Identifier
Created
Classification
Origin
09SEOUL1284
2009-08-13 06:05:00
UNCLASSIFIED
Embassy Seoul
Cable title:  

SEOUL - PRESS BULLETIN; August 13, 2009

Tags:  PREL PGOV MARR ECON KPAO KS US 
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UNCLAS SECTION 01 OF 06 SEOUL 001284

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 13, 2009

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


Chosun Ilbo
Ruling and Opposition Parties Call for Korean Teachers and Education
Workers Union to Accept Teacher Evaluation System

JoongAng Ilbo

N. Korea: "Significant Progress will Soon be Made
in Relations with U.S."

Dong-a Ilbo
State-run "Foundation for Broadcast Culture" Issues
2008 Management Assessment Report for MBC TV

Hankook Ilbo
Hyundai Chairwoman Seems to Have Met N. Korean Leader Kim Jong-il;
She will Return to Seoul Today as Scheduled

Hankyoreh Shinmun
Defense Security Command, the Military's Internal Security
Organization, Suspected of Illegal Inspections of Civilians

Segye Ilbo
Government Employees Pension Service
Accused of Lax Management

Seoul Shinmun
Hyundai Chief Appears to Have Failed to Meet Kim Jong-il


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

Hyundai Group Chairwoman Hyun Jung-eun, who crossed the inter-Korean
border on August 10 to win the release of a detained Hyundai Asan
employee, again failed to meet with North Korean leader Kim Jong-il
yesterday. There is speculation that the Hyundai chairwoman will
meet with the North Korean leader today, the day she is scheduled to
return to Seoul. (Chosun, JoongAng, Dong-a, Hankyoreh, Segye, Seoul,
all TVs)

But according to a source familiar with North Korean affairs,
Hyundai Chairwoman Hyun appeared to have met with North Korean
leader Kim Jong-il yesterday evening, after he returned to Pyongyang
from his inspection of a naval academy in the northern town of
Hamheung. (Hankook)

Michael Schiffer, the Deputy Assistant Secretary of Defense for East
Asia, in an August 11 interview, said that the USG has no plan to
adjust the size of USFK. (Chosun)

U.S. Ambassador to the ROK Kathleen Stephens consoled Lee Hee-ho,
wife of former President Kim Dae-jung, during her visit to Yonsei
University's Severance Hospital yesterday, where Kim has been
hospitalized. (JoongAng, Dong-a, Hankook, all TVs, Nocut News)


INTERNATIONAL NEWS
--------------

On August 11, the U.S. Treasury Department imposed financial
sanctions on another North Korean bank, the Korea Kwangson Banking

Corp (KKBC),for providing financial services to companies that have
already been sanctioned under UN resolutions for proliferating
weapons of mass destruction. (All)

According to a diplomatic source in Washington, Kim Yong-il, North
Korea's Deputy Foreign Minister, said during his August 10 visit to
Mongolia that significant progress will soon be made in North
Korea-U.S. relations. (JoongAng, Segye, KBS)


SEOUL 00001284 002 OF 006



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

-N. Korea
--------------
All ROK media gave front-and inside-page play to the U.S. Treasury
Department's August 11 imposition of financial sanctions on another
North Korean bank, the Korea Kwangson Banking Corp (KKBC),for
providing financial services to companies that have already been
sanctioned under UN resolutions for proliferating weapons of mass
destruction.

Most ROK media interpreted this move as confirming that Washington's
North Korea policy remains unchanged following former President Bill
Clinton's visit to North Korea. In particular, conservative Chosun
Ilbo, in an editorial titled "U.S. Does Not Relax Sanctions on N.
Korea," observed: "The Obama Administration has demonstrated at home
and abroad that former President Clinton's 'humanitarian, private
visit to North Korea' has nothing to do with the North Korean
nuclear issue and that its North Korea policy remains unchanged."

Citing a diplomatic source in Washington, right-of-center JoongAng
Ilbo, conservative Segye Ilbo and state-run KBS quoted Kim Yong-il,
North Korea's Deputy Foreign Minister as saying during his August 10
visit to Mongolia that significant progress will soon be made in
North Korea-U.S. relations.

Most ROK media reported that Hyundai Group Chairwoman Hyun Jung-eun,
who crossed the inter-Korean border on August 10 to win the release
of a detained Hyundai Asan employee, again failed to meet with North
Korean leader Kim Jong-il yesterday. According to media reports,
however, there is speculation that the Hyundai chairwoman will meet
with the North Korean leader today, the day she is scheduled to
return to Seoul.

