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UNCLAS SECTION 01 OF 06 SEOUL 000386 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; March 12, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, All TVs 
First Public Appearance after 19 Years of Seclusion... 
Former North Korean Spy Reaffirms 
Her Bombing of KAL Plane in 1987 
 
JoongAng Ilbo 
Are "March Crisis" Rumors on Their Way Out? 
ROK's Currency Surges to 1,471 Won vs. Dollar; 
Stocks Rise 3.23 Percent 
 
Dong-a Ilbo 
Ruling GNP Seeks to Exempt Young Koreans Working 
at Overseas Construction Sites from Military Service 
 
Hankook Ilbo 
Six Months after Lehman Brothers' Bankruptcy, Wall Street Gripped by 
Tension and Impatience; Only Consolation is 
That There are Discussions on When the Stock Market 
will Bottom Out 
 
Hankyoreh Shinmun 
Education Ministry Sides with Korea Council for University 
Education's Move to Incapacitate "Three Nos" Policy, which Bans 
Universities from Administering Own Entrance Exams, Grading High 
Schools for Admission and 
Accepting Students in Exchange for Donations 
 
Segye Ilbo 
Hongik University, the ROK's Top Art School, 
to Scrap All Practical Entrance Tests Beginning in 2013 
 
Seoul Shinmun 
U.S. National Intelligence Director: "N. Korea Plans 
to Launch Space- Launch Vehicle" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
"KORUS FTA: Korea's 'One-sided Love:'" Referring to USTR-nominee Ron 
Kirk's recent remarks that the KORUS FTA is not acceptable in its 
current form, Chosun Ilbo carried a front-page report saying that 
the Blue House, the ROKG and the ruling party are downplaying the 
remarks by arguing that they do not represent the official position 
of the USG.  U.S. congressional officials have said since last 
April, however, when the U.S. Congress refused to promptly approve 
the U.S.-Columbia FTA, that the KORUS FTA is a non-starter. 
 
Trade Minister Kim Jong-hoon was quoted as telling a radio program 
yesterday: "Our stance has not changed. There will be no 
renegotiations or additional negotiations on the KORUS FTA." 
(Hankyoreh, Segye, Seoul, all TVs) 
 
The launching ceremony and orientation for the ROK-U.S. WEST (Work, 
English Study and Travel) program was held at the Foreign Ministry 
yesterday. U.S. Ambassador to the ROK Kathleen Stephens was quoted 
as saying (to participating students): "Get out of your comfort 
zone," adding: "Have fun!  Remember, this is about something that 
goes beyond the classroom and the workplace into an experience that 
you will take with you for the rest of your life." (Dong-a, Seoul) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
U.S. National Intelligence Director Dennis Blair said in a March 10 
Senate Armed Services Committee hearing that North Korea is planning 
"a space launch," contradicting the ROK's position that the North is 
preparing a long-range missile test. He is the first U.S. official 
to comment specifically on the nature of the launch Pyongyang is 
 
SEOUL 00000386  002 OF 006 
 
 
planning. (All) 
 
An ROK expert was quoted as commenting: "Given that the Obama 
Administration has yet to decide on its North Korea policy, Mr. 
Blair might have made the remarks in order to prevent the situation 
from deteriorating further." (JoongAng) 
 
North Korea's Foreign Ministry said yesterday that the new U.S. 
Administration's string of words and deeds fall little short of 
infringing on the sovereignty of North Korea. This is the North's 
first public criticism of the U.S. since the launch of the Obama 
Administration. (Chosun, Dong-a, Seoul) 
 
Kim Hyun-hee, a former North Korean spy involved in the 1987 bombing 
of an ROK civilian jetliner, met yesterday with the brother and son 
of a Japanese woman allegedly kidnapped by North Korea. In a news 
conference after the meeting, she reaffirmed that the bombing of 
Korean Air Flight 858 was a terrorist act by North Korea and that 
she "is not a fake figure," dismissing a persistent conspiracy 
theory that the incident might have been planned by Seoul's then 
military-backed government. (All) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-North Korea 
------------ 
 
