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TAGS: KPAO PGOV PREL MARR ECON KS US
SUBJECT: PRESS BULLETIN - January 16, 2009 
 
Opinions/Editorials 
 
¶1. FTA Floundering 
(JoongAng Ilbo, January 16, 2009, Page 26) 
 
Features 
 
¶2. Obama Ally Calls Korea-U.S. FTA "Unfinished Business" (Dong-a 
Ilbo, January 16, 2009, Page 3) 
¶3. U.S. Embassy Provides Online Information on Visa-free U.S. Travel 
 
(Kookmin Ilbo, January 16, 2009, Page 5) 
¶4. ROK's Insistence on KORUS FTA Ratification Could Lead to Conflict 
with U.S. 
(Hankyoreh Shinmun, January 16, 2009, Front Page) 
 
Top Headlines 
 
Chosun Ilbo, Seoul Shinmun, All TVs 
Universities Likely to be Allowed to Select Students 
Based on Admission Policies Other Than Students' College Scholastic 
Ability Test (CSAT) Scores 
or High School Performance Records 
 
JoongAng Ilbo 
Japan's Labor and Management Agree on "Job Sharing" among Workers to 
Overcome Economic Crisis; ROK Labor Unions, However, Bent on 
Protecting Their Vested Rights 
 
Dong-a Ilbo 
New Claims for Jobless Benefits Rise 84 Percent in December 
 
Hankook Ilbo 
University Presidents Seek to Abolish "Three Nos" Policy in 
Education (No High School Rankings, No Independent College 
Admissions and No Admissions for Donations), Creating a Stir 
 
Hankyoreh Shinmun 
U.S. Steps up Calls to Renegotiate the KORUS FTA, 
with ROKG Saying "Renegotiation is Impossible" 
 
Segye Ilbo 
Finance Minister Kang Man-soo Certain to be Replaced; Ruling GNP 
Chief Policymaker Lim Tae-hee Seen as Likely Successor 
 
 
Domestic Developments 
 
¶1. Deputy Blue House Spokeswoman Kim Eun-hye, in a Jan. 15 regular 
briefing, said that the ROK's position is that there will be no 
renegotiation of the KORUS FTA. This remark was made in response to 
Secretary of State-designate Hillary Clinton's written statement at 
her confirmation hearing concerning the KORUS FTA. (JoongAng, 
Hankyoreh) 
 
¶2. In a related development, Jay L. Eizenstat, a senior trade policy 
adviser to Obama's transition team, said in a recent interview with 
Dong-a Ilbo that consultations between the two countries on the 
KORUS FTA are expected to resume this summer. He went on to say that 
Congress and the White House will fine-tune the details of the KORUS 
FTA to come up with more efficient strategies. (Dong-a) 
 
¶3. Thomas Donohue, president of the U.S. Chamber of Commerce (USCC) 
in Washington, told reporters in Seoul that there will be no 
renegotiation of the KORUS FTA, even though there might be a need 
for "small discussions and adjustments" on provisions of the pact 
relating to the automobile trade. (Dong-a, Hankook, Segye, Seoul) 
 
¶4. The National Assembly adopted a resolution on Jan. 13 
congratulating President-elect Barack Obama's Jan. 20 inauguration 
as the 44th President of the U.S.  National Assembly Speaker Kim 
Hyong-o delivered the resolution to U.S. Ambassador to the ROK 
Kathleen Stephens January 15. (JoongAng, Voice of the People) 
 
 
International News 
 
¶1. Outgoing Secretary of State Condoleezza Rice, in a Jan. 14 
document distributed by the State Department, purportedly said that 
U.S. intelligence authorities believe that North Korea has 
weapons-grade highly enriched uranium (HEU). (Chosun) 
 
 
Media Analysis 
 
North Korea 
Conservative Chosun Ilbo carried a quote from outgoing Secretary of 
State Condoleezza Rice, who purportedly said in a Jan. 14 document 
distributed by the State Department: "the (U.S.) intelligence 
community now believes that there is, undisclosed, either imported 
or manufactured weapons-grade highly enriched uranium in North 
Korea." 
 
KORUS FTA 
Secretary of State-designate Hillary Clinton's remarks on the KORUS 
FTA during her confirmation hearing continued to draw media 
attention. 
 
