SEOUL - PRESS BULLETIN; April 15, 2009

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SUBJECT: SEOUL - PRESS BULLETIN; April 15, 2009

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

Chosun Ilbo, All TVs
Prosecution: "$3 Million out of $The 5 Million Former President
Roh's Nephew-In-Law Received from Taekwang Industrial CEO Went to
Company Owned by Roh's Son"

JoongAng Ilbo
Former President Roh's Close Aides Also Found to Have Received Money
from President of Changshin Textile

Dong-a Ilbo, Hankook Ilbo, Hankyoreh Shinmun,
Segye Ilbo, All TVs
North Korea Quits Six-Party Talks and Restarts Nuke Plants

Seoul Shinmun
ROKG Announces Plan to Join PSI Today


DOMESTIC DEVELOPMENTS

The ROKG will announce its decision today to become a fully
operating member of the Proliferation Security Initiative (PSI).
(All) This could increase the possibility of armed conflict between
the two Koreas. (Hankyoreh)

The ROK's plan to use its own cryptographic technique ARIA for the
security systems of Internet phone calls from government agencies
could fall apart under pressure from the U.S., which says that it
would violate WTO rules if the ROK does not use the international
cipher standard AES. (Hankyoreh)


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

The UN Security Council on April 13 adopted the presidential
statement on North Korea's April 5 rocket launch, which unanimously
condemns the action as a contravention of UNSC Resolution 1718
banning the country from all missile-related activities. (Chosun,
All TVs)

In response, North Korea announced yesterday that it will resume its
nuclear weapons program and will never again take part in the
Six-Party Talks. (All) This is North Korea's typical brinkmanship
tactic to force bilateral dialogue with the U.S. (JoongAng, Chosun)
Experts say that although Pyongyang threatens to build light-water
nuclear reactors again, it is just bluffing to gain an advantage in
negotiations with the U.S. because the North has no economic or
technological capacity to build such a reactor on its own. (Dong-a,
Hankoyreh) Some observers say that North Korea's threats can be
construed as Pyongyang declaring that it will develop a highly
enriched uranium nuclear program. (Hankook) Meanwhile, concerns are
growing that the detention of three Korean and American hostages may
be prolonged. (Dong-a)


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

-North Korea
--------------

Conservative Chosun Ilbo reported that the UN Security Council on
April 13 adopted the presidential statement on North Korea's rocket
launch, which unanimously condemns the action as a contravention of
UNSC Resolution 1718 banning the country from all missile-related
activities. All newspapers reported on North Korea's announcement
yesterday that it will resume its nuclear weapons program and will
never again take part in the Six-Party Talks. Left-leaning Hankyoreh
Shinmun added that the North ordered U.S. and UN personnel at
Yongbyon to leave the country.

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Conservative Dong-a Ilbo said that because of North Korea extreme
reaction, international efforts to resolve the North Korean nuclear
and missile issues have returned to the starting point, and the
Six-Party Talks faces its biggest crisis in five years and seven
months. However, the newspaper and left-leaning Hankyoreh Shinmun
quoted experts that although Pyongyang threatens to build
light-water nuclear reactors again, it is just bluffing to gain an
advantage in negotiations with the U.S. because the North has no
economic or technological capacity to build such a reactor on its
own.

Meanwhile, Dong-a Ilbo reported that concerns are growing that the
detention of three Korean and American hostages may be prolonged.

Moderate Hankook Ilbo reported that if North Korea restores the
reprocessing facilities to their original state, they can produce an
additional 6 to 8 kilograms of plutonium. The newspaper quoted some
observers that North Korea's threats to construct its own
light-water nuclear reactor seem to be a declaration that it will
develop a highly enriched uranium nuclear program. Hankook Ilbo also
reported that whether the presidential statement is effective is up
to China, North Korea's economic supporter, and quoted an ROK
high-ranking representative to the UN as saying, "The presidential
statement is aimed at bringing the North back to the Six-Party
Talks.If the North expresses its intention to come back to the
negotiation table, UN sanctions could be shelved." The newspaper
also speculated that the presidential statement will prolong the
cooling-off period following the rocket launch, thereby slowing down
the USG's road map for North Korea.

Hankyoreh Shinmun cited a source well-versed in the Obama
Administration's North Korea policy as saying, "The U.S. will
closely cooperate with other Six-Party countries to refrain from
further provoking the North or aggravating the current situation.
For the time being, the Obama Administration is expected to carry
out the policy of "good-will ignorance (of the North)." Meanwhile,
China is expected to send a special envoy to Pyongyang to placate
the North.