The ROK media gave prominent play to U.S. National Intelligence 
Director Dennis Blair's remarks during a March 10 Senate Armed 
Services Committee hearing, remarks that purportedly contradict the 
ROK's position that North Korea is preparing a long-range missile 
test.  The top U.S. intelligence official was widely quoted as 
saying: "I tend to believe that the North Koreans announced that 
they are going to do a space launch and I believe that that's what 
they intend."  The ROK media noted that he is the first U.S. 
official to comment specifically on the nature of the launch 
Pyongyang is planning.  JoongAng Ilbo quoted an ROK expert as 
analyzing: "Given that the Obama Administration has yet to decide on 
its North Korea policy, Mr. Blair might have made the remarks in 
order to prevent the situation from deteriorating further." 
JoongAng also noted the warning Director of the Defense Intelligence 
Agency Lieutenant General Michael Maples made at the same hearing -- 
Pyongyang might conduct missile tests or nuclear tests if the 
Six-Party Talks framework collapses.  Seoul Shinmun editorialized: 
"Blair's remarks are in stark contrast to comments from senior 
diplomats from both countries.  Special Representative for North 
Korea Policy Stephen Bosworth agreed during talks earlier this week 
with Foreign Minister Yu Myung-hwan that whether what North Korea 
plans to launch is a satellite or a long-range missile, it is still 
a violation of U.N. Resolution 1718.  Furthermore, Blair's remarks 
can be interpreted to mean that if the North launches a satellite, 
the U.S. may not intercept it.  We are concerned that North Korea 
might be misguided to think that it can go ahead with a launch. " 
 
Chosun Ilbo and Dong-a Ilbo gave attention to yesterday's statement 
by North Korea's Foreign Ministry expressing dissatisfaction with 
the Obama Administration.  A North Korean Foreign Ministry spokesman 
was quoted as saying: "The new U.S. administration is letting loose 
a whole string of words and deeds little short of infringing on the 
sovereignty of North Korea.  North Korea, exposed to the potential 
threat of the U.S. and its allied forces, will take every necessary 
measure to protect its sovereignty."   The newspapers noted that 
this statement is the North's first on the U.S. since the launch of 
the Obama Administration and that it appears to be related to 
Secretary of State Hillary Clinton's remarks during her Asia trip 
last month on insecurity surrounding the succession to North Korean 
leader Kim Jong-il. 
 
Yesterday's meeting between Kim Hyun-hee, a former North Korean spy 
involved in the 1987 bombing of an ROK civilian jetliner, and the 
brother and son of a Japanese woman allegedly kidnapped by North 
Korea received wide play.  The former North Korean spy was widely 
 
SEOUL 00000386  003 OF 006 
 
 
quoted as reaffirming in a news conference that the bombing of 
Korean Air Flight 858 was a terrorist act by North Korea and that 
she "is not a fake figure," dismissing a persistent conspiracy 
theory that the incident might have been planned by Seoul's then 
military-backed government.   JoongAng Ilbo observed that 
yesterday's occasion was arranged by the governments of the ROK and 
Japan and that the encounter could help the Japanese government 
apply more pressure on Pyongyang to release more information on the 
abductees.  Dong-a Ilbo commented that this event shows the Lee 
Myung-bak Administration's resolve not to cater to North Korea when 
it comes to humanitarian issues. 
 
-KORUS FTA 
---------- 
 
Carrying the headline, "KORUS FTA: Korea's 'One-sided Love,'" Chosun 
Ilbo ran a front-page report regarding USTR-nominee Ron Kirk's 
recent remarks that the KORUS FTA is not acceptable in its current 
form.  Chosun observed that the Blue House, the ROKG and the ruling 
party are downplaying the remarks by arguing that they do not 
represent the official position of the USG, but U.S. congressional 
officials have said since last April, when the U.S. Congress refused 
to promptly approve the U.S.-Columbia FTA, that the KORUS FTA is a 
non-starter.   Chosun went on to say that this self-consolation by 
the ROK will not change the position of the Obama Administration 
that has been cold toward the KORUS FTA. 
 
