sung-lac, expressed
Beijing's cautious stance toward holding the ROK-proposed five-party
consultations between the five members - excluding North Korea - of
the Six-Party Talks. (JoongAng, Dong-a, Hankook, Hankyoreh, Segye,
Seoul, VoiceofPeople)

"North Korea's Double-faced Approach toward Kaesong Complex:"
According to the Unification Ministry, North Korea has increased the
number of its workers at the Kaesong Industrial Complex by 1,354
this year, while threatening to close the joint inter-Korean
complex. (Chosun, Dong-a, Seoul)

According to a recent survey of 660 Seoul National University (SNU)
students conducted by an SNU professor, the political inclination of
SNU students is rapidly turning conservative. 42 percent of those
surveyed picked the U.S. as the country to which they feel closest,
and more students supported the ruling Grand National Party (20
percent) than the major opposition Democratic Party (10 percent).
(Chosun)


MEDIA ANALYSIS
--------------


N. Korea
Most ROK media gave attention to yesterday's meeting in Seoul
between chief ROK and Chinese delegates to the Six-Party Talks, in
which Wu Dawei, Chinese Vice Foreign Minister, expressed Beijing's

cautious stance toward holding the ROK-proposed five-party
consultations between the five members - excluding North Korea - of
the Six-Party Talks.

Wu was quoted as telling reporters, when asked if China supports the
five-party talks, "we will maintain the Six-Party format." An ROKG
official was also quoted: "China was cautious, and we do not expect
any concrete progress on the idea in the near future. We should
keep working on it."

Moderate Hankook Ilbo quoted President Lee Myung-bak as saying
during a July 13 press meeting in Stockholm: "Russian President
Dmitry Medvedev told me during our recent summit in Rome that Russia
will not treat North Korea as well as it did in the past, unless the

SEOUL 00001112 002 OF 003


North abandons its nuclear ambitions."

Moderate Seoul Shinmun carried a quote from Unification Ministry
Spokesman Chun Hae-song, who said during a July 13 regular briefing:
"There have been media reports that North Korean leader Kim Jong-il
has life-threatening pancreatic cancer, but we have no knowledge of
the reports."

Japanese PM Calls Elections
The ROK media gave front-and inside-page play to Japanese Prime
Minister Taro Aso's July 13 decision to dissolve the Lower House of
parliament next week and to call an election on August 30 following
his party's crushing defeat in the July 12 Tokyo assembly election.


Most media observed that chances are high that the opposition
Democratic Party of Japan will take power after 50 years of almost
exclusive rule by Prime Minister Taro Aso's Liberal Democratic
Party.


FEATURES
--------------
SNU Students Veer to the Right
(Chosun Ilbo, July 14, 2009, Page 2)

By Reporter Hong Young-rim

Seoul National University's traditionally radical students are
becoming more politically conservative. According to a survey of
660 SNU students conducted by Prof. Hong Doo-seung, 42 percent of
the respondents said they felt closest to the U.S.

That was against 15 percent who felt closest to North Korea and 13
percent who said Japan. But 37 percent of the respondents said they
felt most threatened by North Korea, followed by China (26 percent)
and the U.S. (17 percent).

Asked if they supported the strengthening of the South Korea-U.S.
alliance, 43 percent said yes, far outdistancing the 17 percent who
said no. Some 48 percent supported the continued presence of U.S.
Forces Korea, more than double the 22 percent who opposed it.

Students' views of the U.S. moved in a more positive direction. In
a previous survey by Hong in 2002 of students at six universities in
Seoul, including SNU, a mere 7 percent of the respondents had
positive feelings toward the U.S.

North Korea was generally viewed negatively. Some 78 percent said
they felt threatened by the North's nuclear weapons, while 60
percent expressed concern about the North taking external military
action.

On economic issues, 50 percent of the respondents supported the
principle of free competition, while 26 percent opposed it and 23
percent were neutral. Some 34 percent approved of free trade
agreements with various nations, more than the 28 percent who
opposed it. But 38 percent of the respondents were neutral.

Twenty percent of SNU students even supported the conservative Grand
National Party, followed by the New Progressive Party (19 percent),
the Democratic Party (10 percent),and the Democratic Labor Party (9
percent).

42 percent of the respondents still identified themselves as
politically progressive, followed by moderates (30 percent) and
conservatives (28 percent). But that stands against a similar
survey in 2002 in which 63 percent said they were progressives, 26
percent moderates, and 11 percent conservatives.

"The entire university community is rapidly becoming
de-politicized," said Hong, a professor of sociology. "As a result
of their disappointment with the progressive establishment during
the Kim Dae-jung and Roh Moo-hyun Administrations, many students are

SEOUL 00001112 003 OF 003


shifting their focus to what has direct influence on their lives,
such as employment and career."

(This is a translation provided by the newspaper, which has been
edited to make it identical to the Korean version.)


(ROK-EU FTA) to Be a Catalyst to Accelerate Ratification of KORUS
FTA
(Dong-a Ilbo, July 14, page 3)

By Reporter Cha ji-wan

Since the ROK-EU Free Trade Agreement (FTA) talks have concluded,
the ROK-EU FTA will likely act as a catalyst to accelerate the
ratification of the KORUS FTA, which has not been ratified by
lawmakers in both countries since being signed two years ago. This
is because a "most favored nation" clause is provided in the KORUS
FTA. The clause stipulates that if the ROK reaches a trade pact
with another country after the KORUS FTA takes effect, the most
favorable benefits under the pact should also be provided to the
U.S. However, in order for the U.S. to be entitled to such
benefits, the KORUS FTA has to go into effect before the official
signing of the ROK-EU FTA.

Trade experts say that even though it will not be clear until the
final agreement is revealed, there will be a considerable number of
clauses that entitle the U.S. to most favored nation treatment since
the ROK-EU FTA calls on bilateral markets to be more open than the
KORUS FTA.

Therefore, some economic organizations say that the ROK-EU FTA
should serve as a benchmark for ratification of the KORUS-FTA.
Cheong In-kyo, an Economics Professor at Inha University said that
most favored nation treatment was introduced to maximize economic
and synergy effects of the KORUS FTA. He added that it is not
appropriate to take this treatment negatively because areas which
may work against the ROK could be eliminated during negotiations.

Intense competition between EU and U.S. companies in the ROK market
is another factor that puts pressure on the U.S. government and
Congress. If the ROK-EU FTA takes effect earlier (than the KORUS
FTA,) the U.S. may lose a chance to make inroads into the ROK market
preemptively, even though the U.S. signed the trade deal with the
ROK first. In particular, European cars outperform U.S. automobiles
in the ROK market. Therefore if the ROK-EU FTA goes into effect
earlier, the U.S. will have less leverage. According to the Korea
Automobile Manufacturers Association, last year European cars
represented a 53% share of the ROK's imported car market, while the
U.S. accounted for an 11.7% share.

That is why the U.S. Government, which had negative attitudes
regarding the KORUS FTA at first, is (now) changing its tune.
During the June 16 summit with President Lee Myung-bak, President
Obama agreed to hold working-level talks to advance the progress of
the KORUS FTA. However, the U.S. Congress has stuck to the position
that pending domestic economic issues, including the health care
reform bill, should be addressed first. Therefore, this is expected
to be a deciding factor for the early ratification of the KORUS FTA.
The KORUS FTA was officially signed on June 30, 2007 but has not
taken effect because of delayed ratification by lawmakers in both
countries.


STEPHENS