Right-of-center JoongAng ilbo and conservative Chosun Ilbo construed
North Korea's response as its typical brinkmanship tactic to force
bilateral dialogue with the U.S. JoongAng Ilbo said that the North
opened the possibility of additional nuclear tests by declaring that
it will not be bound by any existing agreements.

JoongAng Ilbo editorialized: "The North's nuclear and missile
program endangers world peace and can be regarded as an
international criminal act rather than a defense of its sovereignty.
How can Pyongyang talk of sovereignty infringement when it poses
such danger to the international community? We may have to take up
full membership in the Proliferation Security Initiative... We need
some kind of defense mechanism to deter the North from its constant
provocation."

Dong-a llbo editorialized: "North Korea is gravely mistaken. The
president's statement contains not only the council's determination
to not condone the North's provocation, but also concrete measures
to implement sanctions on the North. The world must show the North
this time that brinksmanship, a tactic Pyongyang employs whenever
driven into a corner, is no longer effective."

Hankook Ilbo editorialized: "In this situation, a confusing debate
over (North Korea) policy or hasty reaction would not be beneficial.
We should wait for North Korea to calm down and change (its
attitude),while keeping the door of dialogue open."

Hankyoreh Shinmun editorialized: "North Korea is not hiding its
intention to focus on bilateral talks with the U.S., rather than on
the Six-Party Talks. This intention was revealed when the North
specifically pointed to Japan, not the U.S., and the UN presidential
statement, as reasons to boycott the Six-Party Talks... Through
escalating tensions, North Korea intends to have direct negotiations
with the U.S. To manage the situation in a stable way and put the

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Six-Party Talks back on the right track, a united effort by
Six-Party countries is essential."

Chosun Ilbo editorialized: "International pressure on North Korea
can succeed only with the participation of China, which holds the
lifeline supporting the North's leadership. That can only be
possible if measures against North Korea are implemented at a level
where China can participate openly - or at least implicitly agree to
them. But the diplomacy pursued by South Korea and the U.S. has
stumbled at this stage. As a result, sanctions against North Korea
are failing to change the country's attitude."

Moderate Seoul Shimun and conservative Segye Ilbo carried
editorials under the respective headline, "North Korea's Boycott of
Six-Party Talks Will Only Deepen Its Isolation" and "Will North
Korea Go down the Road of Self-Destruction?"








All newspapers gave coverage to the ROKG's announcement today that
it will become a fully operating member of the Proliferation
Security Initiative (PSI). Hankyoreh Shinmun reported that this
could increase the possibility of armed conflict between the two
Koreas and lead to conflict between the ROK and China.

-Cuba
--------------
All newspapers reported that the U.S. lifted its blockade of Cuba
for the first time in 47 years. JoongAng Ilbo describes it as the
first product of the Obama Administration's "smart diplomacy,"
adding that this move is notable because it could impact U.S.-North
Korea relations.


OPINIONS/EDITORIALS


N. KOREA PURSUING ITS OWN DESTRUCTION
(Dong-a Ilbo, April 15, 2009, Page 31)

The U.N. Security Council has unanimously adopted a president's
statement condemning North Korea's April 5 rocket launch. Pyongyang
said in response that it will boycott the Six-Party denuclearization
talks and resume its nuclear activity. The communist country is
using a tit-for-tat strategy to defy the international community,
while threatening world peace by developing nuclear weapons and
long-range ballistic missiles.

The North, however, asked for the president's statement. Despite
global warnings not to, it launched a long-range missile and
conducted a nuclear test in 2006. This prompted the council to
adopt Resolution 1718 prohibiting the North from engaging in missile
activity. When Pyongyang returned to the Six-Party Talks
afterwards, the council withheld the implementation of sanctions on
the North. The communist country, however, has launched another
missile under the guise of a satellite. Given the North's betrayal,
the council`s statement seems like a mere slap on the wrist.
Nevertheless, Pyongyang has reacted with the most drastic measures.


The North Korean Foreign Ministry stated yesterday, "We will never
participate in Six-Party Talks or be bound any longer to any
agreement of the talks." It also threatened to strengthen its
nuclear deterrence by reprocessing spent fuel rods in its main
reactor at Yongbyon, review the construction of light-water
reactors, and pursue its right to the peaceful use of space. The
North is set to undermine 14 years of denuclearization efforts by
the world's leading countries. This is no surprise, however, given
the North's previous attempts to sabotage the Six-Party Talks
through false accusations. By blasting the council's statement, the

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North has clearly showed its intent not to abandon its nuclear
ambitions.

