PRESS BULLETIN - January 22, 2009

UNCLAS SEOUL 000118 SIPDIS 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 - January 22, 2009 Opinions/Editorials ¶1. Korean Peninsula Initiative in Obama's Inaugural Address (Chosun Ilbo, January 22, 2009, Page 26) ¶2. A Profoundly Changed Foreign Policy (Hankyoreh Shinmun, January 22, 2009, Page 23) ¶3. Reasons Why Obamanomics Should Not End in Failure (Hankook Ilbo, January 22, 2009, Page 39) ¶4. Messages of "Unity, Responsibility and Remaking" in Obama's Inaugural Address Are What the ROK Must Also Adopt (Dong-a Ilbo, January 22, 2009, Page 27) Features ¶5. Consumer Anxiety Over U.S. Beef Still Lingering (Dong-a Ilbo, January 22, 2009, Page B4) Top Headlines Chosun Ilbo, Seoul Shinmun, All TVs Blue House Considers Withdrawing Nomination of Seoul Police Chief Kim Seok-ki as New Chief of National Police Agency Over Deaths of Six People in Fire During Police-Tenant Standoff JoongAng Ilbo, Hankook Ilbo Prosecutors: A Police SWAT Team was Ordered to Evict Protesters Occupying the Site of the Incident, Even Though Police were Aware that Inflammable Materials were Present at the Scene Dong-a Ilbo Prosecutors Seek Arrest Warrants for Five to Six Protesters for Sprinkling Paint Thinner and Throwing Molotov Cocktails Hankyoreh Shinmun SWAT Team Dispatched Just Three and a Half Hours After Protesters' Sit-in Started Segye Ilbo Korea Development Bank's (KDB) Planned Sale of Daewoo Shipbuilding to Hanwha Group Falls Apart; Both Hanwha and Daewoo Creditor KDB Faced with Sizable Losses and Uncertainty Domestic Developments ¶1. Russian Ambassador to the ROK Gleb Ivashentsov, in a Jan. 21 speech in Seoul, said that Russia is against any North Korean threats to the ROK. He went on to say that Russia does not regard North Korea as a nuclear state and that it will make efforts to get North Korea to give up its nuclear ambitions. (Hankook) International News ¶1. According to CNN, in one of his first actions as President, President Barack Obama yesterday ordered military prosecutors to seek a 120-day suspension of legal proceedings involving prisoners at Guantanamo Bay. (Chosun, Hankyoreh, Segye, Seoul) ¶2. The (North) Korean Central News Agency yesterday reported on Obama's inauguration as the 44th U.S. President. Given that North Korea had reported on President Bush's inauguration three days after the event, yesterday's report was unusually prompt. (JoongAng) ¶3. According to (North) Korean Central TV, Wang Jiarui, Director of the International Department of the Central Committee of the Communist Party of China, visited North Korea yesterday. The North's state-controlled media did not mention his schedule and the purpose of his visit. Attention was focused on whether the senior Chinese official will meet with North Korean leader Kim Jong-il. (Chosun, Dong-a) Media Analysis Obama Inauguration President Obama's inauguration continued to draw prominent media attention. Most of the ROK media observed that his inauguration triggered a sense of excitement and anticipation across the world but that Obama may have little time to savor the moment, because he must address grave challenges faced by his embattled country - two wars in Iraq and Afghanistan, the Middle East conflict, terrorism threats, massive home foreclosures, job losses and shuttered businesses, among them. Right-of-center JoongAng Ilbo carried an inside-page report entitled "Obama Era has Opened; KORUS FTA, Troop Deployment to Afghanistan Likely to Test ROK-U.S. Ties." Conservative Dong-a Ilbo editorialized: "The message that President Obama sent to the Korean Peninsula is serious. He said that he 'will work tirelessly to lessen the nuclear threat.' He also warned, 'To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.' Through these statements, it can be said that he has made it clear that he will not have dialogue for the sake of dialogue, but only when North Korea gives up its nuclear ambitions will the U.S. have dialogue." Left-leaning Hankyoreh Shinmun's editorial, meanwhile, argued: "The great principle of U.S. foreign policy presented by President Obama is cooperation and understanding. This means that the U.S, while taking a cautious approach to using military force, will seek global cooperation by enhancing its legitimacy and setting a good example. Regarding the North Korean nuclear issue, he vowed to 'work tirelessly to lessen the nuclear threat with old friends and former foes.' This statement reaffirms the principle of direct negotiations between the North and the U.S. Pyongyang should not miss this opportunity.... Washington's forward-looking shift in foreign policy can offer us many opportunities. This is all the more so because the U.S. has decided to take this path after its painful trials and errors over the past eight years. Now is the time for us to go beyond the hackneyed slogan of 'strengthening the ROK-U.S. alliance' and to put our heads together for a peaceful and prosperous Korean Peninsula and Northeast Asia and a better world." Moderate Hankook Ilbo editorialized: "The problem lies in how successfully Obama will put his words into practice. The success or failure of the Obama Administration directly affects the life of the Korean people. This is why we hope that the incoming administration, which is hailed as a 'change of history,' fulfills its promise and stays the course, faced with any formidable challenges in the future." Right-of-center JoongAng Ilbo gave attention to the (North) Korean Central News Agency's report yesterday on Obama's inauguration. JoongAng described it as "unusually prompt," given that North Korea had reported President Bush's inauguration three days after the event. North Korea Moderate Hankook Ilbo carried a quote from Russian Ambassador to the ROK Gleb Ivashentsov, who said in a Jan. 21 speech in Seoul that Russia is against any North Korean threats to the ROK. He was further quoted as saying: "Russia does not regard