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UNCLAS SECTION 01 OF 05 SEOUL 000532 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; April 2, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
Prosecutors Probing into Link Between the Alleged $5 Million Bribe 
from Taekwang Industrial Chairman Park Yeon-cha to Former President 
Roh's Relative and Park's Overseas Business 
 
JoongAng Ilbo 
Huge Bribery Case Embroils Another Roh Supporter: Kang Geum-won, 
President of Changshin Textile Co., Under Investigation for 
Investing 7 Billion Won to Establish Bongwha Corporation 
 
Dong-a Ilbo 
240,000 Apartment Units to be Built in Green Belt Area within 25 
Kilometers of Downtown Seoul 
 
Hankook Ilbo, All TVs 
Trade Surplus Hits Record Monthly High of $4.6 Billion 
 
Hankyoreh Shinmun 
Business Circles Obtain Business-Friendly Policies, Including 
Increased Deregulation, from ROKG but Renege on Promise to Increase 
Jobs 
 
Segye Ilbo, Seoul Shinmun 
Asbestos Found in Baby Powders 
 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
President Lee Myung-bak and Japanese Prime 
Minister Taro Aso pledged yesterday to jointly 
tackle North Korea's missile and nuclear 
threats, stating that Pyongyang's planned rocket 
launch is a violation of UN resolution 1718 
prohibiting all ballistic missile activity. (All 
prints and TVs) 
 
President Lee's spokesman said that in the event 
of North Korea's rocket launch, Japan will 
propose a new Security Council resolution along 
with the U.S. and Britain.  A ROKG high-ranking 
official explained, "If a new resolution is 
submitted by Japan, the ROK and the U.S. will 
support it." (Hankyoreh) 
 
A ROKG high-ranking official said that North 
Korea should have already begun injecting fuel 
into a Taepodong-2 missile, but that the fueling 
process is apparently not being detected because 
the facilities are located underground. 
(JoongAng) 
 
An ROKG official said, "If North Korea launches 
a rocket, the ROK will notify the U.S. of its 
full participation in the Proliferation Security 
Initiative (PSI), and that we have reached this 
conclusion after consulting concerned government 
agencies." (Chosun, Segye) 
 
Minister of National Defense Lee Sang-Hee said 
at yesterday's National Assembly's defense 
committee meeting that he does not rule out the 
possibility that what North Korea plans to 
launch may be a missile. (Seoul) 
 
 
 
INTERNATIONAL NEWS 
------------------ 
 
SEOUL 00000532  002 OF 005 
 
 
 
The Office of the U.S. Trade Representative 
(USTR), in its 2009 National Trade Estimate 
Report on Foreign Trade Barriers (NTE), selected 
the issue of automotive trade as a key matter to 
be addressed in the KORUS Free Trade Agreement. 
(Dong-a, Hankook, Seoul, Segye, all TVs) 
 
North Korea warned yesterday that it will shoot 
down any U.S. spy jets entering its airspace. 
(Chosun, Segye) 
 
According to a ROKG source, there are signs that 
North Korea has recently redeployed its new 
fighter jets to a base in North Hamgyong 
Province. (Chosun) 
 
Daniel Pinkston, senior analyst for Northeast 
sia at International Crisis Group, stated 
yesterday that U.S.intelligence sources believe 
that North Korea is building a new missile base 
near its border with China. (Chosun) 
 
Riki Ellison, the founder of the Missile Defense 
Advocacy Alliance, said that the U.S. has not 
yet deployed the sea-based X-Band Radar to 
intercept North Korean missiles.  His remark is 
noteworthy because it came after Secretary 
Gates' statement that the U.S. has no plans to 
shoot down North Korean missiles. (Seoul) 
 
MEDIA ANALYSIS 
-------------- 
 
-North Korea 
---------- 
 
All media gave prominent play to the summit between President Lee 
Myung-bak and Japanese Prime Minister Taro Aso.  They pledged 
cooperation to tackle North Korea's missile and nuclear threats, 
saying Pyongyang's planned rocket launch is a violation of UN 
resolution 1718 prohibiting its ballistic missile activity. 
President Lee also said that he understands Japan's position that it 
will shoot down debris from a North Korean missile that would pose a 
threat to its territory. 
 
Left-leaning Hankyoreh Shinmun quoted President Lee's spokesman as 
saying that in the event of North Korea's rocket launch, Japan will 
propose a new Security Council resolution along with the U.S. and 
Britain.  The newspaper quoted an ROKG high-ranking official as 
saying, "If a new resolution is submitted by Japan, the ROK and the 
U.S. will support it."  However, the daily said that the reason why 
the ROK, the U.S., and Japan seek a new resolution despite a slim 
chance of its being adopted is that the resolution carries political 
significance. 
 
Right-of-center JoongAng Ilbo quoted an ROKG high-ranking official 
as saying that North Korea must have started to inject fuel into a 
Taepodong-2 missile by now, but it is not being detected apparently 
because the fueling facilities are located underground.  In a 
related story, the daily also cited ROK experts as saying that a 
Taepodong-2 missile is estimated to be 42 meters long and a rocket 
launch may cost 300 to 500 million dollars. 
 