The reclusive country is gravely mistaken, however. The president's
statement contains not only the council's determination not to
condone the North's provocation, but also concrete measures to
implement sanctions on the North. For the export of weapons of mass
destruction, certain conventional arms and luxury goods to the North
are likely to be banned and the North's WMD-related assets will be
frozen. Besides suffering isolation from the international
community, the North is also being hit by severe economic difficulty
and food shortages. Now that China and Russia have endorsed the
statement, the North has nobody to turn to. The communist country
is now making frantic efforts to defy the condemnation, but this
will only invite its self-destruction.

The world must show the North this time that brinksmanship, a tactic
Pyongyang employs whenever driven into a corner, is no longer
effective. The ROK, the U.S. and Japan must react in unison. For
their part, China and Russia should actively join in punishing the
North. No less important is Seoul's determination. The ROK should
declare its full-fledged participation in the U.S.-led Proliferation
Security Initiative and be thoroughly prepared for provocations by
the North.

(This is a translation provided by the newspaper, and it is
identical to the Korean version.)


REIGNITING NUCLEAR ISSUE
(JoongAng Ilbo, April 15, 2009, Page 46)

North Korea declared yesterday that the international community
leaves it no choice but to restart its nuclear program. The
declaration came as a swift response to the United Nations Security
Council's unanimously adopted statement condemning the North's April
5 rocket launch. The council said the launch breached an earlier
Council resolution banning the country from ballistic missile
activity.

North Korea reiterated that it will walk away from the Six-Party
Talks aimed at denuclearization. Before carrying out its long-range
rocket launch in spite of international warnings, Pyongyang
threatened to boycott the talks if the United Nations took action in
response to what it called its satellite program.

North Korea's response yesterday was to say it will reactivate its
Yongbyon nuclear plant, which was shut down in 2007, and restart
reprocessing used nuclear fuel rods.

In short, North Korea said it will return to nuclear weapons
development.

Pyongyang also said it will consider building its own light-water
nuclear reactor, which hints at the development of a uranium
enrichment program. The belligerent nation also suggested it will
consider giving up its United Nations membership.

North Korea appeared well prepared for possible international action
following its rocket launch. It issued a strongly worded statement
berating the Security Council for its statement shortly after it was
announced.

Pyongyang may already have a second nuclear test card up its
sleeves.

As the Security Council states, with the endorsement of China and
Russia, North Korea's rocket launch was a clear violation of its
2006 Resolution 1718 banning any missile tests by the country. The
North's nuclear and missile program endangers world peace and can be
regarded as an international criminal act rather than defense of its
sovereignty.

How can Pyongyang talk of sovereignty infringement when it poses

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such danger to the international community? What does it think it
can gain by threatening the world in such an irrational manner?

We do not believe North Korea will carry out its threats, and we
hope the international community will try to resolve this matter
diplomatically and peacefully through the existing Six-Party
channel. We trust Pyongyang will listen.

Our government will have to deal with this matter discreetly, and we
may have to take up full membership in the Proliferation Security
Initiative. North Korea may be further provoked if we join the
U.S.-led PSI, but we need some kind of defense mechanism to deter
the North from constant provocation. We also need to protect our
people.

(This is a translation provided by the newspaper, and it is
identical to the Korean version.)


PROBLEMATIC DECISIONS MADE BY BOTH KOREAS
(Hankyoreh Shinmun, April 15, 2009, Page 27)

Yesterday North Korea, through a statement from the Foreign
Ministry, said it will not participate in the Six-Party Talks and is
going to strengthen its "nuclear deterrent for self-defense." It
was an expected response to the United Nations (UN) Security
Council's presidential statement that denounced Pyongyang's recent
rocket launch for violating Security Council Resolution 1718. North
Korea had said, "there will be no Six-Party Talks" if the matter of
its rocket launch was discussed at the UN Security Council.
Nonetheless, its reaction is stronger than expected.

It said it "will no longer participate in the talks, nor will it be
bound to any agreement of the Six-Party Talks," and will therefore
resume normal operations of its nuclear facilities and reprocess its
spent fuel rods. Denying the Six_Party Talks that have become the
diplomatic framework for resolving issues facing the Korean
peninsula, such as the North Korean nuclear issue for the past five
years, does not signal a good and proper course of action.