Right-of-center JoongAng Ilbo and left-leaning Hankyoreh Shinmun 
quoted deputy Blue House Spokeswoman Kim Eun-hye as saying in a Jan. 
15 regular briefing: "Our position is that there will be no 
renegotiation of the KORUS FTA."  JoongAng, in particular, 
editorialized: "There is no change in our view that the KORUS FTA 
was the result of negotiations that succeeded in maintaining the 
proper balance between the national interests of the two countries. 
The problem lies with the U.S. auto industry itself, hampered by low 
fuel efficiency and uncompetitive prices and quality.  So why is 
America trying to shift the blame to the ROK?  America should 
realize why U.S.-made cars have fallen far behind their German and 
Japanese counterparts, even though they used to have a nearly 50 
percent market share in Korea's imported car market.  We are 
concerned that the KORUS FTA, which has been promoted as part of our 
efforts to strengthen the ROK-U.S. alliance, may hamper the very 
cause that the agreement was hoped to contribute to." 
 
Conservative Dong-a Ilbo, meanwhile, carried a recent phone 
interview with Jay L. Eizenstat, senior trade policy adviser to 
Obama's transition team, in which he said that consultations between 
the two countries on the KORUS FTA are expected to resume this 
summer.  He was further quoted as saying: "Congress believes more 
negotiations are required for provisions on auto and various 
non-tariff barriers, the principal axes of the KORUS FTA.  Congress 
and the White House will fine-tune the details of the KORUS FTA to 
come up with more efficient strategies. " 
 
Most of the ROK media also gave play to press remarks in Seoul by 
Thomas Donohue, president of the U.S. Chamber of Commerce (USCC) in 
Washington: "There will be no renegotiation of the KORUS FTA, even 
though there might be a need for "small discussions and adjustments" 
on provisions of the pact relating to the automobile trade." 
 
Gaza Conflict 
Most of the ROK media reported that Israel shelled the headquarters 
of the UN Relief and Works Agency in Gaza City yesterday, injuring 
three staff members.  UN Secretary General Ban Ki-moon, who arrived 
in Israel shortly before the attack as part of a trip to the region 
to push for a truce, was widely quoted as expressing "strong protest 
and outrage" to Israel over the shelling of the compound.  A senior 
Western diplomat was also quoted as saying: "Israel appears to be 
trying to make last-minute gains on the ground before a truce could 
be imposed to end its offense.  It is a classic Israeli strategy." 
 
Citing a BBC report, moderate Hankook Ilbo, meanwhile, reported that 
Hamas, driven into a corner, expressed its intention to accept a 
cease-fire plan brokered by Egypt. 
 
 
Opinions/Editorials 
 
FTA Floundering 
(JoongAng Ilbo, January 16, 2009, Page 26) 
 
Hillary Rodham Clinton, the American Secretary of State-designate, 
said of the Korea-U.S. FTA at her confirmation hearing: "If the 
South Koreans are willing to re-engage negotiations on these vital 
provisions (automobile and non-tariff barrier rules) of the 
agreement, we will work with them to get to resolution."  Charles 
Rangel, Chairman of the House Ways and Means Committee, said that 
additional measures to revise the FTA would be on the agenda for 
¶2009.  The Korea-U.S. FTA has entered a new phase.  In fact, we 
understand that the incoming Obama Administration is poised to call 
for a renegotiation of the agreement. 
 
The Korean government maintains its official stance of having no 
plans to renegotiate the FTA.  It is also still sticking to its line 
that the agreement was the result of negotiations that succeeded in 
maintaining the proper balance between the national interests of the 
two nations.  For example, American automobiles are a prime thorny 
issue.  But the problem lies with the U.S. auto industry itself, 
hampered by low fuel efficiency and uncompetitive prices and 
quality.  America's Big Three automakers are staggering under the 
huge burden of paying medical benefits for retired union workers. 
So why is America trying to shift the blame to Korea?  America 
should realize why U.S.-made cars have fallen far behind their 
German and Japanese counterparts, even though they used to have a 
nearly 50 percent market share in Korea's imported car market. 
 
We had real concerns about such calls for renegotiation of the 
agreement.  We continued to insist that the National Assembly should 
complete ratification of the agreement early to avoid exactly this 
miserable situation.  But the National Assembly neglected its duty 
and let the chance slip by.  Now we should calmly approach the 
agreement again.  The government and the ruling party should explore 
the best measure to protect national interests.  Legislative 
ratification in both nations should be considered to avoid repeating 
the same mistake.  It is unjustifiable that U.S. Democrats are using 
the FTA for political gain.  The government, and the ruling and 
opposition parties, should discuss whether we should renegotiate the 
agreement with the U.S.  The Korea-U.S. FTA, which has been promoted 
as part of our efforts to strengthen the Korea-U.S. alliance, may 
hamper the very cause that the agreement was hoped to contribute to. 
 
 
* This is a translation provided by the newspaper, and it is 
identical to the Korean version. 
 
