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E.O. 12958: N/A 
TAGS: KPAO PGOV PREL MARR ECON KS US
SUBJECT: PRESS BULLETIN - February 5, 2009 
 
Opinions/Editorials 
 
 
¶1. Obama Should Change His Dangerous View of Economy (JoongAang 
Ilbo, February 5, 2009, Page 26) 
 
 
Features 
 
¶2. Department Stores to Sell U.S. Beef Next Month 
(Hankook Ilbo, February 5, 2009, Page 20) 
¶3. Obama Administration's First Move on North Korea was to Impose 
Sanctions 
(Chosun Ilbo, February 5, 2009, Page 3) 
 
 
Top Headlines 
 
 
Chosun Ilbo 
Changing Labor-Management Culture Amid Economic Crisis: 
Labor Unions Pledge to Refrain from Strikes, While Employers Promise 
Not to Lay Off Employees 
 
JoongAng Ilbo 
There Are Still 130,000 Korean War Dead Whose Remains Have Not Been 
Recovered. It is Urgent to Secure DNA Samples 
of Families of Those Fallen Solders to Return Them 
to Their Families 
 
Dong-a Ilbo 
ROKG Seeks 10 Trillion Won Supplementary Budget 
to Boost Domestic Economy 
 
Hankook Ilbo, Segye Ilbo 
ROKG Pledges More Support for Troubled Firms 
 
Hankyoreh Shinmun 
Prosecution Under Criticism for Trying to Protect Police in 
Investigation of "Yongsan Tragedy" 
Seoul Shinmun 
Obama Administration Imposes Sanctions on N. Korean Firms 
 
 
Domestic Developments 
 
¶1. USFK Commander Gen. Walter Sharp said yesterday that an ROK-U.S. 
Combined Air Force Command will be established in Osan, about 35 km 
south of Seoul, around 2012 after the ROK takes over wartime 
operational control of its troops from the U.S., in order to respond 
promptly to an emergency on the Korean Peninsula. (Chosun, Hankook, 
Segye) 
 
¶2. According to an industry source, ROK department stores will sell 
U.S. beef as early as next month. (Hankook, Segye) 
 
 
International News 
 
¶1. According to the U.S. Federal Register notice, the State 
Department on Feb. 2 imposed two-year trade sanctions against seven 
foreign firms, including three North Korean companies, for being 
engaged in the proliferation of missile technology and weapons of 
mass destruction (WMDs). This is the first official decision of the 
Barack Obama Administration on North Korea, and shows the new U.S. 
administration's policy of dealing sternly with the North's 
proliferation activities while valuing dialogue in handling the 
communist state. (All) 
 
¶2. The outgoing Chief U.S. Delegate to the Six-Party Talks, 
Assistant Secretary of State Christopher Hill, in a Feb. 3 farewell 
address at the Asia Society in New York, criticized North Korea as a 
"complete momentum killer" during the Six-Party Talks to resolve the 
North Korean nuclear issue. (Chosun, Hankook, all TVs) 
 
¶3. According to a senior (ROK) military official, North Korea might 
test-fire a long-range Taepodong-2 missile on Feb. 16, North Korean 
leader Kim Jong-il's birthday, at the earliest. (JoongAng) 
 
 
Media Analysis 
 
North Korea 
The ROK media gave prominent attention to the State Department's 
Feb. 2 imposition of two-year trade sanctions against three North 
Korean companies for being engaged in the proliferation of missile 
technology and weapons of mass destruction (WMDs).  Most of the ROK 
media noted that this is the first official decision of the Barack 
Obama Administration on North Korea.  In particular, conservative 
Chosun Ilbo commented in an inside-page report from Washington that 
this move shows the new administration's policy of dealing sternly 
with North Korea's proliferation activities while valuing dialogue 
in handling the communist state.  Chosun also quoted a senior 
diplomatic source in Washington as saying: "The Obama Administration 
wants to solve problems through negotiations with North Korea.  If 
the North doesn't cooperate, however, it could employ a firmer 
policy than the Bush administration."  Chosun headlined its story: 
"Obama Administration's First Move on North Korea was to Impose 
Sanctions" 
 
Regarding reports of a possible long-range missile test by North 
Korea, right-of-center JoongAng Ilbo quoted a senior (ROK) military 
official as saying yesterday: "It would be possible for North Korea 
to test-fire the long-range Taepodong-2 missile on Feb. 16, North 
Korean leader Kim Jong-il's birthday, if it hurries to set up the 
launch pad and to fill the missile with liquid fuel." 
 
