PRESS BULLETIN - January 9, 2009

UNCLAS SEOUL 000047 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 9, 2009 Features ¶1. U.S. Could Step up Import Regulations on Korea (Chosun Ilbo, January 9, 2009, Page B1) Top Headlines Chosun Ilbo A Civic Group Seeks Measures to Root Out "Lawmaker Violence," Including a System to Impeach Lawmakers who Resort to Violence JoongAng Ilbo, Hankook Ilbo Online Commentator Known as "Minerva" Arrested for Spreading False Rumors; Minerva Has Been Making Online Postings Critical of Government Economic Policies Dong-a Ilbo Faced with Banks' Reluctance to Lend Money to Cash-Strapped Firms and Households, ROKG Decides Not to Penalize Banks If their BIS Capital Adequacy Ratios are 10 Percent or More; ROKG Originally Asked Banks to Raise BIS Ratios to 12 Percent Hankyoreh Shinmun, Seoul Shinmun ROKG Suspected of Inflating Economic Worth of Gyeongin (Seoul-Incheon) Canal Construction Project to Push Ahead with the Project Segye Ilbo ROKG to Inject 50 Trillion Won into Small and Mid-Sized Firms Domestic Developments ¶1. The National Assembly yesterday adopted a resolution calling for a ceasefire to the ongoing conflict between Israel and Palestine. (Dong-a, Hankyoreh, Segye, Seoul) International News ¶1. According to the Jan. 8 issue of The New York Times, Secretary of State-designate Hillary Clinton is likely to keep William Burns as Under Secretary of State for Political Affairs. Ms. Clinton is also expected to name Kurt Campbell, Deputy Assistant Secretary of Defense for Asian and Pacific Affairs in the Clinton Administration, as Assistant Secretary for East Asian and Pacific Affairs. Wendy Sherman, former U.S. North Korea Policy Coordinator, is also likely to be named as Special Envoy on North Korea. (Dong-a) ¶2. Israel's conflict with Hamas in the Gaza Strip threatened to broaden yesterday as rockets were fired into northern Israel from Lebanon. No group claimed responsibility for the rocket fire. (All) ¶3. Israeli envoys, meanwhile, arrived in Cairo yesterday for Egyptian-brokered talks with representatives of the Palestinian Authority and Hamas on a ceasefire proposal. (All) �00A; Media Analysis Gaza The ROK media gave prominent coverage to yesterday's rocket fire on northern Israel from Lebanon. The ROK media reported that at least three rockets were fired into northern Israel and that this could presage the opening of a second front for Israel, which continued to attack the Gaza Strip yesterday. The ROK media noted that Hezbollah, however, denied involvement in the rocket fire. Press reports gave attention to the Egyptian-brokered cease-fire talks held in Cairo yesterday between Israeli representatives, the Palestinian Authority and Hamas. Egyptian Foreign Minister Ahmad Abu al-Gheit was quoted as saying: "We are aiming for a cease-fire within 72 hours." Right-of-center JoongAng Ilbo headlined its story: "Rockets Fired from Lebanon Throw Cold Water on Cease-fire Talks; Possibility of Expanded War between Israel and the Arab World Raised." Conservative Dong-a Ilbo's headline read: "Lebanon's Rocket Fire Casts Dark Clouds over Middle East Truce Talks." Moderate Hankook Ilbo speculated that, if it is confirmed that Hezbollah was involved in the rocket fire, the current conflict between Israel and Hamas might trigger a "fifth Middle East war." Most of the ROK media also reported that the ROK National Assembly adopted a resolution yesterday calling for a ceasefire to the ongoing conflict between Israel and Palestine. Features U.S. Could Step up Import Regulations on Korea (Chosun Ilbo, January 9, 2009, Page B1) By Reporter Bae Sung-kyu The U.S. could impose various import regulations on the ROK this year, a report speculates. The report prepared by the Washington office of the Korea International Trade Association analyses U.S. trends. Titled "Prospects for U.S. Neo-Trade Protectionism in 2009," it warns ROK businesses and government to make thorough preparations for the incoming Obama Administration, imposing a variety of import regulations on the ROK. "In a recession, any country may attempt to make imported goods the scapegoat," it says. In 2009, an increasing number of (U.S.) companies will ask for import regulations, because it will be easy to prove the damage they do. The ROK in particular could be a major target of such regulations along with China. The report adds, "The ROK already ranks second in the world in terms of anti-dumping complaints (with the WTO). Under these circumstances, the country can be an easy target for such complaints," it added. It also expresses fears that U.S. companies will complain about the ROK to exaggerate the damage when they file complaints against China. * This is a translation provided by the newspaper, and it is identical to the Korean version. Stephens 1