Moderate Hankook Ilbo, meanwhile, cited a source familiar with North
Korean affairs as saying yesterday that Hyundai Chairwoman Hyun
appeared already to have met with North Korean leader Kim Jong-il
yesterday evening, after the North Korean leader returned to
Pyongyang from his inspection of a naval academy in the northern
town of Hamheung. According to Hankook Ilbo, the source went on say
that Hyun and Kim focused their discussion on the release of the
detained ROK worker and that the worker may be released today.

Most newspapers, citing North Korea observers, commented that it is
typical for Kim to play "hard-to-get" in order to dramatize his
availability for a meeting. The newspapers, citing precedent, went
on to point out that the North Korean leader only plays this game
with ROK officials while sticking to pre-arranged schedules when
meeting visitors from the U.S. and China.


OPINIONS/EDITORIALS
--------------

"INTERNATIONAL SANCTIONS SHOULD STRENGTHEN AGAINST MYANMAR, THE
WORLD'S WORST HUMAN RIGHTS OFFENDER"
(JoongAng Ilbo, August 13, 2009, page 38)

"The ruling military junta's intentions are obvious: It intends to
restrain Ms. Suu Kyi from influencing the planned general elections
next year. ... The fact that the military junta has gone this far
despite international criticism demonstrates the ineffectiveness of
international responses. ... It is also problematic that the
international community has failed to speak with one voice. The UN
Security Council, faced with opposition from China and Russia, has
never passed a resolution against the country. Myanmar, along with
North Korea, is ranked among the world's worst human rights
violators. It is a well-known fact that some 2,000 political
prisoners remain incarcerated in the country. The international
community should be united at this time and enhance sanctions
against Myanmar."


SEOUL 00001284 003 OF 006



U.S. DOES NOT RELAX SANCTIONS ON N. KOREA
(Chosun Ilbo, August 13, 2009, page 31)

The U.S. Treasury Department added Korea Kwangson Banking
Corporation (KKBC) to a list of North Korean firms subject to
sanctions Tuesday. Separate from UN Security Council sanctions, the
U.S. government already designated Tanchon Commercial Bank and Korea
Mining Development Trading for financial sanctions.

Using Resolution 1874, the UN Security Council last month
blacklisted Namchongang Trading, , Korea Tangun Trading, the General
Bureau of Atomic Energy, and Korea Hyoksin Trading and its parent
company Korea Ryongbong General.

KKBC has a branch in Dandong on the Chinese border and it is
suspected of being one of the channels through which North Korean
leader Kim Jong-il manages to amass a slush fund. The Treasury said
KKBC was added to the list because the bank was financially linked
to Tanchon Commercial Bank, Korea Hyoksin Trading, Korea Ryongbong
General and other entities.

The addition comes just a week after former U.S. President Bill
Clinton won the freedom of two U.S. journalists with a visit to
North Korea. There had been speculation that the visit would mean a
change in U.S.-North Korean relations, including the lifting of
sanctions and the start of bilateral talks. But the Obama
Administration has demonstrated at home and abroad that former
President Clinton's 'humanitarian, private visit to North Korea' has
nothing to do with the North Korean nuclear issue and that its North
Korea policy remains unchanged.

The U.S. added KKBC to the blacklist immediately after explaining to
the ROK and the other countries involved in Six-Party Talks that it
saw no change in North Korea's attitude over the nuclear issue. It
is fortunate that the U.S. reaffirmed that it will not pursue
changes in relations with North Korea without first consulting with
the countries involved in the nuclear dismantlement talks. But it
is frustrating that North Korea refuses to budge.

The U.S. government has been pursuing a two-track approach in
dealing with North Korea by maintaining sanctions while sending
signals that the door is always open for dialogue if North Korea
takes steps to irreversibly dismantle its nuclear weapons program.
The U.S. even intends to offer a "comprehensive package" of benefits
that includes establishing diplomatic ties.

But Kim Jong-il, in the meeting with Clinton, reportedly repeated
his old mantra that the U.S. government must halt its "hostile
policies" against the North first. The U.S. government has said on
many occasions that it has no intention of invading North Korea.
The North's victim mentality has led it to develop nuclear weapons,
and as long as it remains trapped in this mode of
self-contradiction, the present stalemate will continue.