"Buy America" Clause 
Right-of-center JoongAng Ilbo gave front-page play to President 
Obama's Feb. 3 interview with ABC News, in which he said: "I do not 
want provisions that are going to be a violation of WTO agreements 
or in other ways signal protectionism.  I think that it would be a 
mistake right now.  That is a potential source of trade wars that we 
can't afford at a time when trade is sinking all across the globe." 
JoongAng also editorialized: "It is fortunate that President Obama 
has put the brakes on the U.S. Congress' move to expand the 'Buy 
America" clause.  However, the provision has not been fully 
withdrawn.  Trade protectionism and extreme confrontation between 
the U.S and China would do no good, only leading to collective 
suicide.  The exchange rate issue or trade friction should be 
resolved through dialogue and negotiation within the framework of 
the World Trade Organization (WTO), instead of threats and 
retaliation.  It is very dangerous to take a look at the world 
economy from the perspective of U.S. workers.  The U.S should return 
to free trade and international coordination.  This is the right 
path for the U.S and the world as a whole." 
 
 
Opinions/Editorials 
 
Obama Should Change His Dangerous View of Economy 
(JoongAang Ilbo, February 5, 2009, Page 26) 
 
In an inauguration speech, U.S President Barack Obama reiterated his 
views on "national interests" and "the position of laborers of the 
U.S. manufacturing industry".  Apparently in line with this, the U.S 
government provided a bail-out package to the floundering Big Three 
companies.  This is also true of the 'Buy America' clause which 
mandates use of only U.S-made steel products in construction.  The 
world's fear of trade protectionism has reared its ugly head and 
become a reality.  The new U.S. government appears to intend to push 
for re-negotiation for the Free Trade Agreement (FTA) and overhaul 
the signed North American Free Trade Agreement (NAFTA).  This is a 
totally different stance from that of the former Bush Administration 
which underscored 'neoliberalism' and 'free trade.' 
 
The U.S. has placed stronger pressure on China.  In a confirmation 
hearing, U.S. Treasury Secretary Timothy Geithner said, "Currency 
manipulation by China remains one of the serious issues," 
pinpointing China as a currency manipulator.  Now, a bill slapping 
retaliatory tariffs on the currency manipulator has been submitted 
for Congressional review.  Chinese prime minister Wen Jiabao 
immediately struck back, saying "we will decide whether to 
additionally purchase U.S treasury securities after weighing 
national interests," hinting at a possible halt to the purchase. 
Excessive low valuation of Chinese yuan is a chronic disease of the 
world economy that needs to be remedied some time in the future. 
However, a tug-of-war between the U.S and China in the middle of the 
global economic crisis would deal a set back to the world economy. 
 
 
Yesterday, reassuringly, President Obama put brakes on the movement 
by the U.S Congress to expand the 'Buy America" clause.  However, 
the provision has not yet been fully withdrawn.  At present, trade 
protectionism and heated confrontation between the U.S. and China 
would do no good, because it would only lead to collective suicide. 
The exchange rate issue or trade friction should be resolved through 
dialogue and negotiation within the framework of the World Trade 
Organization (WTO), instead of using threats and retaliation.  It is 
very dangerous to view the world economy from the perspective of 
U.S. workers.  The U.S. should return to enforcing free trade and 
international coordination.  This is the right path for the U.S and 
the world as a whole. 
 
 
Features 
 
Department Stores to Sell U.S. Beef Next Month 
(Hankook Ilbo, February 5, 2009, Page 20) 
 
By Reporter Lee Sung-hee 
 
Department stores will start to sell U.S. beef as early as next 
March. 
 
According to the distribution industry on February 4, the "Big 
Three" department stores-Lotte, Hyundai, and Shinsegae-which have 
been weighing when to resume the sale of U.S. beef, will start to 
sell U.S. beef late next month at the earliest, or in April at the 
latest, on the judgment that amid an economic downturn, opposition 
to the sale of U.S. beef has been reduced considerably. 
 
Hyundai Department Store is taking the most aggressive stance. 
Hyundai is pushing for a plan to sell U.S. beef, especially prime 
grade beef, as early as late March, and it is reportedly already 
making preparations with its business partners.  Shinsegae also 
plans to resume U.S. beef sales as early as some time in March. 
With the Centum City branch set to open in Busan at the end of 
March, Shinsegae will reportedly start to sell U.S. beef at all its 
seven branches, except the Yongdungpo branch, at the same time, in 
time for the new branch opening.  Lotte will start to sell U.S. beef 
around April.  A Lotte official said, "Although we had planned to 
sell U.S. beef before the Lunar New Year holidays, we delayed it due 
to a shortage of goods for sale.  Since we are currently discussing 
the supply of U.S. beef with importers, we believe that it will be 
possible to sell U.S. beef in April." 
 
