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UNCLAS SECTION 01 OF 06 SEOUL 000141 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; FEBRUARY 1, 2010 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
No Progress Made on Inter-Korean Summit 
during Last Year's S-e-c-r-e-t Contacts between Two Koreas 
 
JoongAng Ilbo 
Phone Conversations of 35,000 Police Officers in Seoul to be 
Searched as Part of Efforts to Fight Corruption in Public Sector 
 
Dong-a Ilbo 
ROK's National Standing Undermined 
by Social Conflict and Politics 
 
Hankook Ilbo 
There are Already Signs of Money and Mudslinging, 
with 120 Days Still to Go before Local Elections 
 
Hankyoreh Shinmun, All TVs 
China Suspends Military Exchanges with U.S. 
over Taiwan Arms Sales 
 
Segye Ilbo 
Survey: 54 Percent of Residents in Chungcheong Region 
Favor Holding Referendum on Sejong City 
 
Seoul Shinmun 
President Lee: "It is Possible to Discuss 
'Grand Bargain' Deal with N. Korea" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
President Lee Myung-bak, in a Jan. 30 interview with CNN, said that 
the time is approaching for North Korea to answer the question 
whether it will ultimately abandon its nuclear program. (All) 
 
According to ruling circles and ROKG officials, the two Koreas held 
two rounds of s-e-c-r-e-t meetings in the North Korean border city 
of Kaesong last year to discuss a possible inter-Korean summit, but 
failed to narrow differences over the North's nuclear issue, ROK 
prisoners of war and abduction victims and humanitarian aid. 
(Chosun) 
 
Deputy Secretary of State James Steinberg, in a Jan. 29 seminar in 
Washington, said that (the U.S.) will strongly support any measures 
the ROK President takes toward an inter-Korean summit. (Chosun, 
Hankook, Segye, KBS, MBC) 
 
President Barack Obama, during a Jan. 29 gathering of House 
Republicans in Baltimore, Maryland, emphasized the need to ratify 
the KORUS FTA. He was quoted: "What is also true is that the EU is 
about to sign a trade agreement with the ROK; which means right at 
the moment when they start opening up their markets, the Europeans 
might get in there before we do." (Chosun, JoongAng, Segye, All 
TVs) 
 
The two Koreas will hold working-level talks today on the operation 
of the joint Kaesong Industrial Complex in North Korea. (All) The 
North is likely to demand a twofold increase in wages for its 
workers employed by ROK companies at the complex. (Chosun) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
Two UN special envoys will visit North Korea on Feb. 9 to discuss 
restoring stalled high-level dialogue between the UN and North 
Korea, as well as the North Korean nuclear issue. (JoongAng, Dong-a, 
Hankook, Hankyoreh, Segye, Seoul) 
 
SEOUL 00000141  002 OF 006 
 
 
 
 
MEDIA ANALYSIS 
-------------- 
 
President Obama's State of the Union Speech 
All ROK media covered President Obama's State of the Union address 
on Jan. 27. 
 
Coverage highlighted the President's statements: "These diplomatic 
efforts have also strengthened our hand in dealing with those 
nations that insist on violating international agreements in pursuit 
of nuclear weapons.  That's why North Korea now faces increased 
isolation, and stronger sanctions - sanctions that are being 
vigorously enforced; " and "If America sits on the sidelines while 
other nations sign trade deals, we will lose the chance to create 
jobs on our shores. ... That's ...why we will strengthen our trade 
relations in Asia and with key partners like South Korea and Panama 
and Colombia." 
 
Most media interpreted these remarks as a warning to North Korea of 
stronger sanctions if it continues to pursue nuclear weapons, and 
his roundabout way of stressing the need to ratify the KORUS FTA. 
 
Moderate Hankook Ilbo wrote in the headline: "U.S. Reconfirms 
Intention to Reject N. Korea's Call for Peace Treaty before the 
North's Return to Six-Party Talks." 
 
Left-leaning Hankyoreh Shinmun editorialized: "President Obama's 
speech ran 71 minutes but only nine minutes were devoted to 
international affairs.  It is said that a State of the Union 
Address, in recent years, has never treated international affairs as 
lightly as this one.   ... There are many international issues that 
cannot be resolved without active U.S. efforts; It is still 
important for America to play an appropriate role in the 
international community. ... Since the launch of the Obama 
Administration, North Korea has advocated a resolution of its 
nuclear issue through dialogue, increasing the possibility of a 
breakthrough on the nuclear issue, depending on the U.S.'s attitude. 
  It is high time for a more forward-looking role from the U.S." 
 