North Korea is not hiding its intention to focus on bilateral talks
with the U.S., rather than on the Six-Party Talks. This intention
was revealed when the North specifically pointed to Japan, not the
U.S., and the UN presidential statement, as reasons to boycott the
Six-Party Talks. North Korea has characterized Japan as
"villainously trying to thwart the Six-Party Talks from the start"
and "is openly even trying to enact sanctions of its own because of
our satellite launch." Through escalating tensions, North Korea
intends to have direct negotiations with the U.S. The North is
taking a very dangerous approach. Bilateral talks with the U.S.
cannot replace the Six-Party process, and it could make the
situation on the Korean peninsula worse in unpredictable ways.
North Korea needs to return to the Six-Party Talks immediately.

To manage the situation in a stable way and put the Six-Party Talks
back on the right track, a united effort by Six-Party countries is
essential. Our own government in the ROK, however, is doing the
opposite. Yesterday afternoon, the Lee Myung-bak Administration
made its final decision in favor of full participation in the
Proliferation Security Initiative (PSI). North Korea has for some
time now been saying it will consider participation "a declaration
of war" and would "respond firmly." The Lee Administration says the
decision is not a form of sanction against North Korea's rocket
launch and that it is merely acting on something it had already been
considering. However, full participation in PSI is a type of
sanction if you consider the timing and circumstances. North
Korea's reaction to the concerns and warnings of the international
community are of course a problem, but that does not rationalize our
government's actions as it now assumes the lead in escalating
tensions.

(This is a translation provided by the newspaper, and it is
identical to the Korean version.)


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HOW TO DEAL WITH N. KOREA'S INCREASING PROVOCATION
(Chosun Ilbo, April 15, 2009, Page 35)

The United Nations Security Council on Monday unanimously adopted a
statement condemning North Korea's rocket launch and accusing
Pyongyang of violating UN Resolution 1718. The Security Council
said it would punish North Korea by reviving sanctions in Resolution
1718 passed in 2006, but that were not implemented while there was
progress in the six-country talks. In protest, North Korea's
Foreign Ministry said in a statement carried by the official Korean
Central News Agency on Tuesday, "The DPRK (North Korea) will never
participate in such Six-Party Talks." North Korea added it would
reprocess the spent fuel rods that were extracted from the nuclear
reactor in Yongbyon, pursue the construction of a light water
reactor and continue its long-range rocket launches. The communist
country has responded to criticism by restarting its nuclear
program, which had been frozen for the past two years under the
framework of the six-party talks.

The ROK's presidential spokesman Lee Dong-kwan said on Tuesday that
the Lee Myung-bak Administration would soon declare its full
participation in the Proliferation Security Initiative (PSI),a
U.S.-led initiative that aims to interdict the transfer of banned
weapons and related technology. Launched in 2003, a total of 94
countries are taking part in the PSI, in order to cooperatively
prevent the spread of nuclear and missile technology to rogue states
or international terrorists. But the ROK has withheld from
participating in the initiative, mindful of North Korea's protest.
The North previously claimed that it would consider the ROK's
participation in the PSI a "declaration of war."

Over the past few months, the ROK, the U.S. and Japan have vowed to
address North Korea's rocket launch at the UN Security Council,
while North Korea has declared it would scuttle the Six-Party Talks
if the UN implements sanctions. The problem is whether the ROK
government has a step-by-step plan to respond to the crisis as it
worsens. Once implemented, options such as UN Security Council
sanctions and participating in the PSI quickly narrow the range of
restraints against North Korea. It is obvious North Korea will
ignore sanctions placed against it and proceed with further acts of
provocation.

Following the Security Council's statement, China's Foreign Ministry
spokesman said Beijing had opposed the implementation of sanctions.
International pressure on North Korea can succeed only with the
participation of China, which holds the lifeline supporting the
North's leadership. That can only be possible if measures against
North Korea are implemented at a level where China can participate
openly - or at least implicitly agree to them. But the diplomacy
pursued by South Korea and the U.S. has stumbled at this stage. As
a result, sanctions against North Korea are failing to change the
country's attitude.

The ROK government appears to consider North Korea's protest against
Seoul's participation in the PSI and sanctions as expected rites of
passage. But problems involving North Korea could escalate into a
major national security crisis due to a simple misjudgment. The
ROK's participation in the PSI carries the possibility of triggering
a military confrontation, should the U.S., Japan and other countries
seek to halt a suspicious North Korea vessel in ROK waters. If that
happens, the government must have a preconceived plan of action on
how it intends to deal with the situation according to different
crisis scenarios.

