SEOUL - PRESS BULLETIN; August 18, 2009

UNCLAS SECTION 01 OF 08 SEOUL 001318 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV MARR ECON KPAO KS US SUBJECT: SEOUL - PRESS BULLETIN; August 18, 2009 TOP HEADLINES -------------- Chosun Ilbo, All TVs ¶N. Korea Agrees to Resume Tourism Projects with Hyundai Asan JoongAng Ilbo ¶N. Korea, Hyundai Reach Five-Point Agreement ROKG Seeks Government-Level Talks to Realize Agreements Dong-a Ilbo Housing Vouchers to be offered to Low-Income Families Hankook Ilbo ROKG Calls Five-Point Agreement between Hyundai, N. Korea "Positive," But Says Government-Level Consensus will be Necessary Hankyoreh Shinmun, Segye Ilbo, Seoul Shinmun ¶N. Korea Agrees to Restart Family Reunions and Tourism by ROK Citizens DOMESTIC DEVELOPMENTS -------------- Former ROK President Kim Dae-jung died at Severance Hospital in Seoul Tuesday after a long battle with pneumonia and related complications, hospital officials said. He was 85. (All) Hyundai Group and North Korea's Korea Asia-Pacific Peace Committee, which handles inter-Korean business ties, unveiled a five-point press release yesterday in which North Korea agreed to resume tourism projects with Hyundai Asan, lift travel restrictions to the joint Kaesong Industrial Complex, and provide for the reunion of separated Korean families. (All) This agreement followed an August 16 meeting in Pyongyang between Hyundai Group Chairwoman Hyun Jung-eun and North Korean leader Kim Jong-il. (All) Unification Ministry Spokesman Chun Hae-sung said during yesterday's regular briefing: "The government assesses the agreement positively, but it was reached on a civilian level. So, concrete discussions are necessary to implement the accord. We will try to achieve that as soon as possible." (All) MEDIA ANALYSIS -------------- -N. Korea -------------- All ROK media gave top play to yesterday's five-point agreement between Hyundai Group and North Korea's Korea Asia-Pacific Peace Committee, which handles inter-Korean business ties. According to media reports, North Korea agreed to resume tourism projects with Hyundai Asan, lift travel restrictions to the joint Kaesong Industrial Complex, and provide for the reunion of separated Korean families. Unification Ministry Spokesman Chun Hae-sung was widely quoted as saying during yesterday's regular briefing: "The government assesses the agreement positively, but it was reached on a civilian level. So, concrete discussions are necessary to implement the accord. We will try to achieve that as soon as possible." A senior ROKG official was also quoted: "We plan to propose (government-level) talks to North Korea first and ascertain North Korea's sincerity in such talks." Conservative Chosun Ilbo, in an inside-page report from Washington, SEOUL 00001318 002 OF 008 wondered how the U.S. - which has been leading efforts to squeeze North Korea's money flow - will respond to this agreement to revive inter-Korean tourism projects that had been a steady income source for the North. The report quoted a diplomatic source in Washington as saying: "There is a high possibility that North Korea will try to drive a wedge between the ROK and the U.S, while conducting a 'dialogue tactic' (toward the ROK.) Close "coordination" between Seoul and Washington is more important than ever before." Right-of-center JoongAng Ilbo editorialized: "This agreement can be interpreted as a North Korean style proposal for dialogue, because the North presented its own solutions to major inter-Korean issues and expressed its willingness to take forward-looking measures. ... North Korea may have intended to ease the pressure that has strengthened against it since its second nuclear test and turn the situation around. Nevertheless, there is no need to downplay this agreement. Whatever North Korea's intentions, this agreement can provide a good opportunity to improve strained