The ROK has no choice but to join in on international sanctions
against North Korea until the North changes its stance. But Seoul
must also strive for stability in inter-Korean relations by
continuing projects that are unrelated to the nuclear issue, such as
humanitarian cooperation and business collaboration at the Kaesong
Industrial Complex.


FEATURES
--------------

AUSSIE BEEF OUTSTRIPS U.S.
(JoongAng Daily, August 13, 2009)

By Reporter Kim Young-hoon

It might taste good, but U.S. beef is losing out in the meat wars to
the Land Down Under. Imports of Australian beef far outstrip its
U.S. counterpart in terms of quantity.

SEOUL 00001284 004 OF 006



In the first six months of this year, Korea imported 60,289 tons of
beef from Australia, the Korea Customs Service said yesterday.

The amount of beef imported from the United States during the same
period was 23,970 tons, 40 percent less than its main competitor in
the Korean market.

U.S. beef imports started up again last year despite massive public
demonstrations over the possibility of contracting mad cow disease
from U.S. beef.

Those fears appear to be affecting the sales of U.S. imported beef
in the local market. In the final quarter of last year 18,507 tons
of beef were imported from the U.S. In the second quarter of this
year the amount was 11,689 tons.

"The quality of U.S. beef is good but mistrust over U.S. beef that
began last year persists," said Park Chang-gyu, head of A-Meat, a
U.S. beef importer. "The consumption of U.S. beef is relatively
lower among the younger generation."

Lee Koo, an official with Meat and Livestock Australia Korea, said:
"Australian beef is gaining in popularity because it is produced
according to the preference of customers in each country. And more
than 95 percent of major hotels use Australian beef."


"THERE IS NO PLAN TO READJUST LEVEL OF USFK TROOPS"
(Chosun Ilbo, August 13, 2009, page 3)

By Washington correspondent Lee Ha-won

Michael Schiffer, the Deputy Assistant Secretary of Defense for East
Asian Affairs, explained on August 11 that as the U.S. government
promised, there is no plan to readjust the level of USFK troops.
Considering the current national security environment, it would be
better that the USFK stay in the ROK at a strong level.

Deputy Assistant Secretary Schiffer said in an interview with Chosun
Ilbo, "North Korea has been conducting a number of provocative
actions for the last six months. This is one area of significant
concern for us."

In relation to the 'extended deterrence' which was announced in the
ROK-U.S. summit talks in June 2009, Schiffer noted that, "it is not
the first time that the U.S. promised extended deterrence (to the
ROK); even so, it delivers a strong message to North Korea. This
promises to enhance national security a number of ways, including a
nuclear umbrella as well as other means."

Deputy Assistant Secretary Schiffer expected that the ROK will
secure stronger defense capabilities by 2012, at which time the
wartime transition of operational control (OPCON) will take place.
In relation to the deactivation of the CFC due to the OPCON
transition, he said, "Now it is time to go forward with a new
ROK-U.S. relationship of better dimensions. Even after OPCON
transition, the U.S. promise to defend the ROK will not be
changed."

However, in relation to the controversy that the ROK-U.S. missile
treaty should be revised in preparations against North Korean
weapons of mass destruction, Schiffer instead explained that "the
U.S. stipulated the offer of extended deterrence in order to deter
the military strength of North Korea. This offers a vast range of
fields."

Deputy Assistant Secretary Schiffer was formerly a program officer
in Policy Analysis and Dialogue at the Stanley Foundation, a U.S.
think tank. Currently, he is in charge of policies for East Asian
countries, including the ROK, China, Japan and North Korea, in the
Department of Defense.



SEOUL 00001284 005 OF 006


US ADDITIONALLY BLACKLISTED N. KOREAN BANK
(Chosun Ilbo, August 13, 2009, pages 1 and 3)

By Washington correspondent Lee Ha-won

The U.S. Treasury Department designated Korea Kwangson Banking
Corporation as an additional target of financial sanctions. The
measure came one week after former U.S. President Bill Clinton
visited North Korea on August 4 and met with leader Kim Jong-il.
The measure shows that the Obama Administration has not changed its
policies against the North since the former president's visit to
North Korea.

According to the Treasury Department, the bank is accused of
providing services to Tanchon Commercial Bank and Korea Hyoksin
Trading Corporation, which were blacklisted for the proliferation of
weapons of mass destruction. Therefore, the Department blacklisted
Korea Kwangson Banking Corporation through U.S. Executive Order

13382.