-N. Korea 
--------- 
North Korea's official Korean Central News Agency's report yesterday 
- that an American is being held in North Korea for illegally 
crossing its border with China on Jan. 25 - captured the attention 
of the ROK media.  According to media reports, the North did not 
identify him or give any details about why he entered the North.  If 
confirmed, it will be the second such incident in a month, according 
to media reports. 
 
Most media carried reports that North Korea proposed talks with the 
United Nations Command (UNC) on Jan. 27 to discuss resuming the 
joint recovery of the remains of U.S. soldiers killed in the Korean 
War.  The proposal coincided with the North's artillery shootings 
into waters near the Northern Limit Line in the Yellow Sea, the de 
facto maritime border between the two Koreas. 
 
Chosun Ilbo editorialized: "North Korea has been employing a 
two-track strategy toward the ROK and the U.S. since late last year 
by aggressively seeking economic cooperation and humanitarian aid on 
one hand while heightening military tension on the other. ...  The 
reason why North Korea continues to make provocations, such as the 
latest artillery fire near the NLL, is that it is caught in an 
obsolete mindset that threats and appeasement are the most effective 
way to elicit aid from the ROK and the U.S. ... Only if North Korea 
stops its nuclear development and provocations and returns to the 
Six-Party Talks and inter-Korean dialogue will the door open for 
economic aid for the North." 
 
Moderate Hankook Ilbo wrote in the headline: "'Double-faced' N. 
Korea; North Suggests Joint Recovery of Remains of Fallen U.S. 
Soldiers while Firing Artillery... an Attempt to Raise Negotiating 
Power." 
 
SEOUL 00000141  003 OF 006 
 
 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
OBAMA'S STATE OF THE UNION ADDRESS LEAVES SOMETHING TO BE DESIRED 
(Hankook Ilbo, February 1, Page 39) 
 
By Washington Correspondent Hwang Yu-seok 
 
U.S. media is keenly evaluating President Obama's first year in 
office.  Special attention is being drawn to Obama because his one 
year in office carries symbolic significance and he opened a new 
historical chapter a year ago. 
 
President Obama's first year has been passionate.  It has been the 
year of an outpouring of energy and drive, which would be hard to 
find in a fully democratic developed country.  To put it 
differently, his first year has been full of ups and downs, and 
controversy.  Some members of the U.S. public said they feel dizzy 
because (President Obama) is trying to do too many things at one 
time.  Liberals including the Democratic Party considered it a 
historical duty to implement Obama's reform, while conservatives 
criticized him for engaging in maverick politics in defiance of 
public opinion.  Obama's popularity rating, which hovered around 80 
percent, dropped to 50 percent in less than a year.  There has not 
been any U.S. president who had such a steep rise and decline in the 
popularity rating. 
 
Republicans won off-year gubernatorial elections in New Jersey and 
Virginia - two states that Obama won a year earlier.  In another 
startling upset, a Republican won the Massachusetts Senate seat, 
which had been held by the Kennedy family for over 50 years.  Some 
people say that now there is no safe zone for the Democratic Party. 
U.S. media's frantic coverage of Obama's first year is 
understandable because he experienced "heaven and hell." 
 
There are some reasons for assessing Obama's first year in office as 
disappointing.  First of all, he sought policies that were too 
"leftist." The U.S. public is dissatisfied with Obama's expanded 
government intervention and the astronomical fiscal deficit brought 
on by his reform efforts.  This may be an inevitable choice for him 
in order to overcome an economic crisis.  In addition, it could be 
controversial to define his economic policy from an ideological 
perspective.  However, it is indisputable that now the U.S. public 
is puzzled by the unprecedented level of big government.  This is 
why the U.S. public, which by nature abhors government intervention, 
may be attracted to the Republican Party's political moves.  A 
(U.S.) columnist said that the U.S. is basically a rightist country. 
 A liberal leader should know how to conceal that he is too 
"left-leaning." 
 
Others note that President Obama pursued reform at too fast a speed. 
 As similar mistakes are often made by the government in its first 
term, it seemed that Obama blindly believed that he would be able to 
carry out any reform he wants.  Newsweek made an interesting 
observation that Obama failed to win the hearts of the public 
because he acted too rationally.  His cool-headedness, intellect and 
thoughtfulness were virtues that earned him victory in the 
presidential election.  But after he took office, those elements 
made him appear cold and disinterested. 
 
President Obama's January 27 State of the Union Address provided him 
with a chance to reveal his visions for reform to the public. 
However, he failed to win understanding from the opposition party 
and the public because he identified his administration's problems 
as 'historical challenges' the U.S. has confronted in the past.  The 
public did not want to hear about a raft of economic measures but 
how the President will run politics in a flexible manner, i.e. how 
he will put congressional politics back to normal.  President Obama, 
however, stopped short of delivering this. 
 