inter-Korean relations." Moderate Hankook Ilbo, left-leaning Hankyoreh Shinmun, and moderate Seoul Shinmun carried similar editorials carrying the identical headlines, "Hyundai-N. Korea Agreement Should Serve as Opportunity to Turn Around Inter-Korean Relations" Newspapers carried the following front- and inside-page headlines: "Again (Inter-Korean Ties) at Kim Jong-il's Beck and Call" (right-of-center JoongAng Ilbo); Will ROKG Hold N. Korea's Outstretched Hand?" (conservative Dong-a Ilbo); and "Limitations of Agreement on Civilian Level... A Lot of Variables and Difficulties Lie Ahead" (moderate Hankook Ilbo) OPINIONS/EDITORIALS -------------- FORM MATTERS AS MUCH AS SUBSTANCE (Dong-a Ilbo, August 18, 2009, page 31) Hyundai Group Chairwoman Hyun Jung-eun returned from North Korea with a joint news statement that she reached a deal with North Korea's Korea Asia-Pacific Peace Committee. Hyundai and North Korea reached the agreement in five different areas, including family reunions at Mt. Kumgang, and the resumption of tours to Mount Kumgang and Kaesong. But an unconventional thing happened: a meager business executive made promises and discussed national projects with the North. The Unification Ministry in Seoul said the agreement was made on a private level, and that if the deal is to become effective, details should be made through inter-Korean talks. But this is no good. The conglomerate is desperate to resume Mt. Kumgang tours, and the ROKG is at fault for allowing Hyundai to make a decision on such an important matter. The North is responsible for the suspension of inter-Korean family reunions, and tours to Mt. Kumgang and Kaesong. When an ROK tourist at Mt. Kumgang was shot to death by a North Korean soldier on July 11 of last year, Seoul immediately halted the tour to protect its people. The North stopped inter-Korean family reunions in July ¶2006. Reaching an agreement through inter-Korean talks is essential to resume the tours and reunions. The tours also cannot be allowed to resume unless Pyongyang explains last year's tourist killing, promise that a recurrence will never happen, and guarantee tourist safety. There have been rumors that Hyun and Seoul held a prior consultation because she reached an agreement with the North as if she were an envoy. Inter-Korean exchanges and cooperation require form as much as substance. It is problematic that Seoul will take over the promises made to Pyongyang by a business executive. Some say the North wants to reap economic benefits, including revenues from the tours that will amount in the tens of millions of dollars. Others say the North contacted the ROK's private sector while rejecting government-level inter-Korean talks. If Seoul glosses over this problem without knowing Pyongyang's intent, it will suffer later. SEOUL 00001318 003 OF 008 The North is sticking to its strategy of provoking the ROK through nuclear tests and long-range missile launches. North Korean leader Kim Jong Il held talks with Hyun on the seventh day of her trip at Mt. Myohyang. He treated her like a North Korean resident and acted impolite in treating a guest that way. The North's media, however, said, "Kim listened to all of Hyun's wishes," and, "At Kim's special order, all conveniences and safety will be guaranteed." To the outside world, Kim remains an old-fashioned dictator who is clueless about the ABCs of diplomacy and negotiations. The ROKG should not lose face when it contacts the North. Pyongyang should make specific agreements with Seoul at inter-Korean talks before the resumption of the Mt. Kumgang tour. (This is a translation provided by the newspaper, and it is identical to the Korean version.) HYUNDAI- N. KOREA AGREEMENT SHOULD SERVE TO THAW ICY INTER-KOREAN RELATIONS (Chosun Ilbo, August 18, 2009, page 35) Hyundai Group chairwoman Hyun Jeong-eun returned to the ROK after meeting North Korean