North Korea as a nuclear state and it will make efforts to get North Korea to give up its nuclear ambitions." Gaza Most of the ROK media quoted an Israeli army spokesman as saying that Israel completed its withdrawal of forces from the Gaza Strip early on Jan. 21. Right-of-center JoongAng Ilbo, on the other hand, cited foreign media in reporting that the International Atomic Energy Agency (IAEA) will look into a claim by Vienna-based Arab ambassadors that Israel may have used banned ammunition containing depleted uranium in Gaza attacks. IAEA Spokeswoman Melissa Fleming was quoted as saying: "We will investigate the matter to the extent of our ability." Opinions/Editorials Korean Peninsula Initiative in Obama's Inaugural Address (Chosun Ilbo, January 22, 2009, Page 26) By Ha Young-sun, professor of Seoul National University The U.S. has to deal with both the war against terror and the economic downturn at the same time, so its power is diminishing now. Nevertheless, the U.S. is the wealthiest nation in the world in the twenty-first century. U.S. President Obama's inaugural address underlined the importance of recreating a United States imbued with hope and courage. He stressed the "careful use of power" in overcoming the security crisis. He also pointed out the need for laying the groundwork for growth, as well as raising the GNP and improving its distribution. If we look at his augural address and the Senate confirmation hearing of Secretary of State-designate Hillary Clinton, we can better understand how the incoming administration will affect our lives. In terms of the North Korean nuclear issue, the new administration's denuclearization goal is clearer than that of the Bush Administration. At her Senate confirmation hearing, Secretary of State-designate Hillary Clinton said, "The U.S. will verify North Korea's nuclear enrichment program and Syria's nuclear technology proliferation as well as the Yongbyon nuclear facilities whose verification is now under discussion. It will pursue tough diplomacy based on reality, while reviewing an opportunity to hold a meeting between the U.S and North Korea, within the framework of the Six-Party Talks." But these efforts cannot bear fruit as long as the North adheres to a "Military-First Politics" based on its nuclear programs. The North Korean nuclear issue needs careful review and international economic cooperation, as it can develop in a way that the U.S., North Korea, and the ROK have never expected. During his inaugural address, President Obama vaguely mentioned a new alliance order with the aim of resolving the security crisis in a pragmatic way amid the relatively weakening power of the U.S. Secretary of State Hillary Clinton explained the order in East Asia as follows: while considering Japan a cornerstone of American policy in Asia, the U.S. will build economic and security partnerships with the ROK, Australia, and ASEAN nations, based on which it will establish its economic and political partnership with India. Meanwhile, the U.S. will seek an active and cooperative relationship with China on strategic and economic fronts. The future of U.S.-China relations is expected to be considerably influenced by the direction Beijing will take in its domestic and foreign policies. In addition, the U.S. has made clear that it will use "smart power," a mixture of hard power (military and economic strength) and soft power (diplomacy, politics, law, culture),in its international relations. Now is the time for the ROK to seriously consider how to manage its international relations in the Obama-led process of establishing order in Northeast Asia. A Profoundly Changed Foreign Policy (Hankyoreh Shinmun, January 22, 2009, Page 23) In his inaugural address, United States President Barack Obama said America is a "friend of each nation and every man, woman and child who seeks a future of peace and dignity" and that "power alone cannot protect us, nor does it entitle us to do as we please." It was a clear farewell declaration to unilateralist foreign policy. We hope to see these expressions of intent on Obama's part quickly lead to actual policy. The overriding principles of his foreign policy are (to seek) greater cooperation and understanding. Military force is to be used prudently while increasing American legitimacy and setting an example through which the United States will then seek global cooperation. The first place this principle is to be applied is the Middle East. Obama said the United States will give responsibility for Iraq to the Iraqi people and strengthen the peace won with much difficulty in Afghanistan. He will also activate a team of people to work on the Israeli-Palestinian question. The "war on terror" turned into an ideological term long ago, so it was nice to have him not use it in his address. But as some people have noted with concern already strengthening peace in Afghanistan must not be an excuse to strengthen military intervention there. Mentioning North Korea, he said that he would work with old friends and former adversaries to reduce the nuclear threat. This statement reaffirms his principle of direct negotiations between Pyongyang and Washington. North Korea must not lose this opportunity. The ROK, too, must of course actively support that dialogue. The Seoul government needs to stop its Cold War thinking and engage in a balanced effort to resolve issues pertaining to the Korean Peninsula. He called the economic crisis a "consequence of greed and irresponsibility on the part of some" and said that the United States "cannot prosper long" with a market that "favors only the prosperous." This statement expresses his intent to correct much of what is wrong with the neoliberal order that gave birth to the crisis. This could mean that economic relations could change, as could the situation with the ratification of the U.S.