It seems that with midterm elections looming, it will be harder for 
the Obama Administration to pursue reform such as health care.  We 
 
SEOUL 00000141  004 OF 006 
 
 
sympathize with a remark by a Republican who said that what 
President Obama needs is not eloquent words but actions. 
 
 
LESSONS FROM THE REPUBLICAN PARTY AND OBAMA 
(Dong-a Ilbo, February 1, Page 31) 
 
Republican lawmakers of the U.S. House of Representatives invited 
President Barack Obama to a policy conference Friday.  At the GOP 
House Issues Conference that lasted for 90 minutes, Obama criticized 
and expressed his regret over the party's policies.  Republican 
lawmakers, however, observed proper decorum. 
 
The Republican Party invited Obama to show the American people that 
it is not a party of "no" but a party of policy that can discuss 
issues with everyone with an open mind.  For his part, Obama might 
have accepted the invitation as an opportunity to explain his 
policies to the people and refute the opposition party's criticism. 
Whatever the political reason both sides (had for getting together), 
ROK politicians should learn a lesson from President Obama and House 
Republicans, who willingly came together to discuss contentious 
issues. 
 
In the ROK, too much tension exists between the president and 
opposition parties and between the ruling and opposition parties. 
They keep stressing the importance of communication, but nobody 
takes the initiative.  Insisting on a "debate to the end," like 
picking a fight, is not a sincere way to begin dialogue. 
 
Main opposition Democratic Party Chairman Chung Sye-kyun put forth a 
week ago a "new Democratic Party plan" aimed at wealth distribution 
and economic growth.  He suggested the same plan eight months ago. 
Nevertheless, his party, which dominated parliament for 10 years, 
has yet to present itself as an alternative party capable of taking 
power even though two years have passed since it lost power. 
Rather, it continues to stand against every policy the ruling party 
pursues.  The leftist Democratic Labor Party (DLP) which marked its 
10th anniversary Saturday, is struggling because the majority of the 
country's workers have turned against the party due to its pro-North 
Korea stance.  Although its approval rating once reached 18 percent, 
the (DLP) is having trouble fielding candidates for the local 
elections in June. 
 
Opposition parties are not the only ones to blame for the 
backwardness of ROK politics, but they must learn from the U.S. 
Republican Party, which invited the president to its policy 
discussion.  The ROK's opposition parties could make the same 
attempt over the revision to the Sejong City project.  The ruling 
Grand National Party is more to blame in this instance, however, 
because its members have failed to communicate with one another over 
a matter that could determine the nation's fate. 
 
ROK people's main concerns are job creation and economic recovery. 
Both the ruling and opposition parties must show different attitudes 
at the extra parliamentary session that begins today. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FEATURES 
-------- 
 
AMBASSADOR STEPHENS: "U.S. REMAINS PREPARED FOR ANY CONTINGENCY ON 
THE KOREAN PENINSULA" 
(Segye Ilbo, January 30, 2010, Page 6) 
 
By Reporter Kim Young-suk 
 
U.S. Ambassador to the ROK Kathleen Stephens said on January 29, "We 
remain fully prepared for any type of military contingency on the 
Korean Peninsula." 
 
Ambassador Stephens said in a breakfast lecture hosted by Giwoohwe 
 
SEOUL 00000141  005 OF 006 
 
 
Association at Gyeonggi Small and Medium Business Center, "(The 
U.S.) remains committed to the verifiable denuclearization of the 
Korean Peninsula," adding, "We are serious about denuclearization, 
and about the consequences of failing to denuclearize, such as 
isolation and sanctions." 
 
This reaffirmed U.S. President Barack Obama's statement in the State 
of the Union Address a day earlier, that if North Korea continues to 
insist on nuclear development, it will face stronger sanctions.  The 
Ambassador's remark is also apparently meant as a warning to North 
Korea, which fired dozens of coastal artillery shells in the waters 
around the Northern Limit Line (NLL) near the Yellow Sea. 
 
 
DID U.S.-NORTH KOREA "UNDER-THE-TABLE NEGOTIATIONS" ENTER FINAL 
STAGE? 
(Chosun Ilbo, January 30, 2010, Page 1, 5) 
 
By Reporter Ahn Yong-hyun 
 
Some ROKG foreign policy and security officials have recently said, 
"There seems to have been a great deal of progress in the U.S.-North 
Korea 'under-the-table negotiations' over the North Korean nuclear 
issue and the resumption of the Six-Party Talks.  We are concerned 
that the ROK may be alienated again (as it was when the 1994 Geneva 
Agreed Framework was reached.)" 
 