(This is a translation provided by the newspaper, and it is
identical to the Korean version.)


NORTH KOREA SAYS THERE WILL BE NO MORE SIX-PARTY TALKS
(Hankook Ilbo, April 15, 2009, Page 35)

North Korea announced that it will never join the Six-Party Talks
again. In response to the UN Security Council's presidential

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statement condemning North Korea's rocket launch, North Korea
boycotted all talks including negotiations for denuclearization.
North Korea went so far as to say that it will not be bound by any
agreement and will halt its nuclear disablement process. This
reaction was no surprise, but was a bit stronger than expected. It
is important to figure out North Korea's intention rather than
rebuke the North for its reckless action or raise a dispute over
(the ROK's) North Korea policy.

Even prior to its rocket launch, North Korea vowed to walk away from
the Six-Party Talks if the rocket launch is brought before the UN
Security Council. Therefore, it is not surprising that North Korea
reacted strongly to the UNSC's presidential statement which contains
more detailed sanctions than the UNSC's resolution adopted following
North Korea's nuclear test in 2006.

It is questionable how effectively the UN Security Council will
implement sanctions on North Korea. The ROK's full participation in
the Proliferation Security Initiative (PSI) is unlikely to produce
the effects ROK conservatives expect. North Korean ships could
avoid the ROK territorial waters. Moreover, since ROK ships sailing
near North Korean territorial waters outnumber North Korean ships
(passing the ROK territorial waters),we may suffer greater adverse
effects (from full participation in PSI.)

North Korea pushed for the rocket launch despite international
criticism and possible sanctions in order to showcase its leader Kim
Jong-il's intention to become a more powerful and prosperous nation.
Considering Kim Jong-il's health and his unstable succession plan,
North Korea will exaggerate external threats to consolidate its
internal unity, which is the North's ultimate goal, and maintain a
tough stance.

In this situation, a confusing debate over (North Korea) policy or
hasty reaction would not be beneficial. We should wait for North
Korea to calm down and change (its attitude),while keeping the door
of dialogue open.


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

NORTH KOREA BOYCOTTS SIX-PARTY TALKS AS EXPECTED AND SEEKS
'CLINTON-STYLE BILATERAL TALKS'
(Chosun Ilbo, April 15, 2009, Front page)

By political reporter Kang In-seon

Eight years of the Bush Administration was a nightmare for North
Korea. Now North Korea wants to sit face-to-face with the Obama
Administration at a new negotiating table. North Korea sent an
invitation letter for talks through the Taepodong-2 rocket. The
U.S. responded with the UN Security Council presidential statement
condemning the rocket launch. On April 14, North Korea countered
with a strong message that the relations between North Korea and the
U.S. during the Bush Administration are invalid and they should
return to (how they communicated bilaterally with) the Clinton
Administration.

North Korea's Foreign Ministry issued a statement denouncing the
UNSC's presidential statement. North Korea said it will never
participate in the Six-Party Talks again. North Korea added it will
review developing its own light water reactors to possess nuclear
capability. North Korea went on to say that it will reprocess the
spent fuel rods to restore nuclear facilities which have been
disabled under the agreement of the Six-Party Talks.

This reaction by North Korea was expected. Even prior to the rocket
launch, North Korea warned on April 24 that if its rocket launch is
brought before the UN Security Council, it would lead to collapse of
the Six-Party Talks. What is the reason that North Korea insists on
boycotting the Six-Party Talks while threatening to rescind the
existing agreements under the Six-Party Talks and restart its
nuclear process? North Korea views that it can not achieve the deal

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it craves within the framework of the Six-Party Talks which were
initiated during the Bush Administration.

North Korea continues to send messages to the Obama Administration
that it is interested in bilateral talks with the U.S. North Korea
conveyed its willingness to hold bilateral talks in order to improve
the U.S.-North Korea relations through Park Han-sik, Professor at
the University of Georgia, and Leon Sigal, Director at the Social
Science Research Council, who have built up close relations with
North Korea. North Korea is saying that it wants to go back to the
bilateral talks that it held with the Clinton Administration.