Conservative Chosun Ilbo quoted an ROKG official as saying that if 
North Korea launches a rocket, the ROK will notify the U.S. of its 
full participation into the Proliferation Security Initiative (PSI). 
 
 
Most newspapers reported that North Korea warned yesterday that it 
will shoot down any U.S. spy jets entering its airspace.  Chosun 
Ilbo quoted an ROKG source as saying that North Korea was spotted to 
have moved latest-model fighters from their base to another in North 
Hamgyong Province. 
 
SEOUL 00000532  003 OF 005 
 
 
 
Chonsun Ilbo also reported that Daniel Pinkston, senior analyst for 
Northeast Asia at International Crisis Group, argued that U.S. 
intelligence sources believe that North Korea is building a new 
missile base near its border with China. 
 
Moderate Seoul Shinmun reported that Minister of National Defense 
Lee Sang-Hee said yesterday at the National Assembly's defense 
committee that he does not rule out the possibility that what North 
Korea plans to launch may be a missile.  The daily also quoted Riki 
Ellison, the founder of the Missile Defense Advocacy Alliance, as 
saying that the U.S. has not yet deployed the sea-based X-Band Radar 
to intercept a North Korean missile.  This remark is noteworthy 
because it came after Secretary Gates' statement that the U.S. has 
no plans to shoot down a North Korean missile. 
 
Conservative Segye Ilbo quoted members of the New Beginnings Policy 
Research Study Group as saying, "In the absence of a credible 
military option and with sanctions having only limited effect, the 
U.S. should continue to use the Six-Party Talks and, within that 
framework, bilateral talks with North Korea to explore whether a new 
mix of inducements and pressures might achieve U.S. and ROK goals." 
 
Conservative Dong-a Ilbo editorialized: "The ROKG should reaffirm 
its strong determination not to tolerate North Korea's nuclear and 
long-range ballistic missile.  This should, of course, become the 
pressing goal of cooperation between the ROK and the U.S... . The 
ROKG should also reconsider regaining the wartime operational 
control of ROK troops because our military capability alone cannot 
curb or deter North Korea's nuclear and missile threats... In order 
to protect the ROK people and territory, the ROKG should also 
positively consider its full participation in the Proliferation 
Security Initiative and Missile Defense system." 
 
-G-20 Summit 
 --------- 
 
JoongAng Ilbo reported that since the U.S. and Europe have different 
solutions to the economic crisis, an agreement from the G-20 summit 
will be limited. 
 
Chosun Ilbo reported that with the U.S. and Japan favoring "economic 
stimulus" and France and Germany supporting "stronger financial 
regulations," world leaders are engaging in a war of nerves through 
the media. 
 
Most newspapers reported that U.S. and Russian Presidents reopened 
talks on nuclear arms reduction.  Conservative Dong-a Ilbo replayed 
a Russian news story that the two nations agreed to reduce their 
strategic nuclear warheads to 2,200, respectively. 
 
Dong-a Ilbo and Hankook Ilbo reported that the Presidents of the 
U.S. and Iran had their first official contact in 30 years and 
agreed to cooperate on the Afghan issue.  Hankyoreh Shinmun carried 
the story under the headline, "Will Spring Wind Blow in U.S.-Iran 
Relations?" 
 
OPINIONS/EDITORIALS 
------------------- 
COUNTERING NK'S MISSILES AND NUKE THREATS 
(Dong-a Ilbo, April 2, 2009, Page 31) 
 
North Korea's missile threat is showing no end in sight.  Having 
announced its plan to launch its ballistic missile Taepodong-2 
despite a ban by the UN Security Council, Pyongyang stated that, "If 
sanctions are submitted to the UNSC, the Six-Party nuclear talks 
will collapse, and we will stop dismantling our nuclear facilities." 
 The North even threatened to conduct another nuclear test.  While 
preparing its serious aggression against the international 
community, the North is increasing its threat to the world. 
 
The North also warned the South by stating that it will consider 
Seoul's participation in the Proliferation Security Initiative a 
declaration of all-out war.  Pyongyang is also detaining two 
 
SEOUL 00000532  004 OF 005 
 
 
American journalists and one South Korean from the Kaesong 
industrial complex, threatening to imprison them long term.  The 
North is using the inhumane action of taking hostages as a 
bargaining chip to pressure the ROK and the U.S. 
 
The North claims that it seeks to launch a satellite, but the 
Taepodong-2 is a disguised attempt to develop weapons of mass 
destruction.  The North conducted a nuclear test in 2006; if North 
Korea successfully launches the (Taepodong-2) missile, it will 
effectively have inter-continental ballistic missiles capable of 
carrying nuclear weapons.  Moreover, the International Crisis Group 
claimed that Pyongyang has indeed manufactured small nuclear 
warheads, which is disturbing news.  If the North possesses nuclear 
weapons, its primary target will be the ROK.  Despite the alarming 
situation, Washington has ruled out intercepting the Taepodong-2 if 
it is launched.  President Lee Myung-bak also says he opposes a 
military response.  This is tantamount to voluntarily downplaying 
the threat and abandoning a necessary counter-response. 
 