Department stores are expected to sell prime grade beef, the top of 
eight grades, and L.A. galbi (U.S. beef ribs).  An official of the 
beef import industry noted, "The import price of prime grade beef is 
18,000 won per kilogram, but if the merchandise cost and the margin 
of profit are added, its selling price will be estimated at 36,000 
won, twice as much as the import price. 
 
 
Obama Administration's First Move on North Korea was to Impose 
Sanctions 
(Chosun Ilbo, February 5, 2009, Page 3) 
 
By Washington Correspondent Lee Ha-won 
 
The U.S. bans three North Korean entities engaged in missile 
proliferation from trade with the U.S. for two years. 
 
Washington values negotiations but takes a hard line if the North 
does not cooperate. 
 
The new Barack Obama Administration is making clear in its initial 
days that, while actively pursuing dialogue with North Korea, it 
will not take a conciliatory approach towards the communist state. 
 
Sanctions against North Korean businesses 
 
With North Korea reportedly preparing for the launch of a 
Taepodong-2 missile, the U.S. Department of State imposed sanctions 
on three North Korean companies, saying that they have involved 
themselves in missile and technology proliferation related 
activities.  In the Federal Register, the State Department confirmed 
that three North Korean entities-Korea Mining and Development Corp., 
Mokong Trading Corp., and Sino-Ki-are banned from trade with the 
U.S. for two years.  This is not unusual, considering that the U.S. 
administrations have applied sanctions against North Korea every 
year under the Arms Export Control Act (AECA).  However, a 
diplomatic source in Washington D.C. noted that Sino-Ki was newly 
added this time. 
 
Since the U.S. and North Korea do not have diplomatic relations, 
there would be little possibility of North Korean companies trading 
with companies in the U.S. anyway, but as it is the Obama 
Administration's first sanction against North Korea, the U.S. 
government has made a symbolic gesture.  It clearly shows that 
although the North was removed from the U.S. list of state sponsors 
of terrorism last year, Washington still sees the North as a "rogue 
state."  Pyongyang, which has expected a "favor" from the Obama 
Administration, is likely to respond strongly to the sanction and 
consider it a "hostile step." 
 
This step corresponds to President Obama's policy, who says that he 
will deal with sternness to prevent proliferation of weapons of mass 
destruction.  President Obama said in a February 3 interview with 
CNN, "My most important job obviously is to keep the American people 
safe." 
 
Washington uses UN Security Council Resolution 1718 
 
The Obama Administration said that preparations to test-fire a 
missile violates UN Security Council Resolution 1718 and hinted at 
possible sanctions through the UN, if a missile is actually fired. 
State Department Deputy Spokesman Robert Wood stressed on February 
3, "A ballistic missile launch by North Korea would be unhelpful (to 
security in Northeast Asia), and frankly, provocative," adding, "UN 
Security Council Resolution 1718 basically prohibits North Korea 
from engaging in missile-related activities."  In the wake of the 
North's nuclear test in October 2006, the UN Security Council called 
on the North to suspend all activities involving its ballistic 
missile programs. 
 
The Obama Administration plans to resolve North Korean nuclear 
issues through the Six Party Talks and push for normalization with 
North Korean cooperation. 
 
However, the Obama Administration appears to be wary of the view 
that a "more active dialogue" is construed as a weakening of its 
North Korean policy.  According to the White House, President Obama, 
in a telephone conversation with President Lee Myung-bak, laid out 
as a policy goal, "verifiable scrapping of the North Korean nuclear 
weapons and nuclear programs."  If North Korea complies, it will 
lead to a reconciliatory mood between the U.S. and North Korea.  But 
if North Korea causes trouble, the U.S. is determined to act 
sternly. 
 
In fact, three key U.S. policy makers for the Korean Peninsula in 
the Obama Administration, Campbell, the nominee for Assistant 
Secretary of State for East Asian and Pacific Affairs, Gregson, the 
nominee for Assistant Secretary of Defense for East Asian and 
Pacific Affairs, and Bader, the Senior Director for Asian Affairs at 
the National Security Council, said critically that Christopher 
Hill, the chief U.S. delegate to the Six Party Talks, made too many 
concessions. 
 
A senior diplomatic source in Washington, D.C. said, "The Obama 
Administration wants to resolve problems through negotiations with 
North Korea.  But if North Korea does not cooperate, it could employ 
a harder-line policy than the Bush Administration." 
 
 
Stephens 
1