In relation to the bank, which has branch offices in various parts
of the world including Dandong in China, Undersecretary for
Terrorism and Financial Intelligence of the Treasury Department
Stuart Levy said, "North Korea's use of a little-known bank, KKBC,
to mask the international financial business of sanctioned
proliferators demonstrates the lengths to which the regime will go
to continue its proliferation activities and the high risk that any
business with North Korea may well be illicit."

In the wake of the measure, U.S. citizens and foreigners who do
business in the U.S. can no longer have transactions with this
bank.

"ROK-US UFG Exercise Will Be Conducted As Scheduled"

Foreign financial institutions doing business in the U.S. are
regarding this additional sanction imposed by the Department of
Treasury as an 'important recommendation' and it appears highly
probable that they will stop having transactions with the North or
become more prudent in having (future) transactions.

Along with this, Michael Schiffer, the Deputy Assistant Secretary of
Defense for East Asian Affairs said, "The ROK-U.S. combined UFG
(Ulchi Freedom Guardian) exercise, which was planned to start on
August 17, will be conducted as scheduled (without scaling-down the
scope and size of the exercise)." DASD Schiffer said, "As far as I
know, there's no change, whatsoever, for the UFG exercise at this
time point and it will be conducted as planned," in his interview
with Chosun Ilbo, our newspaper. He added, "When we consider the
current security environment, it will be good to see U.S. forces
maintain a strong level of capabilities in the ROK."

The announcement by the U.S. Department of Treasury on additional
sanctions to be imposed against North Korea and DASD Schiffer's
remarks show definitively that the position of the Obama
Administration regarding "the release of (the) two U.S. journalists
is separate from U.S. policies on North Korean (proliferation.)"

With this recent move, we can see that the U.S. makes clear that it
will implement UNSC Resolution 1874 and at the same time will
conduct the ROK-U.S. combined military exercise, designed to
strengthen deterrence against North Korea, with no change in plans.

In other words, it will be not easy for North Korea to have dialogue
with the U.S. as long as the North doesn't 'return to the Six-Party
Talks and implement a plan for denuclearization. North Korea,
meanwhile, continues to claim that the U.S. should relinquish its
hostile policies towards the North.


U.S. AMBASSADOR STEPHENS PLAYED MESSENGER ROLE BETWEEN USG AND
FORMER ROK PRESIDENT KIM DAE-JUNG DURING HER SERVICE IN SEOUL IN THE
1980S
(Dong-a Ilbo, August 13, 2009, Page 5)

SEOUL 00001284 006 OF 006



By Reporter Cho Soo-jin

U.S. Ambassador Stephens visits Kim Dae-jung in hospital.

U.S. Ambassador to the ROK Kathleen Stephens visited former ROK
President Kim Dae-jung at Severance Hospital in Seoul on August 12
and consoled his wife Lee Hee-ho.

After her visit, Ambassador Stephens told reporters, "I came here as
a representative of the U.S. government. Many Americans hope that
former President Kim, who dedicated himself to democratization and
peace, will make a quick recovery." She also stressed, "Former
President Kim and Mrs. Lee are old friends and colleagues of mine
and Americans." Just as she said, Ambassador Stephens has
maintained a special and long relationship with former President Kim
and Mrs. Lee.

Ambassador Stephens started to work in the political section of the
U.S. Embassy in Seoul during the "Seoul Spring" (a period of
democratization in the ROK) in 1980 and served in the ROK until

1989. She said that while watching the June 1987 Democratic
Uprising during her service as chief of the internal political unit
at the U.S. Embassy in Seoul (1984-1987),she had a special feeling
about then-opposition politicians, including former President Kim.

A Foreign Ministry official said that at the time, Ambassador
Stephens believed that a direct presidential election system should
be put in place to achieve the ROK's democratization. The official
noted that the Ambassador played a considerable role in helping
former President Kim build a closer relationship with the U.S.
government. Former Democratic Party leader Chyung Dai-chul, who, as
Kim's aide, contacted Ambassador Stephens, said that Ambassador
Stephens viewed (the ROK's) opposition activists favorably,
dispelling the opinions among them that (they) should "keep a
distance from the U.S."

After taking office as the U.S. Ambassador to the ROK last year,
Stephens visited former President Kim's house in Donggyo-dong,
Mapo-gu, Seoul to give an inaugural greeting. Ambassador Stephens
also invited Mrs. Lee and senior officials from her charity
organization, "Friends of Love" to the U.S. Embassy Residence in
Jeong-dong, Jung-gu, Seoul for tea.


STEPHENS