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E.O. 12958: N/A 
TAGS: KPAO PGOV PREL MARR ECON KS US
SUBJECT: PRESS BULLETIN - February 3, 2009 
 
Opinions/Editorials 
 
¶1. No to U.S Return to Protectionism 
(Dong-a Ilbo, February 3, 2009, Page 27) 
¶2. The World Must Not Repeat Protectionist Mistakes 
(Chosun Ilbo, February 3, 2009, Page 31) 
¶3. Obama Administration's Protectionist Barriers Are Unsettling 
(Seoul Shinmun, February 3, 2009, Page 31) 
 
 
Top Headlines 
 
Chosun Ilbo 
No Strike Occurred in January for First Time in 13 Years, Thanks to 
"Compromise" between Labor and Management 
amid Economic Downturn 
 
JoongAng Ilbo 
Private Education Market Shifting with ROKG Putting More Emphasis on 
English Education and College Scholastic Ability Test (CSAT); Demand 
Going Up for Private English Institutions and Premium-level 
Institutions that Prepare Students for CSAT 
 
Dong-a Ilbo 
ROKG Measures to Overcome Economic Crisis Fail 
to Live up to Public Expectations 
 
Hankook Ilbo, Segye Ilbo, Seoul Shinmun, All TVs 
Exports Fall Record 32.8 Percent in January 
 
Hankyoreh Shinmun 
Korea University Resists Disclosing Its Admission Standards, with 
Suspicions Mounting that It Might Have Committed Irregularities in 
Selecting Students for 2009 Academic Year 
 
 
Domestic Developments 
 
¶1. A group of anti-North Korea activists in the ROK said yesterday 
that they will send anti-Pyongyang propaganda leaflets and North 
Korean banknotes to the communist state around North Korean leader 
Kim Jong-il's birthday on Feb. 16. The Unification Ministry, 
however, warned that it might conduct an investigation into the 
plan, especially how the activists got hold of North Korean 
currency, because it is illegal to bring in North Korean currency 
without the permission of the Ministry. (All) 
 
 
International News 
 
¶1. A spokesman for North Korea's General Chief of Staff, in a Feb. 2 
interview with the North's state-run Korean Central News Agency, 
argued: "The only way to denuclearize the Korean Peninsula is for 
all the parties with nuclear weapons to start reducing their nuclear 
arsenals simultaneously," a remark seen as intended to clarify North 
Korea's position that the U.S. and North Korea should be at the 
center of nuclear disarmament talks. (JoongAng, Dong-a, Hankyoreh, 
Hankook, Segye, Seoul, All TVs) 
 
 
Media Analysis 
 
North Korea 
Most of the ROK media gave play to a report quoting a spokesman for 
North Korea's General Chief of Staff as asserting during a Feb. 2 
interview with the North's state-run Korean Central News Agency: 
"The only way to denuclearize the Korean Peninsula is for all the 
parties with nuclear weapons to start reducing their nuclear 
arsenals simultaneously."  Most of the media viewed this as intended 
to clarify Pyongyang's position that the U.S. and North Korea should 
be at the center of nuclear disarmament talks. 
 
U.S. Stimulus Package 
Most of the ROK media paid keen attention to a "Buy American" 
provision in the $819 billion stimulus legislation recently approved 
by the U.S. House of Representatives, which calls for builders, who 
have received government aid, to use only U.S.-made steel products. 
The ROK media also noted the U.S. Senate's push to expand the "Buy 
American" provision to include other manufactured goods. 
Conservative Chosun Ilbo editorialized: "History has taught us that 
economic crises drive countries to cave in to the temptations of 
protectionism and nationalism, which make it more difficult to 
overcome difficulties.  The Great Depression of the 1930s is a key 
example.  In 1930, the U.S. Senate ratified the Smoot-Hawley Tariff 
Act, which raised tariffs on imports by an average of 20 percent, in 
order to protect American businesses and jobs.  The result was the 
opposite.  America's major trading partners, including Britain, 
France, Germany, Italy and Canada, implemented retaliatory tariffs, 
causing global trade to decline and leading the entire world into 
economic depression.  Countries around the world, especially the 
U.S., must not repeat mistakes made 80 years ago, when protectionist 
measures drove the global economy into the path of destruction."  A 
commentary in conservative Dong-a Ilbo argued: "If the U.S. returns 
to protectionism, it would likely lead the EU and Japan to move in 
the same direction, triggering a domino phenomenon of protectionism 
which would be disastrous enough to plunge the current financial 
crisis into a global depression.  Furthermore, the global 
multilateral trade system represented by the General Agreement on 
Tariffs and Trade (GATT) and the World Trade Organization (WTO) 
might collapse, ... rupturing the link to free trade and investment 
that has propped up the world economy.  This would surely not be 
beneficial to the world economy as well as the U.S.  It is high time 
for more active U.S. leadership."  Moderate Seoul Shinmun commented 
in an editorial: "The U.S. has cried for free trade and 
globalization.  And it is now building high protectionist barriers 
for the sole purpose of saving  itself from the global financial 
crisis which originated from it.  This is not the right attitude for 
the world's superpower that holds sway over the global economy.  The 
Obama Administration should resist the temptation of trade 
protectionism and find a way for the entire world to overcome the 
crisis together and coexist harmoniously." 
 