The ROK and the U.S. are adding to public fears by not disclosing 
detailed information on the North's nuclear weapons.  Seoul's 
strategy towards Pyongyang in not the same as that of Washington, 
which formulates its policy from a global perspective.  A joint 
policy research group led by the Asia-Pacific research center at 
Stanford University and the Korea Society in New York reported that 
Washington will tolerate Pyongyang's possession of a small quantity 
of nuclear weapons if the North refrains from nuclear proliferation. 
 The U.S. government designated North Korea as a country possessing 
nuclear weapons in various documents including those submitted at 
the confirmation hearings of Leon Panetta as Central Intelligence 
Agency chief and as a 2008 report on the assessment of the joint 
operation environment prepared by the joint military command of the 
U.S. Defense Department. 
 
The ROKG should reaffirm its determination to not tolerate North 
Korea's nuclear and long-range ballistic missiles.  This commitment 
should, of course, be an important point of agreement between the 
ROK and the U.S.  The ROKG should also rethink the transfer of 
wartime operational control of ROK troops and the dismantlement of 
the ROK-U.S. Combined Forces Command, currently scheduled for April 
17, 2012.  In the near future, we cannot curb or even deter North 
Korea's nuclear and missile threats with only our own military 
capabilities.  Security experts point out that there will be no 
defense measures as effective as the ROK-U.S. Combined Forces 
Command until (the ROKG) perfects its defense capabilities against 
North Korea.  To protect the ROK people and territory, the ROKG 
should also consider fully participating in the Proliferation 
Security Initiative and Missile Defense system. 
 
(We have compared the English version on the website with the Korean 
version and made some changes to make them identical.) 
 
A SWIFT RESPONSE TO U.S. TRADE POLICY IS NEEDED 
(Segye Ilbo, April 2, 2009, Page 31) 
 
The Obama Administration released its annual report on trade 
barriers for the first time since taking office.  In the report, the 
Office of the United States Trade Representative (USTR) officially 
confirmed that, regarding the Korea-U.S. Free Trade Agreement (KORUS 
FTA), automotive trade is a pending issue both countries should deal 
with swiftly and effectively.  This position may indicate that the 
U.S. intends to change the provisions relating to automotive trade 
in the KORUS FTA.  Previously, 16 Democrats from the House Ways and 
Means Committee sent a letter to President Obama criticizing the 
trade barriers in the ROK's automobile market. 
 
U.S. Trade Representative Ron Kirk said that the U.S. will make a 
list of offensive foreign trade barriers and bring those cases 
before the World Trade Organization (WTO) or engage in (appropriate) 
bilateral talks.  This is the first time that the USTR is drawing up 
a blacklist of offenders for possible prosecution, apparently 
because members of the U.S. Congress called for an aggressive trade 
policy.  This stance is worrisome, given that our economy relies 
heavily on foreign trade. 
 
SEOUL 00000532  005 OF 005 
 
 
 
The U.S. calls for foreign countries to lift trade barriers while 
pursuing trade protectionism at home.  It seems that the U.S. says 
one thing and does another.  In February, the U.S. Congress passed a 
massive economic stimulus package that included 'Buy American' 
clauses mandating the exclusive use of U.S. steel products in all 
public works projects.  These provisions ignited controversies over 
trade protectionism.  According to a recent report released by the 
World Bank, the U.S. is among 17 of the G20 countries that have 
implemented trade restrictive measures since last November.  The 
U.S. has been raising its own trade barriers while trying to knock 
down the barriers of other countries. 
 
The ROKG should take swift action to counter trade protectionist 
moves by the U.S.  President Lee Myung-bak should communicate his 
deep concern to President Obama during the ROK-U.S. summit.  The 
ROKG should bear in mind that promoting the national welfare is the 
fundamental goal of international diplomacy. 
 
FEATURES 
-------- 
ILLEGAL UNDOCUMENTED KOREANS IN THE U.S. NUMBER 240,000 
(KBS, April 2) 
 
There are 240,000 illegal undocumented Koreans residing in the U.S. 
 
Citing the "Census on Undocumented Aliens as of January 2008" 
recently released by the Department of Homeland Security, U.S.A 
Hankook Ilbo reported that the number of undocumented Koreans 
residing in the U.S. increased 37% to 240,000 over eight years ago. 
Korea supplies the 6th largest group of illegal aliens in the U.S., 
behind Mexico (7.03 million), El Salvador (570,000), Guatemala 
(430,000), the Philippines (300,000), and Honduras (300,000). 
 
An aggregate of 11.6 million undocumented aliens currently reside in 
the U.S. 
 
 
STEPHENS