 
Features 
 
Obama Ally Calls Korea-U.S. FTA "Unfinished Business" 
(Dong-a Ilbo, January 16, 2009, Page 3) 
 
By Reporter Kim Jung-ahn 
 
A former Customs Affairs Director for the U.S. Trade Representative 
who is likely to serve in the Obama Administration calls the 
Korea-U.S. free trade agreement "unfinished business." 
 
Jay Eizenstat, now an attorney at Miller & Chevalier, served as 
senior trade policy adviser to Obama's transition team. 
 
"The consultations on the Free Trade Agreement between the two 
countries are expected to resume this summer.  Congress and the 
White House will fine-tune the details of the agreement to come up 
with more efficient strategies," he said. 
 
Eizenstat also said the U.S. Trade Representative and the Commerce 
Department, which are in charge of trade policy, will be more 
aggressive than under the Bush Administration. 
 
The following is excerpts of a Dong-a Ilbo question and answer 
session with him. 
 
¶Q. Do you believe the free trade deal with Korea will be ratified 
this year? 
 
"I think FTAs with Panama and Columbia will be ratified by Congress 
in the second half of this year.  As for the Korea-U.S. FTA, 
however, the chances of ratification are remote because of tricky 
issues including the auto industry." 
 
¶Q. Do you mean a renegotiation? 
 
"It's not easy to specify whether it would be renegotiation or 
amendments within the current framework, but the next administration 
believes an additional process is necessary." 
 
¶Q. If Korea's National Assembly ratifies the agreement ahead of 
Congress, do you think it will make congressional support for the 
deal easier? 
 
"I don't expect much difference.  Rather, it will invite a political 
debacle if the Korean government tries to take political advantage 
of it." 
 
Eizenstat cited U.S. beef and car imports and non-tariff measures as 
the most contentious issues surrounding the agreement. 
 
¶Q. Is Congress dissatisfied with all three issues? 
 
"Most politicians in and out of Washington seem to believe the beef 
issue has more or less been resolved.  But Congress believes more 
negotiations are required for provisions for auto and various 
non-tariff barriers, the principal axes of the Korea-U.S. FTA." 
 
¶Q. Can you be more specific? 
 
"Discrimination by Korean regulatory policy has put American cars at 
a bigger disadvantage than those from other nations.  The prevalent 
atmosphere in Washington is that the consensus on auto-related 
measures is unbalanced." 
 
¶Q. Some experts say Washington is trying to link the U.S. auto 
industry's lack of competitiveness with foreign trade and commerce. 
 
 
"Of course, (the U.S. auto industry) has several problems in its own 
system, industrial structure and others.  It will go through 
streamlining and restructuring procedures.  The argument on 
discrimination against American cars is nothing new." 
 
Eizenstat cited Korea's car tax based on engine size as an example 
of Korea's auto discrimination. 
 
Though he did not directly mention this, U.S. trade hard-liners cite 
the 700,000 Korean vehicles sold in the U.S. market each year, while 
the corresponding number for American automakers in Korea is just 
5,000. 
 
¶Q. Compared to the Bush administration, what characteristics will 
the Obama administration's trade policy have? 
 
"U.S President-elect Barack Obama will not want to be viewed as 
protectionist.  Consistent support will go to the World Trade 
Organization and the Doha Development Agenda but focus will be 
placed on enforcement and litigation of regulations reflecting the 
demands of U.S. industries (within the World Trade Organization 
framework).  Some complaints can be lodged against regulation 
clauses on labor and the environment in FTAs with Korea and 
Columbia." 
 
"The Obama Administration will focus as much on the process as on 
the negotiation results.  Instead of highlighting the achievement of 
free trade (carrots), it will make efforts to secure equal footing 
for U.S. industries competing on the global stage." 
 
* This is a translation provided by the newspaper, and it is 
identical to the Korean version. 
 
 
U.S. Embassy Provides Online Information on Visa-free U.S. Travel 
(Kookmin Ilbo, January 16, 2009, Page 5) 
 
By Reporter Ahn Yo-keun 
 
Internet Caf of the U.S Embassy in Korea 
(http://cafe.daum.net/usembassy). 
 
"I plan to visit one of my friends in Vancouver, Canada, and take a 
trip to Seattle, the United States.  Can I travel to the U.S. 
without a visa under the Visa Waiver Program (VWP)? (Written by 
Kahve) 
 
"Yes.  If you qualify for the VWP, you can travel overland from 
Canada to the U.S."  (Answered by Consul General, the U.S. Embassy 
in Korea) 
 
The U.S. Embassy is offering online counseling on the VWP that was 
launched last November at its "Caf USA." 
(http://cafe.daum.net/usembassy). 
 
Travelers who visit the U.S. for up to 90 days for sightseeing or 
business, with a valid electronic passport, are eligible for a visa 
waiver under the VWP. They should also obtain a travel authorization 
via the Electronic System for Travel Authorization (ESTA) prior to 
their travel. 
 