leader Kim Jong-il and signing a five-point accord. On the outside, the accord seems to be unofficial and agreed upon in the private sector between Hyundai and North Korea's Asia Pacific Peace Committee, which is responsible for inter-Korean business projects. But considering its content, including the resumption of tours to Mt. Kumgang and Kaesong, the launch of tour programs to Mt. Baekdu, the normalization of the joint Kaesong Industrial Complex, and the resumption of reunions of separated families during Chuseok or Korean Thanksgiving - which falls on Oct. 3 - it could lead to a breakthrough in inter-Korean relations, which have been deadlocked since July of last year when a North Korean soldier shot and killed an ROK tourist at Mt. Kumgang. To realize the Hyundai-North Korea accord, as the Unification Ministry said, an agreement must be reached between the ROK and the North, and this calls for immediate talks between the two sides. Since there is only a month and a half left before Chuseok, the two governments and Red Cross officials need to begin discussing the reunion of separated families right way. When it comes to the resumption of tours to Mt. Kumgang, the government has been demanding a joint investigation into the shooting of tourist Park Wang-ja, as well as an apology from Pyongyang and a pledge that such an incident will not happen again. Thus, Hyundai's accord with the North alone is not enough to resume tours to the North Korean mountain resort. Even if the ROK agrees to accept a roundabout way to meet its demands, both sides should meet to discuss how to do it. North Korea's decision to lift restrictions on border-crossings has removed hurdles to the normalization of the operation of the Kaesong Industrial Complex and to resume tours to Kaesong, but the safety of tourists and South Koreans remaining at the complex still need to be guaranteed. As for tour programs to Mt. Baekdu, the ROKG not only needs to give a green light to Hyundai, but the two governments also have to conclude an aviation agreement. Without making any concrete promises, North Korea simply said that all accommodations and safety issues will be strictly guaranteed according to the special order issued by its leader Kim Jong-il. This may work in North Korea, but it is not sufficient as a guarantee to the outside world. When Park was shot to death and Hyundai Asan worker Yu Seong-jin was detained for months by North Korean authorities, the ROK public realized there was nothing their government could do and concluded that inter-Korean business projects could not continue under such conditions. Because of the fact that the agreement between Hyundai and the North is simply a civilian accord, it could be viewed as being part of North Korea's propaganda attempts. But since it could lead both governments to resume stalled talks, flexibility should be shown. Pyongyang should also promptly release the four detained fishermen SEOUL 00001318 004 OF 008 of the vessel 800 Yeonan, which strayed into the communist country's waters, so that remaining obstacles to the resumption of inter-Korean projects can be removed. North Korea must realize that the ROK is the only country willing to offer substantial support during difficult times, and make a strategic decision about what to do by taking into account the "new peace regime" proposed by President Lee Myung-bak, which calls for Pyongyang's abandonment of nuclear weapons in return for economic support. (This is a translation provided by the newspaper, and it is identical to the Korean version.) HYUNDAI- N. KOREA AGREEMENT SHOULD SERVE AS OPPORTUNITY TO TURN AROUND INTER-KOREAN RELATIONS (JoongAng Ilbo, August 18, 2009, page 42: EXCERPTS) The agreement between North Korea and Hyundai Group, which came following the release of the U.S. female journalists and the Hyundai Asan employee, signals that North Korea is sending a gesture of peace. North Korea may have intended to ease the pressure that has strengthened against it since its second nuclear test and turn the situation around. Nevertheless, there is no need to downplay this agreement. Whatever North Korea's intentions, this agreement can provide a good opportunity to improve strained inter-Korean relations. In particular, China is launching full-scale efforts to persuade North Korea to return to the negotiating table. Therefore, U.S.