Most of the ROK media carried a quote from Trade Minister Kim 
Jong-hoon, who told a radio program yesterday: "Our stance has not 
changed. There will be no renegotiations or additional negotiations 
on the KORUS FTA." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
U.S. REMARKS ON 'NORTH KOREAN MISSILE' ARE CONFUSING 
(Seoul Shinmun, March 12, 2009, Page 31) 
 
U.S. National Intelligence Director Blair said in a March 10 Senate 
Armed Services Committee hearing that North Korea is planning a 
space launch.  He is the first U.S. official to comment on the 
nature of the launch Pyongyang was planning.  Confusingly, this 
remark is inconsistent with earlier U.S warnings that North Korea 
should not launch a rocket whether it is an artificial satellite or 
a long-range missile. 
 
Special Representative for North Korea Policy Stephen Bosworth, 
during talks with Minister of Foreign Affairs and Trade Yu 
Myung-hwan earlier this week, shared the view that whether the North 
launches a long-range missile or an artificial satellite, that 
launch would violate U.N. (Security Council) Resolution 1718. 
Minister Yu also reaffirmed yesterday that any rocket launch by 
North Korea would breach the U.N.(S.C.) Resolution.  Defense 
Minister Lee Sang-hee said in the National Assembly that even though 
North Korea insists that it is planning to launch a satellite, the 
ROKG considers it is preparing to launch a missile.  Director 
Blair's remark is in stark contrast to comments from both countries' 
senior diplomatic officials. 
 
The U.S. announced that it would intercept any rocket flying from 
North Korea and North Korea vowed to retaliate immediately.  It is 
hard to identify whether it is a missile or a space launch vehicle 
at this time.  However, Blair's remark may be interpreted to mean 
that if the North launches a satellite, the U.S. may not seek to 
shoot it down.  The ROK is concerned that North Korea may be 
misguided to think that it can go ahead with a launch. 
 
U.S. officials should make consistent remarks which will not lead to 
any confusion.  If U.S. authorities say different things to 
different people and officials from both countries reveal 
discrepancies in their positions, North Korea will try to take 
advantage of this.  As tensions rise across the Korean Peninsula, 
the ROK and the U.S should strengthen further their cooperation. 
 
SEOUL 00000386  004 OF 006 
 
 
 
 
FEATURES 
-------- 
 
U.S. NATIONAL INTELLIGENCE DIRECTOR: "N. KOREA PLANS TO LAUNCH SPACE 
LAUNCH VEHICLE" 
(JoongAng Ilbo, March 12, 2009, Page 3) 
 
By Washington correspondent Kim Jung-uk and reporter Chae 
Byung-geon 
 
U.S. National Intelligence Director Dennis Blair said in a March 10 
Senate Armed Services Committee hearing that North Korea is planning 
a space launch.  His remark came when all are turning their 
attention to what North Korea will launch.  Thus, some observers say 
that the U.S.' apparent acknowledgement of the North Korean 
assertion (that it is planning to launch a satellite) shows that the 
ROK and the U.S. are somewhat different in their positions.  The 
ROKG has maintained that whether North Korea launches a missile or a 
satellite, it would pose a threat in itself.  The ROK did not need 
to discuss the possibility that the North may launch a satellite 
because it would only benefit North Korea.  Last month, the National 
Intelligence Service and the Defense Ministry said that the ROK 
considers North Korea is preparing to launch a long-range missile. 
 
Some people interpret Blair's remark to mean that if North Korea is 
planning to launch a satellite, there is less justification for the 
U.S. to shoot it down.  Dr. Cha Du-hyun at the Korea Institute for 
Defense Analysis (KIDA) said, "Since the Obama Administration has 
not yet decided what carrot and stick to use for North Korea, 
Blair's remark might be intended to prevent the situation from 
deteriorating further."  He noted that the U.S. will not employ an 
ultra hard-line stance on North Korea for the time being. 
 
North Korea may push for a nuclear test if the Six-Party Talks are 
derailed. 
 
Meanwhile, Defense Intelligence Agency Director Lieutenant General 
Michael Maples said in a report submitted to the same hearing, "If 
the Six-Party Talks are derailed, North Korea may resume production 
of nuclear materials at Yongbyon's nuclear facilities and ratchet up 
criticism in order to make the other Six-Party countries succumb to 
its demands.  This scenario may involve an additional missile launch 
or a nuclear test by North Korea.  (As if on cue,) on March 11, 
North Korea's Foreign Ministry railed against the joint U.S.-ROK 
military exercise Key Resolve and made a menacing announcement that 
it will take 'all necessary measures to protect its sovereignty.' 
 
