O 260732Z NOV 08
FM AMEMBASSY SEOUL
TO SECSTATE WASHDC IMMEDIATE 2442
USDOC WASHDC 7832
DEPT OF TREASURY WASHINGTON DC
CIA WASHINGTON DC//DDI/OEA//
USCINCPAC HONOLULU HI//FPA//
SECDEF WASHINGTON DC
JOINT STAFF WASHINGTON DC
DIA WASHINGTON DC//DB-Z//

UNCLAS SEOUL 002279 
 
 
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 - November 26, 2008 
 
Features 
 
¶1. The ROK and the U.S. Agree to Transform Cash-based Financial 
Contribution for USFK Upkeep to a Goods Provision 
(Dong-a Ilbo, November 26, 2008, Page 8) 
¶2. 37% of ROK Lawmakers: "The KORUS FTA Would be Revised" 
(Dong-a Ilbo, November 26, 2008, Pages 1 and 6) 
 
 
Top Headlines 
 
Chosun Ilbo, Hankook Ilbo, All TVs 
Elder Brother of Former President Roh Moo-hyun Suspected of 
Receiving 1 Billion Won from Former CEO of Sejong Capital 
in Return for Influencing Sale of Sejong Securities 
to Nonghyup in 2006 
 
JoongAng Ilbo 
A Former Blue House Staff Member during the Roh Moo-hyun 
Administration Allegedly Managed 3 Billion Won Used for Bribery in 
Connection with Sale of Sejong Securities 
to Nonghyup 
 
Dong-a Ilbo 
National Tax Service Asks Prosecution to Investigate 
Park Yeon-cha, Chairman of Taekwang Industrial 
and Supporter of Former President Roh, 
on Suspicion of Tax Evasion 
 
Hankyoreh Shinmun 
ROKG Considers Injecting Public Funds into Banks 
 
Segye Ilbo 
U.S. Announces $800 Billion in New Lending Programs 
to Ease Credit 
 
Seoul Shinmun 
Prosecutors to Summon Former President Roh's Elder Brother 
 
 
Domestic Developments 
 
¶1. According to the Korea Chain Stores Association, Korea's leading 
discount stores - Lotte Mart, E-Mart and Homeplus - will resume 
sales of U.S. beef starting tomorrow because they judged that 
negative public sentiment about U.S. beef has subsided and that 
there is no reason to deny customers the choice to buy inexpensive 
U.S. beef as the real economy is suffering and commodity prices are 
going up. The three big retailers stopped selling U.S. beef in 
October of last year when bone fragments were found in some U.S. 
beef cuts. (All) 
¶2. According to a Nov. 19-25 opinion survey, 37 percent of 195 ROK 
lawmakers polled expected that the KORUS FTA would be revised. 
(Dong-a) 
¶3. U.S. Ambassador to the ROK Kathleen Stephens, in a Nov. 25 
meeting with main opposition Democratic Party lawmakers, said that 
the first task for the U.S. and the ROK governments is to pave the 
way for the KORUS FTA. (Dong-a) 
¶4. According to a military source, the ROK and the U.S. have agreed 
to jointly develop the Aerial Weapon Scoring System (AWSS), an 
unmanned reconnaissance warning plane, to counter the threat of 
North Korea's long-range artillery. (JoongAng, Dong-a) 
¶5. It was learned yesterday that the ROK and the U.S. have reached a 
tentative agreement to transform the current cash-based payment for 
the ROK's contribution to the upkeep of USFK to a goods provision 
gradually over the next three years. (Dong-a) 
 
 
International News 
 
¶1. According to the (North) Korean Central News Agency, North Korean 
leader Kim Jong-il has visited machinery and cosmetics companies in 
Shinuiju, a border town with China, in his second public appearance 
in eight days. The North Korean media did not reveal the exact date 
of the visit but released photos of Kim visiting the companies. 
(JoongAng, Dong-a, Hankook, Hankyoreh, Segye, Seoul, DailyNK) 
¶2. Kim's visit to the companies in Shinuiju, North Pyongan Province, 
is the first such visit outside of Pyongyang after a series of 
public appearances the reclusive leader made in recent months, and 
seems intended to show Kim's improved state of health. (JoongAng, 
 
Dong-a, Hankook, Hankyoreh, Segye) Furthermore, the fact that the 
North Korean leader visited the North's border town of Shinuiju 
raises speculation that North Korea might choose economic 
cooperation with China over the Kaesong Industrial Complex with the 
ROK. (JoongAng) 
 
 
Media Analysis 
 
North Korea 
Most of the ROK media gave prominent attention to a Nov. 25 report 
by the (North) Korean Central News Agency saying that North Korea 
leader Kim Jong-il has visited machinery and cosmetics companies in 
Shinuiju, a border town with China, in his second public appearance 
in eight days.  The ROK media reported that the North Korean media 
did not reveal the exact date of the visit but released photos of 
Kim visiting the companies.  In particular, most newspapers noted 
that Kim's visit to the companies in Shinuiju, North Pyongan 
Province, is the first such visit outside of Pyongyang after a 
series of public appearances the reclusive leader made in recent 
months, and commented that the visit might be intended to show Kim's 
improved state of health.  In particular, right-of-center JoongAng 
Ilbo took note of the fact that the release of Kim's photos came 
just a day after North Korea's announcement that it would end daily 
cross-border train service and tours of Kaesong city, and said that 
this might suggest that the North's recent hard-line measures 
against the ROK were orchestrated by leader Kim Jong-il.  JoongAng 
also speculated that the North Korean leader's visit to the border 
town of Shinuiju might indicate that Pyongyang could choose economic 
cooperation with China over the Kaesong Industrial Complex with the 
ROK. 
 