-North Korea talks are likely to resume soon. Progress on the North Korean nuclear issue is inseparable from development of inter-Korean relations. However, it is not desirable to take a rigid approach by focusing on only one of the two. The ROK needs to take a principled, timely and flexible approach. In this context, the ROK needs to make an official proposal to North Korea to hold talks. Inter-Korean Red-Cross talks aimed at realizing the reunion of separated Korean families could serve as a good starting point. To this end, the ROKG should also consider resuming restricted civilian aid to North Korea. We expect that North Korea will accept the ROKG's proposal of talks without any conditions attached. FEATURES -------------- SEOUL AND WASHINGTON NEED COORDINATION ON TOURISM PROJECTS THAT WILL RESUME AMID INTERNATIONAL SANCTIONS (Chosun Ilbo, August 18, 2009, page 3) By Washington correspondent Lee Ha-won Now we focus our attention on how the U.S. responds to the agreement between North Korea and Hyundai Group after leading efforts to squeeze the North's money flow. The Obama Administration sees this agreement as a "dialogue tactic" that North Korea has employed since early this month. The U.S. believes that North Korea is extending a conciliatory gesture to avoid UN Security Council sanctions, while bolstering its military power through missile launches and the nuclear test it conducted early this year and preparing to groom Kim Jong-un as the heir to Kim Jong-il. The Obama Administration is, in principle, not opposed to the revival of the Kaesong Industrial Complex project and the reunion of separated Korean families. However, the U.S. does not want inter-Korean exchanges to negatively impact the enforcement of UNSC Resolution 1874. The U.S. sees that enhanced cooperation between the ROK and North Korea should be pursued along with getting North Korea to resume the Six-Party Talks while pushing for denuclearization. SEOUL 00001318 005 OF 008 The U.S. expects that, in whatever format, there will be bilateral talks with North Korea in the wake of former President Bill Clinton's visit, and it is working on the process. But it seems that the Obama Administration does not intend to halt UNSC sanctions due to the resumption of bilateral talks with the North, as it did following Pyongyang's first nuclear test in October 2006. Instead, the U.S. is holding the position that UNSC sanctions need to be strictly implemented to persuade North Korea (to meet international obligations.) During an August 15 interview with the Wall Street Journal, Secretary of State Hillary Clinton reaffirmed this position while criticizing the George W. Bush Administration for not being consistent on the North Korean nuclear issue. She said, hitting her open palm against the arm of the couch, "Don't withdraw (when dealing with North Korea),don't leave the field. Look at the results of that. They began processing plutonium. That was not in anyone's interest." In addition, some observers in the Obama Administration believe that North Korea may emphasize inter-Korean cooperation in order to undermine the U.S.