 
"IT IS AN EXPERIENCE WE CANNOT GAIN UNLESS WE ARE IN OUR 20S... I 
WILL LEARN A LOT" 
(Dong-a Ilbo, March 12, 2009, Page 11) 
 
By Reporter Kim Young-sik 
 
The WEST Program Is Launched with the First Group of Students Set 
for Departure. 
 
"It is an experience we cannot gain unless we are in our twenties. 
In a place where there is no one I know, I will try to get over 
difficulties on my own." 
 
Chung Jae-hoon (25, a junior majoring in journalism at Korea 
University), who attended the launching ceremony of the WEST (Work, 
English Study and Travel) Program, made the statement on March 11, 
adding, "I will experience a new life and learn about the U.S." 
 
Ahead of their departure for the U.S. next month, 190 participants 
attended the launching ceremony and orientation at the Ministry of 
Foreign Affairs and Trade on this day to be briefed on visa 
issuance, a life in the U.S. and U.S. corporate culture. 
 
Under this pilot program, participants are allowed to stay in the 
 
SEOUL 00000386  005 OF 006 
 
 
U.S. for up to 18 months while studying English (5 months), working 
as interns (12 months), and travelling in the U.S. (1 month). 
 
Foreign Minister Yu Myung-hwan said during his speech of 
encouragement, "I hope you remember that from the moment that you 
leave the ROK, you are the ROK's civilian diplomats." 
 
U.S. Ambassador to the ROK Kathleen Stephens stressed, "Go there, do 
not be afraid, and stay outside your comfort zone," adding, "This is 
about something that goes beyond the classroom and the workplace 
into an experience that you will take with you for the rest of your 
life.  So please have fun and travel." 
 
Disabled Kim Ye-sol (21, a junior majoring in art at Seoul National 
University) said, "As a person in a wheelchair, I will observe how 
favorable the environment in U.S. companies is for the disabled." 
 
The launching ceremony was attended by representatives of U.S. 
sponsors and ROK and U.S. officials, including Park Jin, Chairman of 
the National Assembly Committee for Diplomacy, Trade and 
Unification, Lee Sang-deuk and Hong Jung-wook, both lawmakers from 
the Grand National Party, Rep. Moon Kook-hyun from the Democratic 
Party, and Stanley Colvin, U.S. Deputy Assistant Secretary of State 
for Educational and Cultural Affairs. 
 
KORUS FTA: KOREA'S ONE-SIDED LOVE 
(Chosun Ilbo, March 12, 2009, Page 1, 6) 
 
By Reporter Joo Yong-joong 
 
As USTR Nominee Ron Kirk said at his Congressional confirmation 
hearing on March 10, "In the case of Korea, the current status quo 
simply isn't acceptable."  The brakes have been put on the 
procedures for ratifying the ROK-U.S. Free Trade Agreement (FTA). 
 
Officials at the Blue House, the government and the ruling Grand 
National Party cautioned against reading too much into Kirk's 
remark, saying, "It is not that the USG has clarified its official 
position," or "It does not mean asking for full-fledged 
renegotiations," but, self-consolation like this cannot change the 
position of the Obama Administration, which is lukewarm to the 
ROK-U.S. FTA. 
 
Regarding the procedures for ratifying the ROK-U.S. FTA, a warning 
light has been on since a long time ago.  Nevertheless, the ROKG and 
the ruling party have pushed for the ratification under 
self-hypnosis, "We can do it," but this time they finally hit the 
stop sign. 
 
After the U.S. House of Representatives refused to fast-track the 
U.S.-Columbia FTA last April, U.S. Congressional officials started 
to forecast, "all is over for the ROK-U.S. FTA."  At that time, the 
U.S. Democratic Presidential nomination campaign was heating up. 
The ground for arguing that it will be difficult to ratify the 
ROK-U.S. FTA was simple, according to U.S. Congressional officials: 
both Democratic presidential front-runners Obama and Clinton are 
negative about the ROK-U.S. FTA.  The majority Democratic Party is 
originally passive about free trade threatening jobs.  Furthermore, 
House Speaker Nancy Pelosi is particularly hard-line about FTAs.  In 
the U.S.'s current political atmosphere, there is no possibility 
that the ROK-U.S. FTA may be ratified by Congress. 
 