 
Features 
 
The ROK and the U.S. Agree to Transform Cash-based Financial 
Contribution for USFK Upkeep to a Goods Provision 
(Dong-a Ilbo, November 26, 2008, Page 8) 
 
By Reporter Cho Soo-jin 
 
It has been reported that the ROK and the U.S. have reached a 
provisional agreement that they will incrementally modify by 2011 
the method of Seoul's financial contribution for maintaining U.S. 
troops in the ROK. 
 
The conversion into a goods provision will be made step by step over 
the next three years, and the two sides also agreed on the rate of 
switchover for each year. 
 
An ROKG source said on November 25, "Realistically, it is not easy 
to make the transition happen at once given the long practice of 
cash payment.  We will make the transition step by step and as 
swiftly as possible." 
 
The ROKG plans to sign the deal with the U.S. and place its share of 
defense costs for next year (about 760 billion won) under 
consideration in the National Assembly for the budget deliberation 
by next week. 
 
At the fifth round of the high-level defense cost-sharing talks in 
Hawaii on November 20, local time, the ROK and the U.S. tentatively 
agreed to the 8th Special Measurement Agreement under which, in 
addition to the transition, the U.S. will be allowed to divert the 
defense fund to relocate the 2nd Infantry Division to Pyeongtaek. 
 
 
Features 
 
37% of ROK Lawmakers: "The KORUS FTA Would be Revised" 
(Dong-a Ilbo, November 26, 2008, Pages 1 and  6) 
 
By Reporters Kim Seung-ryeon, Park Jeong-hun, Goh Gi-jeong and Gil 
Jin-gyun 
 
Dong-a Ilbo conducted an opinion survey of 195 lawmakers on November 
19-25.  The respondents include lawmakers from the ruling Grand 
National Party (129), the opposition Democratic Party (50) and the 
Liberty Forward Party (5) 
 
¶1. Are you in favor of the ROK-U.S. FTA? 
 
Yes    87.7% 
(96.9%, 70% and 87.5% of the GNP, DP and LFP respondents 
respectively) 
No    9.7% 
(2.3%, 22% and 12.5% of the GNP, DP and LFP respondents 
respectively) 
Other    2.6% 
 
¶2. When do you think that the ratification of the ROK-U.S. FTA 
should be handled? 
 
In a regular session before the U.S.'s demand for renegotiation 
52.8% 
(78.3%, 2% and 12.5% of the GNP, DP and LFP respondents 
respectively) 
After the U.S.'s demand for renegotiation 38.5% (14.7%, 88% and 
75.5% of the GNP, DP and LFP respondents respectively) 
To be handled as a long-term task 4.1% 
(10% and 12.5% of the DP and LFP respondents respectively) 
Other    4.6% 
 
 
2-1. If you chose "a" in Question 2, please describe the reason. 
A renegotiation would hurt national interests 
The ROK needs to express its will by ratifying the ROK-U.S. FTA 
The ROK needs to prevent the U.S. from making demands that are 
disadvantageous to the ROK 
 
2-2. If you did not choose "a" in Question 2, please describe the 
reason. 
The U.S.'s demand for renegotiation is an established fact 
Measures are lacking for those sectors that would be hurt by the 
ROK-U.S. FTA 
It would be better for the ROK-U.S. alliance (GNP respondents) 
Due to the ratification issue, other pending issues might not be 
handled in a timely manner (GNP respondents) 
 
¶3. Is there any possibility that the ruling party will ram through 
the ratification? (this question is only for GNP lawmakers) 
 
a. The ruling party will try hard to reach an agreement with the 
opposition parties, but if necessary, it will ram through the 
ratification    63.6% 
b. It will handle the issue, excluding the opposition parties 
18.6% 
c. The issue cannot be handled if the opposition parties oppose 
11.6% 
d. Other    6.2% 
 
3-1. If you chose "a" or "b" in Question 3, please describe the 
reason. 
 
The ROK-U.S. FTA is likely to be revised after the inauguration of 
the Obama administration (38.2% of the GNP respondents) 
 
¶4. What measures would you come up with if the U.S. demands a 
renegotiation or additional negotiation of the ROK-U.S. FTA? 
 
Concession in the automotive sector  26.7% 
(27.9% and 32% of the GNP and DP respondents respectively) 
Concession in other sectors 10.3% 
Rejecting the demand  44.6% 
(48.1% and 26% of the GNP and DP respondents respectively) 
Other    18.4% 
 
Note: It means that 37 percent of those polled expect that the 
ROK-U.S. FTA would be ratified both in the ROK National Assembly and 
the U.S. Congress after it is revised (38.2% and 44% of the GNP and 
DP respondents respectively) 
 
¶5. What would you suggest as complementary measures to the ROK-U.S. 
FTA? 
 
- Complementary measures are needed for the sectors with poor global 
competitiveness including the financial sector (43.4% of GNP 
respondents) 
- Agricultural measures are needed (38% and 30% of the GNP and DP 
respondents respectively) 
 
 
Stephens