 
Opinions/Editorials 
 
No to U.S Return to Protectionism 
(Dong-a Ilbo, February 3, 2009, Page 27) 
 
by Korea University Prof. Park Sung-hoon 
 
Dong-a Ilbo reported that the U.S. House of Representatives passed 
economic stimulus bills worth 819 billion dollars with a "Buy 
American" clause added in the appendix which calls for use of only 
U.S.-made steel products in building high-speed roads, bridges, 
schools and hospitals.  This move by the U.S. means that a country 
which ought not to do so returns to protectionism at the bleakest 
time and under the bleakest conditions.  Such a move is expected to 
have some negative ramifications. 
 
Is the U.S. aiming to topple a multilateral trade system? 
 
With a global financial crisis looming since last September, many 
economists and policy-makers sent a strong warning against a return 
to protectionism.  Notwithstanding, regrettably, the world's 
greatest economic power, the U.S., has embarked on a protectionist 
drive. 
 
One of main culprits of the Great Depression that plagued the world 
economy in the 1930s was a 'beg my neighbor' policy; the U.S. sought 
to expand exports and curtail imports through depreciation and 
protectionism.  The U.S.-triggered economic recession turned into 
the Great Depression through several channels, even spawning an idea 
that the Depression engendered the Nazi regime in Germany.  Wary of 
this concern, President Lee Myung-bak emphasized in the Asia-Pacific 
Economic Cooperation (APEC) summit last year that the U.S. should 
never go return to policies of protectionism. 
 
Given the U.S. standing and role in the world economy, it is high 
time that the U.S. take economical and political leadership to 
overcome a global financial crisis.  A stronger protectionist stance 
by the U.S. would lead the European Union (EU) and Japan to move in 
the same direction. There is concern that this will spark a domino 
phenomenon of protectionism.  Such a domino effect would be 
disastrous enough to plunge the current financial crisis into a 
global depression.  This would surely not be beneficial to the world 
economy as well as the U.S.  Thus, more active U.S. leadership is 
called for. 
 
If U.S. protectionism of the steel industry is condoned, the domino 
effect would spread out of control to various industrial arenas such 
as the automobile and information technology (IT) industries.  If 
this happens, the world economy would no longer be able to maintain 
its sought-after free trade and investment since late 1940s when the 
General Agreement on Tariffs and Trade (GATT) governing tariffs and 
trade took effect, but instead witness a far-reaching spread of 
protectionism.  This means that the multilateral trade system 
represented by the GATT and the World Trade Organization (WTO) may 
collapse.  The Doha Development Agenda (DDA) agreement, which has 
barely survived over recent years, would lose its ground, rupturing 
the link to free trade and investment that has propped up the world 
economy. 
 
Seoul should prepare a lawsuit through cooperation with WTO 
members. 
 
Luckily, since other nations do not think favorably about the U.S.'s 
"Buy American" clause, it is somewhat doubtful if the policy may be 
put into action.  Particularly, the European Confederation of Iron 
and Steel Industries has stepped forward to demand that the European 
Commission should file a lawsuit with the WTO against the U.S. 
policy.  Major trading countries, such as Canada and Japan, also 
issued statements warning of the U.S.'s abrupt trade protectionism. 
 