-ROK Free Trade Agreement, yet the Lee Myung-bak Administration continues to be unrealistic in its argument that the National Assembly should hurry to ratify the agreement. First, an economic order that is sustainable and that brings benefit to the whole country should be created. This profoundly changed foreign policy on the part of the United States could for us be an opportunity, all the more so because it is a road the Americans are choosing after eight years of painful trial and error. It is time to go beyond the usual slogans about strengthening the U.S.-Korea alliance, and work hard together on creating a peaceful and prosperous Korean Peninsula and Northeast Asian region and a better world. * This is a translation provided by the newspaper, and it is identical to the Korean version. Reasons Why Obamanomics Should Not End in Failure (Hankook Ilbo, January 22, 2009, Page 39) The inaugural address of U.S. President Barack Obama suggested imminent challenges and issues focused on economy and diplomacy, and stressed the importance of confidence and responsibility on the part of U.S. citizens. The evaluation of the address was divided along partisan lines in the U.S. Most investors who expected an "Obama Rally" might be disappointed by a significant decline in the New York Stock Exchange Index. The Index reflects the market's concerns about the serious economic challenges that should be addressed by the Obama Administration. President Obama said, "The state of the economy calls for action, bold and swift, and we will act not only to create new jobs, but to lay a new foundation for growth." But the market could not afford to pay attention to his inaugural address. The problem lies in how he successfully puts his words into practice. He stressed the need for establishing infrastructures, promoting science and technology, the quality of health care, and securing new sources of energy. His address indicates that the U.S. can rebuild its political leadership and economic power, as well as bring stability to the global economic and political order by using its power and spirit properly. The success or failure of the Obama Administration directly influences the lives of the Korean people. This is why we hope the incoming administration, which is hailed as a 'change of history,' fulfills its promise and stays the course, despite being faced with any formidable challenges in the future. Messages of "Unity, Responsibility and Remaking" in Obama's Inaugural Address Are What the ROK Must Also Adopt (Dong-a Ilbo, January 22, 2009, Page 27) Only when North Korea unclenches its fist will we extend a hand. President Obama stated in his inaugural address, "Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America." He also said, "In the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come." The current economic crisis is a global one. We should not forget, even for a moment, that a nation's economic standing will completely change depending upon how quickly it overcomes difficulties with entrepreneurship and courage. The message that President Obama sent to the Korean Peninsula is also serious. He said that he "will work tirelessly to lessen the nuclear threat." At present, only North Korea and Iran are posing a nuclear threat. He warned, "To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist." It can be said that through these statements, he has made clear that he will not have dialogue for the sake of dialogue, but only when North Korea gives up its nuclear ambitions will the U.S. enter into dialogue (with North Korea.) President Obama stressed, "What is demanded then (in order to overcome new challenges facing the U.S.) is a return to these truths (hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism)." These values are the force of progress throughout human history, and the ROK also needs them in ¶2009. Features Consumer Anxiety Over U.S. Beef Still Lingering (Dong-a Ilbo, January 22, 2009, Page B4) By Reporter Cho Eun-ah A survey by the Nonghyup Economic Research Institute... Anxiety about AI in chickens has died down. Consumer anxiety over U.S. beef has not completely subsided since the protests against the resumption of U.S. beef imports ended six months ago. This is in stark contrast to consumer anxiety over chickens, which has almost disappeared after the avian influenza (AI) incident. According to a report on "consumption trends for livestock products following the U.S. beef controversy and the AI outbreak," released on January 21 by the Nonghyup Economic Research Institute, the proportion of consumers who responded, "Consumption of imported beef has been reduced," increased from 73.8 percent last June to 75.2 percent last December. However, the percentage of those who said, "Consumption of domestic beef has been reduced," fell from 38.3 percent to 11.7 percent. In other words, while consumer sentiment toward imported beef has deteriorated, consumer sentiment toward domestic beef has improved. The institute carried out a survey on two different occasions, six months apart, to determine how much consumption patterns for livestock products have changed after the U.S. beef controversy and the bird flu outbreak. The first survey was conducted with 680 adults, both male and female, from June 1 to 14, and the second survey was conducted with 420 adults from December 1 to 14. U.S. bone-in beef began entering the ROK last July, three months after the ROK and the U.S. reached the beef import deal last April. A highly pathogenic avian influenza, which can be transmitted to humans, broke out last April. Meanwhile, the proportion of consumers who said that they put the highest priority on "origin" in buying livestock products grew 9 percentage points during the six months, while the proportion of buyers who chose "price" declined by 8 percentage points. The most important criteria consumers considered in buying livestock products as of last December was origin, followed by sanitary condition, quality, freshness, and price. Stephens 1