In an effort to give help to travelers, the U.S. Embassy in Seoul is 
offering online information through the 'Visa/Consul Board.'  Deputy 
Consul General Mark Strege had a Web chat with Netizens on a 
real-time basis.  As the internet caf is not widely known yet, 
there are not many counseling cases. 
 
 
The question most frequently asked by Internet users is what is 
going to happen to their already-issued visas under the VWP.  Of 
course, the visas that they already have can be used as much as they 
want until the visas expire.  An Embassy official said on January 
15, "If you post a question in Korean on the Web site, we translate 
it into English, refer it to a related section, translate the answer 
into Korean again, and post it on the Web site.  Therefore, it takes 
some time to give an answer, but we are not missing any questions." 
 
 
ROK's Insistence on KORUS FTA Ratification Could Lead to Conflict 
with U.S. 
(Hankyoreh Shinmun, January 16, 2009, Front Page) 
 
By Reporters Hwang Joon-beom and Lee Yong-in and Washington 
Correspondent Ryu Je-hoon 
 
Gov't presses ahead with ratification plans, despite Hillary 
Clinton's comments about renegotiation 
 
Renegotiation of the ROK-U.S. Free Trade Agreement (FTA) is rising 
as a major issue between the two nations. 
 
In response to U.S. Secretary of State-designate Hillary Rodham 
Clinton's statements raising the issue of renegotiation (of the 
KORUS FTA), the ROKG emphasized that there is to be "no 
renegotiation." ROKG officials also indicated that the agreement's 
ratification would be resolved in the National Assembly in 
February. 
 
Blue House Deputy Spokeswoman Kim Eun-hye said in a Thursday 
briefing, "I don't know that it would be appropriate for us to talk 
about a statement made before the inauguration of President-elect 
Barack Obama takes place in the U.S., but the question of whether 
the U.S. will demand renegotiation or not is something about which 
we will have to wait and see."  Kim added, "Our position is that 
there are no renegotiations."  When asked whether the National 
Assembly ratification would take place in February according to 
current plans, Kim confirmed that it would, saying, "Our position on 
the National Assembly ratification remains unchanged."  A 
high-ranking official with the trade negotiations section of the 
Ministry of Foreign Affairs and Trade said, "The U.S. Congress's 
confirmation hearing is not a place for discussing policy in depth, 
so we cannot really view this (statement) as an official position." 
The official added, "There are no changes to our position that there 
is no renegotiation." 
 
However, on the heels of Senator Clinton's expression of her intent 
to demand renegotiation of the FTA during her Senate confirmation 
hearing Tuesday, Representative Charles Rangel, Chairman of the 
House Committee on Ways and Means, the main permanent committee 
discussing the ROK-U.S. FTA, said in a Wednesday discussion of this 
year's legislative priorities with other representatives on the 
committee that "President-elect Obama wants to see the ratification 
of three free trade agreements that are currently pending, with the 
ROK, Colombia and Panama, but the two agreements with the ROK and 
Colombia are in need of additional measures."  In reporting the 
"Trade Issues in the 111th Congress," (published and distributed by 
the Senate Finance Committee, Chairman Max Baucus) the U.S. Senate 
also pointed to automobiles, beef, rice and the Kaeseong Industrial 
Complex as potential bones of contention in the KORUS FTA.  (Note: 
The beef issue has been discussed separately from the trade deal, 
the rice issue has been ruled out of the negotiation, and the 
Kaeseong Industrial Complex issue was settled temporarily.) 
 
In light of this political atmosphere in the U.S., some are 
concerned about possible trade friction between the ROK and the U.S. 
if the ROKG pushes through ratification of the agreement in February 
with a "no renegotiations" stance.  Indeed, Representative Sander 
Levin, Chairman of the Trade Subcommittee of the House Committee on 
Ways and Means, warned in a press conference Wednesday that the ROK 
National Assembly's attempt to push through ratification of the 
agreement in order to apply pressure to the U.S. was a "mistake." 
He added, "We want a two-way street with the ROK, not a one-way 
street.  Until there's a two-way street, it's unacceptable." 
 
Lee Hae-young, a professor at Hanshin University, said, "Rather than 
publicly saying, 'The ROK should ratify the FTA before the U.S. 
does' or 'There is no renegotiation,' the ROK would do well to wait 
until the U.S. determines its position," adding, "Now is the time to 
gauge public opinion and overhaul trade-related rules and systems 
for the sake of our national interests and consider preparing new a 
trade order and measures for the time after the financial crisis." 
 
* We have compared the English version on the website with the 
Korean version and made some changes to make them identical. 
 
 
Stephens 
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