They say that the U.S. is pressuring the North to rejoin the Nuclear 
Nonproliferation Treaty (NPT) by no later than May, and the North is 
calling for the signing of a peace treaty and the easing of 
sanctions in return, although these are not being publicly 
mentioned. 
 
The North's Rodong Simnun said on January 29, "Given the tense 
situation on the Korean Peninsula, the 60th anniversary of the 
outbreak of the Korean War, and the current international situation, 
it is appropriate and right to have the peace treaty talks without 
delay."  Dongguk University Professor Kim Yong-hyun explained that 
in order to understand why the North is repeatedly asking for peace 
treaty talks despite the U.S.'s official rejection, we need to look 
at another piece of the puzzle - under-the-table negotiations 
between the U.S. and North Korea. 
 
Some observers say that because the ROKG is mindful of a deal being 
negotiated between the U.S. and the North, it keeps the door to 
inter-Korean dialogue open.  Although the North fired dozens of 
coastal artillery shells in the waters around the Northern Limit 
Line (NLL) near the Yellow Sea on January 27-28, the ROKG decided to 
have talks with the North about the Kaesong Industrial Complex as 
scheduled on February 1.  President Lee Myung-bak even held out the 
possibility of an inter-Korean summit within this year. 
 
Since the North withdrew from the NPT in January, 2003, at the 
height of the second nuclear crisis, it has stayed out of the NPT 
regime.  For U.S. President Barack Obama, who advocates for a 
nuclear-weapons-free world, it would be difficult for him to 
exercise his leadership at the Nuclear Security Summit in April and 
the NPT Review Conference in May with the North Korean nuclear issue 
left unsettled. 
 
An ROKG official said, "In a situation where the North Korean 
nuclear issue is considered the biggest challenge to the NPT regime, 
Pyongyang's return to the NPT would be viewed as an important step 
toward denuclearization." 
 
The Obama Administration particularly said in reference to the North 
Korean nuclear issue that it would "not buy the same horse twice." 
If the North puts on the table "a return to the NPT," a new card 
which was not used under the Bush Administration, it will serve as a 
justification for the U.S. to be flexible at its negotiations with 
the North. 
 
A subtle atmosphere of change is also found in the issue of relaxing 
sanctions, which the North demands as a condition for its return to 
 
SEOUL 00000141  006 OF 006 
 
 
the Six-Party Talks.  On January 21, the North announced a plan to 
establish the "State Development Bank" to attract foreign capital. 
This bank, however, can operate only when the U.S.'s financial 
sanctions are removed.  A diplomatic source said, "The U.S. might 
have told the North, 'If you set up a new bank and follow 
international standards, we will not impose additional sanctions, 
although it would be difficult to lift the existing financial 
sanctions.'" 
 
There is also talk that Pyongyang suggested establishing the offices 
of a trade representative in each other's country.  If the offices 
open, they would serve as a permanent channel of communication 
between the U.S. and the North, and the economic sanctions would 
pale into insignificance.  Some observers speculate that the reason 
why President Lee reiterated his proposal for the establishment of 
permanent liaison offices in each other's capital in his New Year's 
Address on January 4 may be that he was aware of the possibility 
that Washington and Pyongyang might open trade representative's 
offices in each other's country.  President Lee had proposed setting 
up permanent liaison offices in April, 2008. 
 
If there is sudden progress in the U.S.-North Korea relations, 
inter-Korean ties may likely take a back seat.  There are already 
signs that the North is trying to use its "Tongmi Bongnam" tactics 
of promoting exchange with the U.S. and blocking off the ROK.  The 
North is publicly saying that it will alienate the ROK at the peace 
treaty talks. 
 
However, a Blue House official predicts that the North's tactic of 
"excluding the South" will not likely work this time.  A researcher 
at a state-run institute noted, "Large-scale outside assistance is 
desperately needed to overcome the after-effect of the currency 
reform and to stabilize the regime for a hereditary power 
succession.  Since China will not share the entire burden of aid to 
the North, the North will have no choice but to rely on the ROK." 
At present, the North is active in having "lucrative" talks about 
the Kaesong Industrial Complex and the resumption of tourism of Mt. 
Kumgang.  An ROKG official said, "Since the ROK-U.S. alliance is 
strong and the North wants a lot from us, there is a remote 
possibility that we may be isolated.  However, I am not sure if we 
can take a strong initiative in inter-Korean relations." 
 
 
STEPHENS