However, the United States will not engage in talks with North Korea
soon. Bush's policy of not rewarding bad acts will not be discarded
by the Obama Administration. Since North Korea flagrantly violated
UN Security Council Resolution 1718 (adopted after its 2006 nuclear
test),the U.S. should at least pretend to chastise North Korea in
order to maintain international rules. Also, North Korea's rocket
launch proved that North Korea's long-distance missile capability
does not yet pose a threat to the U.S. Therefore, the U.S. has no
reason to hurry.

At present, President Obama is focused on the U.S. domestic economy
as well as issues of Afghanistan and Iraq. He is thus not in a
position to commit fully to the North Korean issue. The Obama
Administration has not formed a team for addressing the North Korean
issue, nor has it completed reviewing its North Korea policy.

However, experts believe that Obama would not keep the same
hard-line policy the Bush Administration adopted during its first
term. The U.S. will not, however, also sit back and watch North
Korea bolster its nuclear capability, now that the North has vowed
to restore its nuclear facilities. During his candidacy, Obama
criticized the U.S.'s North Korea policy with the logic that the
Bush Administration increased the North's nuclear capability while
refusing to hold bilateral talks.

Under what pretext would U.S.-North Korea talks resume? Former ROK
Foreign Minister Han Sung-joo said that the issue of two detained
U.S. journalists could lead to the bilateral talks. Special
Representative for North Korea policy Bosworth would visit North
Korea to discuss ways (to secure the release of) the detained
journalists. Those visits could lead to bilateral talks for
addressing nuclear and missile issues.


ROK'S PLAN TO ADOPT ITS OWN PHONE ENCRYPTION TECHNIQUE COULD FALL
APART UNDER U.S. PRESSURE
(Hankyoreh Shinmun, April 15, 2009, Page 2)

By Reporter Kim Jae-sup

The U.S.: "If the ROK does not follow the international standard, it
would violate the WTO agreement."

Experts: "The agreement does not apply to security matters."

The ROK's plan to encrypt Internet phone calls from government
agencies by using its own standard cryptographic technique is on the
verge of falling apart. This is because the U.S. says that it would
violate World Trade Organization (WTO) rules. The U.S. is thus
asking the ROK to "adopt the international standard instead."

Industry officials said on April 14 that the ROKG is reconsidering
its plan to encrypt Internet phone calls from government agencies by
using its own standard cryptographic technique "ARIA." U.S. telecom
equipment makers, such as Cisco and Abaya, are asking the ROK to use
the international encryption standard "AES" for Internet phone
calls, which government agencies make for an official purpose. The
U.S. Embassy in Seoul and the office of the U.S. Trade
Representative are also applying pressure on the ROK. A Cisco
official said, "We are proposing to the ROKG that it should follow
the international standard."


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The National Information Society Agency, which has been in charge of
replacing telephones at government agencies with Internet-based
phones, decided last December to adopt the ARIA standard to prevent
eavesdropping. The ROKG notified Internet phone equipment makers of
the decision through an explanatory meeting. ARIA is an encryption
technology developed by the National Security Research Institute, an
agency affiliated with the National Intelligence Service. The ROKG
plans to replace 900,000 phones at the Ministry of Public
Administration and Security and local government agencies with
Internet phones. It costs an estimated 400 billion won only to
purchase necessary equipment.

The U.S. government and Internet equipment companies claim that the
ROK's decision to use the ARIA technique for official Internet phone
calls would violate Article 6, Paragraph 2 of the WTO agreement on
government procurement, which stipulates, "Technical specifications
prescribed by procuring entities shall be based on international
standards, where such exist." The U.S. also included this matter in
its first annual National Trade Estimate Report on Foreign Trade
Barriers after President Obama's inauguration to put pressure on the
ROKG.

However, ROK experts argue that the ROKG's decision to use the ARIA
technique does not violate the WTO agreement because "Nothing in the
Agreement shall be construed to prevent any Party from taking any
action or not disclosing any information which it considers
necessary for the protection of its essential security interests."
The White House and the Pentagon also use separate encryption
techniques. Lawyer Oh Jin-wook at the Hanseo law firm said, "The
adoption of the ARIA technique is aimed at protecting official phone
conversations from eavesdropping, and therefore, it is considered as
a step taken for public purposes, such as national security."
Lawyer Oh added "In particular, since the technology to load the
ARIA apparatus into phone equipment is made public on the Internet,
and a test bed for the technology is available to everyone, it is
difficult to see how or in what ways U.S. companies experience
discrimination when using ARIA."

The National Information Society Agency plans as early as late this
month to issue Requests for Bid Proposal to select Internet phone
services providers for government agencies.


STEPHENS