The ROKG should respond to the U.S. move thoroughly by forging close 
cooperation with major WTO members, such as the EU, Canada, and 
Japan.  If necessary, we should also leave open the possibility of 
bringing this case to the WTO and make full preparations, including 
data accumulation. 
 
 
The World Must Not Repeat Protectionist Mistakes 
(Chosun Ilbo, February 3, 2009, Page 31) 
 
The U.S. House of Representatives has recently approved economic 
stimulus bills worth US$819 billion with a "Buy American" provision 
added in the appendix, saying that builders who have received 
government aid must use only U.S.-made steel products.  Democrats 
who led the move said it was wrong for foreign businesses to receive 
public funding from American taxpayers. 
 
The European Union and Canada reacted against the decision, saying 
it is a protectionist measure that goes against World Trade 
Organization regulations.  But the U.S. Senate is pursuing an 
expansion of the "Buy American" provision to include other 
manufactured goods.  The principles of free trade are being given 
lower priority, as U.S. politicians face mounting pressure to 
protect American industries, businesses and jobs. 
 
At the G20 summit in Washington D.C. last November, the leaders of 
member countries adopted a joint declaration vowing not to create 
protectionist trade measures over the next 12 months.  Leaders who 
attended the recent World Economic Forum in Davos, Switzerland 
agreed that protectionist policies could ruin everyone. 
 
But contrary to such declarations and promises, each country is 
racing to devise measures to protect its own citizens and 
businesses.  Russia, India, Vietnam, the Ukraine and other countries 
have raised tariffs on major imports, while Indonesia, Brazil, 
Argentina and other countries have raised non-tariff barriers, 
including a new system of authorizing imports.  The U.S. government 
has stepped up to aid Detroit's Big Three automakers, while 
Europeans countries are coming up with financial support measures 
for their automobile and aircraft industries. 
 
History has taught us that economic crises drive countries to cave 
in to the temptations of protectionism and nationalism, which make 
it more difficult to overcome difficulties. The Great Depression of 
the 1930s is a key example.  In 1930, the U.S. Senate ratified the 
Smoot-Hawley Tariff Act, which raised tariffs on imports by an 
average of 20 percent.  The measure was designed to protect American 
businesses and jobs. 
 
The result was the opposite. America's major trading partners, 
including Britain, France, Germany, Italy and Canada, implemented 
retaliatory tariffs, causing global trade to decline and leading the 
entire world into economic depression.  Global trade, which amounted 
to $4.9 billion in January of 1930, shrank to $2.1 billion two years 
later.  The U.S. unemployment rate surged from 9 percent in 1930 to 
16 percent in 1931 and 25 percent in 1932.  Countries around the 
world, especially the United States, must not repeat mistakes made 
80 years ago, when protectionist measures drove the global economy 
into the path of destruction. 
 
* This is a translation provided by the newspaper, and it is 
identical to the Korean version. 
 
 
Obama Administration's Protectionist Barriers 
Are Unsettling 
(Seoul Shinmun, February 3, 2009, Page 31) 
 
Amid the global economic downturn, trade protectionism is getting 
severe.  As (many countries) are taking a string of protectionist 
measures, such as the erection of tariff barriers or the 
strengthening of anti-dumping investigations, on the ground of 
protecting their industries, this would likely cause trade frictions 
and diplomatic conflicts.  The nation that sparked this 
protectionism is none other than the U.S., a nation which has 
fancied itself an advocate of free trade. 
 
We regard this protectionist move as an irresponsible action which 
shakes an international economic order to its roots.  Furthermore, 
the U.S. is the epicenter of the global financial crisis.  The U.S., 
which has cried for free trade and globalization, is now building 
high protectionist barriers for the sole purpose of saving itself 
from the crisis.  This is not the right attitude for the world's 
superpower that holds sway over the global economy. 
 
On the surface, many nations are advocating free trade and 
criticizing the U.S., but internally, they are opting for 
protectionism.  If trade protectionism spreads, international trade 
will decline, which will, in turn, accelerate the global economic 
downturn.  In other words, a hasty choice of trade protectionism 
will be only a shortcut to co-destruction.  We hope that the Obama 
Administration will resist the temptation of trade protectionism, 
which could lead the world economy into collapse, and find a way for 
the entire world to overcome the crisis together and coexist 
harmoniously. 
 
 
Stephens 
1