-ROK alliance, based on the judgment that it is not easy to deal with the Obama Administration. A diplomatic source in Washington, D.C. said that there is a high probability that North Korea may try to drive a wedge between the ROK and the U.S. by conducting a dialogue tactic (toward the ROK). The source added that, therefore, this is the time for the ROK and the U.S. to enter into consultations. An ROKG official said that it is burdensome for the ROKG to hastily revive tourist projects through which 538 million dollars have flowed into North Korea in the past 10 years, while the U.S. is pushing for financial sanctions against North Korea. Considering the U.S. position, some in the ROKG raise the possibility that goods, instead of cash, may be provided to North Korea for the tourist projects. OPINION POLL: WHO IS MOVING THE ROK IN 2009? (Sisa Journal, Issue of August 25, 2009, Pages 12-39) By Reporters Kham Myung-guk, Ahn Sung-mo, Lee Chul-hyun, Chung Rak-in, and Kim Ji-young At the request of the weekly Sisa Journal, Media Research conducted a telephone opinion survey of 1,000 experts (838 men and 162 women) - 100 each from 10 different fields, such as administrative bureaucrats, professors, journalists, lawyers, politicians, businessmen, financiers, aid group officials, cultural and artistic figures, and religious figures - from July 29 to August 12, 2009. ¶Q. Who moves the ROK? President Lee Myung-bak71.6% (Ruling) Grand National Party lawmaker Park Geun-hye 24.2% Former Samsung Group Chairman Lee Kun-hee16.7% Former President Kim Dae-jung9.8% Chairman of (opposition) Democratic Party Chung Se-kyun5.8% UN Secretary-General Ban Ki-moon4.6% Chairman of Grand National Party Park Hee-tae3.2% Late President Roh Moo-hyun3.0% National Assembly Speaker Kim Hyung-o2.5% Figure skater Kim Yu-na2.2% Executive Director of the Hope Institute Park Won Soon1.7% Former President Park Chung-hee1.6% Cardinal Cheong Jin-suk1.5% Hyundai Kia Automotive Group Chairman Chung Mong-Koo1.3% Grand National Party Supreme Council member Chung Mong-joon1.2% KAIST Chair Professor Ahn Chul-soo1.2% Former Minister of Health and Welfare Rhyu Si-min1.1% Liberty Forward Party Chairman Lee Hoi-chang1.0% SEOUL 00001318 006 OF 008 Rev. Cho Yong-gi, Pastor of Yoido Full Gospel Church1.0% Late Cardinal Kim Soo-hwan0.9% Grand National Party Floor Leader Ahn Sang-soo0.9% ¶Q. What is the most influential group or force in the ROK? Grand National Party 30.7% Democratic Party14.7% Press13.9% National Assembly10.7% Samsung Group8.9% Civic groups8.8% Prosecution8.5% Korean Confederation of Trade Unions -- Federation of Korean Industries5.0% Economic circles4.4% ¶Q. Who currently has the most influence over President Lee Myung-bak? Grand National Party lawmaker Lee Sang-deuk (President's elder brother)25.6% Grand National Party lawmaker Park Geun-hye18.4% Former Grand National Party Supreme Council member Lee Jae-oh 13.9% Chairman of Korea Communications Commission Choi See-joong 7.4% Grand National Party Chairman Park Hee-tae5.6% Presidential Chief of Staff Jung Jung-kil4.2% Chairman of Democratic Party Chung Se-kyun2.5% Grand National Party Floor Leader Ahn Sang-soo2.0% First Lady Kim Yoon-ok2.0% Grand National Party Supreme Council member Chung Mong-joon 1.8% ¶Q. Who has the greatest potential to become the next President of the ROK? Grand National Party lawmaker Park Geun-hye45.8% Former Minister of Health and Welfare Rhyu Si-min4.8% Grand National Party Supreme Council member Chung Mong-joon 3.5% Seoul City Mayor Oh Se-hoon3.1% Liberty Forward Party Chairman Lee Hoi-chang2.0% Independent lawmaker Chung Dong-Young2.0% Gyeonggi Province Governor Kim Moon-Soo1.9% Former Democratic Party Chairman Sohn Hak-kyu1.7% UN Secretary-General Ban Ki-moon1.3% Creative Korea Party Chairman Moon Kook-hyun1.1% ¶Q. Who is the most influential businessman? Former Samsung Group Chairman Lee Kun-hee66.6% Minister of Strategy and Finance Yoon Jeung-Hyun25.5% Hyundai Kia Automotive Group Chairman Chung Mong-Koo19.7% Bank of Korea Governor Lee Sung-tae9.0% LG Group Chairman Koo Bon-moo7.2% Hyosung Group Chairman Cho Suk-rae6.5% SK Group Chairman Choi