However, at that time, the ROK Embassy in the U.S. optimistically 
said, "The U.S. Congress will ratify the trade deal by June or 
August."  ROK ruling party and government officials visiting 
Washington all painted a rosy picture.  They argued, "The ROK-U.S. 
FTA is not determined by simple trade logic.  The U.S. values its 
alliance with the ROK, and even if a Democratic administration is 
launched, it would not be able to kick out the hard-won FTA." 
 
The ROK Embassy in the U.S. even asked the home country for a budget 
for lobbying Congress.  Although the Prime Minister's office was 
negative about allocating the budget, the Blue House directly came 
forward and helped the Embassy secure the budget. 
 
SEOUL 00000386  006 OF 006 
 
 
 
When Congress did not ratify the deal by the initially set deadline 
July or August, ROK trade officials presented a new scenario where 
the ROK-U.S. FTA would be ratified during the lame-duck session of 
Congress in December (between the Presidential election in November 
and the launch of a new administration in January).  The ground for 
that scenario was, "Since the Bush Administration wants to leave a 
legacy by passing the FTA, and the new administration wants the 
previous administration to resolve the FTA issue before the term of 
the new administration starts, the interests of both sides tally 
with each other." 
 
However, when the winter started to settle in Washington, the ROK 
Embassy in the U.S. was no longer able to deny the reality in 
Congress.  During the October inspection of state administration 
conducted by the National Assembly Committee for Diplomacy, Trade 
and Unification in Washington, the ROK Embassy said, "Congressional 
efforts to ratify the deal will begin in earnest from 2010."  In 
other words, it admitted that there was no possibility of the FTA 
being ratified during the Bush Administration."  Upon this news, 
President Lee Myung-bak reportedly got quite angry, saying, "They 
even made the budget request.  How could they give such an 
irresponsible answer?"  Unlike in Washington, there were still some 
expectations of the FTA in Seoul.  In this context, Grand National 
Party members of the National Assembly Committee for Diplomacy, 
Trade and Unification pushed to submit the FTA bill for ratification 
last December at the risk of crippling the operation of the National 
Assembly session. 
 
We cannot say, of course, that USTR Nominee Kirk's statement 
completely torpedoes possibility of the KORUS FTA's ratification. 
ROKG officials said that, since it is too burdensome for the Obama 
Administration to go back to the starting point on this issue, the 
U.S. will try to have "additional talks" under better conditions by 
apparently pressuring the ROK to accept "full-fledged 
renegotiations."  This explanation is reasonable.  However, it is 
difficult to deny the fact that there is a big difference between 
the optimistic view by ruling party, Blue House and government 
officials and the current atmosphere in the U.S. Congress. 
 
Why have the ROK government and ruling party been obsessed with the 
FTA based on such inaccurate information about the atmosphere in the 
Congress?  Those in Washington who heard different stories about the 
FTA from U.S. and ROK officials say, "It seemed that ROKG officials 
only clung to hopeful messages from Bush Administration officials." 
In other words, even when the Democratic Party was at the helm of 
Congress, and furthermore, the possibility of the Democratic Party 
winning the Presidential election was growing, ROK officials only 
kept their ears open to the Republican Party, which clinched the FTA 
and therefore, cannot help but have a lingering attachment to the 
pact. 
 
Then, what was the reason?  A person who sat next to 
then-Presidential candidate Lee at a forum held during the Roh 
Moo-hyun Administration gives a hint.  According to him, Lee said at 
that time, "The greatest thing that the Roh Moo-hyun Administration 
did over the past five years was the signing of the ROK-U.S. FTA." 
In fact, after his inauguration, President Lee also tried to find 
the momentum for fulfilling his campaign promise "economic revival" 
in the ROK-U.S. FTA.  Since government agencies in charge of trade 
policy, the ROK Embassy in the U.S., and ruling party officials had 
to live up to President Lee's expectations, they may have hypnotized 
themselves into thinking, "The ROK-U.S. FTA must go well." 
 
 
STEPHENS