Tae-won3.8% Grand National Party Supreme Council member Chung Mong-joon 3.7% Former Minister of Strategy and Finance Kang Man-soo2.6% KAIST Chair Professor Ahn Chul-soo1.9% ¶Q. What is the most influential ROK enterprise? Samsung Electronics70.1% Hyundai Motor40.4% LG Electronics27.9% Samsung Group27.1% SEOUL 00001318 007 OF 008 Hyundai Group17.8% LG Group11.6% POSCO11.5% SK Telecom11.3% Hyundai Heavy Industries6.4% SK Group5.7% ¶Q. Who is the most influential NGO leader? Park Won Soon, Executive Director of the Hope Institute25.8% Choi Yul, President of the Korea Green Foundation4.9% Lim Jong-dae, Co-chairman of People's Solidarity for Participatory Democracy1.6% Kim Sung-hoon, President of Citizens' Movement for Environmental Justice1.5% Kang Chul-kyu, Chairman of Citizens' Coalition for Economic Justice1.4% Suh Kyung-suk, Co-chairman of Christian NGO1.2% Han Bi-ya, international aid worker1.1% Lim Sung-kyu, Chairman of Korean Confederation of Trade Unions1.1% Jung Jung-sup, Chairman of Korea Food for the Hungry International1.0% Chang Ha-sung, Korea University Professor0.7% ¶Q. Who is the most influential person in the media business? Sungshin Women's University Professor Sohn Suk-hee 19.7% MBC President Um Ki-young10.6% Chosun Ilbo President Bang Sang-hoon10.3% Senior journalist of Chosun Ilbo Kim Dae-joong 6.6% KBS President Lee Byung-soon5.2% Chairman of Korea Communications Commission Choi See-joong 3.3% Former head of The Monthly Chosun Cho Kap-je3.1% (Former) JoongAng Ilbo President Hong Suk-hyun1.9% Dong-a Ilbo President Kim Hak-joon1.8% JoongAng Ilbo President Song Pil-ho, OhmyNews CEO Oh Yeon-ho1.3% ¶Q. What is the most influential media outlet? KBS 58.6% Chosun Ilbo57.5% MBC49.0% JoongAng Ilbo19.9% Naver16.7% Dong-a Ilbo16.5% SBS10.8% Daum8.7% Hankyoreh8.5% YTN5.0% ¶Q. What is the most reliable media outlet? MBC31.3% Hankyoreh 30.3% KBS25.5% Kyunghyang Shinmun18.4% Chosun Ilbo14.4% JoongAng Ilbo10.4% Naver8.1% Dong-a Ilbo 7.9% YTN7.1% Daum5.4% ¶Q. Which media outlet has the most loyal readership or viewership? Chosun Ilbo22.4% MBC21.9% KBS19.1% SEOUL 00001318 008 OF 008 Hankyoreh18.9% Naver 18.5% JoongAng Ilbo15.0% Daum13.8% Kyunghyang Shinmun12.0% Dong-a Ilbo9.0% Maeil Business Newspaper7.6% ¶Q. Who is the most influential religious figure? Cardinal Cheong Jin-suk38.8% Venerable Jikwan, Executive Chief of the Jogye Order of Korean Buddhism29.3% Rev. Cho Yong-gi, Pastor of Yoido Full Gospel Church18.7% Late Cardinal Kim Soo-hwan12.9% Buddist Monk Beopjeong of the Kilsangsa temple 4.0% Kwak Sun-hee, Senior Pastor of Somang Church2.8% Kim Sam-hwan, President of the General Assembly of Presbyterian Church 2.6% Late Buddhist Monk Sungchul2.0% Rev. Eom Shin-hyung, President of the Christian Council of Korea1.6% Kim Jin-hong, President of People's Livelihood Economy Research Institute 1.6% ¶Q. Who is the most influential foreign figure? U.S. President Barack Obama77.6% Chinese President Hu Jintao30.3% North Korea's National Defense Committee Chairman Kim Jong-il17.0% U.S. Secretary of State Hillary Clinton11.5% Japanese Prime Minister Taro Aso11.0% U.S. Ambassador to the ROK Kathleen Stephens4.1% Chinese Premier Wen Jiabao 2.1% Russian President Vladimir Putin2.1% Former U.S. President Bill Clinton2.1% Former Microsoft CEO Bill Gates1.6% ¶Q. Which event affected ROK society the most after its liberation from Japanese colonial rule? The Korean War (1950)47.0% The May 18 Gwangju Uprising (1980)39.6% The May 16 Military Coup (1961)26.8% The April 19 Student Revolution (1960)23.7% The June Democratic Uprising (1987)21.3% Death of former President Park Chung-hee (1979)14.3% Death of former President Roh Moo-hyun (2009)11.2% Foreign exchange crisis (1997)10.1% The December 12 Military Coup (1979)8.5% The 1988 Summer Olympics (1988)6.2% (Editor's Note: The same story was also carried by Chosun Ilbo in its August 18 edition.) TOKOLA