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UNCLAS SECTION 01 OF 06 SEOUL 000600 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; April 14, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo 
Prosecution: "The $6 Million Former President Roh Received from 
Taekwang Industrial CEO was a Reward 
for Business Favors" 
 
JoongAng Ilbo 
Economic Experts from ROK, China and Japan 
Call for Creation of an Asian Monetary Fund 
 
Dong-a Ilbo, Hankook Ilbo, All TVs 
Taekwang Industrial CEO Testifies: "Former President Roh Called Me 
in June 2007 to Ask for Money to Give His Son 
who was Studying in the U.S." 
 
Hankyoreh Shinmun, Seoul Shinmun 
Prosecution: "Former President Roh's Son Had Ownership of Some of 
the $5 Million which was Wired from Taekwang Industrial CEO to the 
Former President's Nephew-In-Law" 
 
Segye Ilbo 
Taekwang Industrial CEO's Close Confidant Visited Blue House Ten 
Times after Taekwang CEO's $1 Million was Delivered to Former 
President Roh's Side 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Trade Minister Kim Jong-hoon told the National Assembly yesterday 
that the U.S. seems to be increasingly positive about ratifying the 
KORUS FTA. (Segye, Seoul, KBS, Pressian) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
Since the UN Security Council (UNSC) has agreed to adopt a 
presidential statement condemning North Korea's rocket launch, all 
eyes are on what steps North Korea will take in response. There is 
speculation that North Korea might threaten to boycott the Six-Party 
Talks or stage military provocations near the Northern Limit Line 
(NLL), the de facto sea border between the two Koreas in the West 
Sea, while aiming for direct talks with the U.S. (JoongAng, 
OhmyNews) 
 
"America's North Korea Envoy Lying Low:" ROK diplomats are 
complaining that Stephen Bosworth, the U.S. Special Representative 
for North Korea Policy, has been conspicuous by his absence in the 
10 days since North Korea's rocket launch. An ROKG official was 
quoted as saying: "We know that Ambassador Bosworth visits 
Washington once a week. But we don't know what exactly he does 
there." Another official said: "We need more time to find out what 
sort of North Korea policy Bosworth has in mind." (Chosun) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-North Korea 
------------ 
Right-of-center JoongAng Ilbo and OhmyNews, a progressive online 
newspaper, carried reports on possible steps North Korea might take 
in response to the UNSC's agreement to adopt a presidential 
statement condemning North Korea's rocket launch.  The media outlets 
agreed that North Korea would likely employ its past strategy of 
heightening tensions on the Korean Peninsula, while aiming for 
direct talks with the U.S. 
 
Citing local experts, JoongAng Ilbo, in particular, speculated that 
 
SEOUL 00000600  002 OF 006 
 
 
North Korea might use different strategies toward the U.S. and the 
ROK: As for the U.S., North Korea might threaten to boycott the 
Six-Party Talks, while demanding bilateral talks with the U.S.  As 
for the ROK, on the other hand, the communist state might present 
tangible threats, including military provocations near the Northern 
Limit Line (NLL), the de facto sea border between the two Koreas in 
the West Sea. 
For the U.S., the North might take sterner measures, such as 
threatening to boycott the Six-Party Talks or to suspend nuclear 
disablement work at Yongbyon.  At the same time, the North may seek, 
at least behind the scenes, an opportunity for bilateral contact 
with the U.S.  Conversely, the North may look to more tangible 
threats, including military provocations near the Northern Limit 
Line (NLL), the de facto sea border between the two Koreas in the 
Yellow Sea. 
 
Conservative Chosun Ilbo, in an article titled "America's North 
Korea Envoy Lying Low," observed that ROK diplomats are complaining 
that Stephen Bosworth, the U.S. Special Representative for North 
Korea Policy, has been conspicuous by his absence in the 10 days 
since North Korea's rocket launch.  The newspaper explained that 
Ambassador Bosworth has not spoken to his ROK counterpart Wi 
Sung-lac since his press interview in Washington on April 3, two 
days before the launch.  The report quoted an ROKG official's 
statement: "We know that Ambassador Bosworth visits Washington once 
a week.  But we don't know what exactly he does there."  Another 
official was also quoted as saying: "We need more time to find out 
what sort of North Korea policy Bosworth has in mind." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
 
FEATURES 
-------- 
 
WILL NORTH KOREA VIOLATE NLL OR REJECT SIX-PARTY TALKS? 
(JoongAng Ilbo, April 14, 2009, Page 13) 
 
By Reporter Chae Byung-gun 
 
North Korea's Countermove to the UNSC Draws Attention 
 
While seeking direct dialogue with the U.S., the North is expected 
to use its past strategy of escalating tensions. 
 
With the UN Security Council agreeing to adopt a presidential 
statement condemning North Korea's rocket launch as a "violation of 
UNSC Resolution 1718," the situation on the Korean Peninsula is 
entering a critical phase.  This is because North Korea's 
countermove will have a direct impact on U.S.-North Korea and 
inter-Korean relations. 
 
After test-firing a rocket on April 5, nothing was heard from North 
Korea until April 13.  Before the launch, there was a downpour of 
threatening statements from the country, such as "Any UN discussion 
(in regard to North Korea's rocket launch) will be seen as a hostile 
act" and "Strong, necessary countermeasures will be taken." But 
after the launch, the threats stopped.  This (silence) could be a 
sign that Pyongyang is preparing for the expected adoption of the 
UNSC's presidential statement on April 14. 
 
Some observers mention the possibility that the North might use 
different strategies toward the U.S. and the ROK. 
For the U.S., the North might take sterner measures, such as 
threatening to boycott the Six-Party Talks or to suspend nuclear 
disablement work at Yongbyon.  At the same time, the North may seek, 
at least behind the scenes, an opportunity for bilateral contact 
with the U.S.  Conversely, for the South, the North may look to more 
tangible threats, including military provocations near the Northern 
Limit Line (NLL), the de facto sea border between the two Koreas in 
the Yellow Sea. 
 
 
SEOUL 00000600  003 OF 006 
 
 
Kim Sung-han, Professor of International Relations at Korea 
University, predicted, "While threatening to halt the Six-Party 
Talks, the North will demand bilateral contact with the U.S."  In 
other words, North Korea will choose the path it took in 1998 and 
¶2006.  After North Korea launched the Taepodong-1 missile in August 
1998, it engaged in missile talks with the U.S. in New York in 
October that same year and invited U.S. North Korea Policy 
Coordinator William Perry to Pyongyang in May 1999, which (brought 
about a reversal) in U.S.-North Korea relations.  Furthermore, in 
2006, after test-firing the Taepodong-2 missile and conducting a 
nuclear test, the North succeeded in securing bilateral talks in 
Berlin the following January between North Korean and U.S. chief 
negotiators to the Six-Party Talks. 
 
This time again, since the U.S. said that it would not shoot down a 
missile, the North's response to the U.S. was different from (its 
response to) other (countries.).  On April 2, right before the 
rocket launch, the Chief of the General Staff of the (North) Korean 
People's Army threatened Japan with a "thunderbolt of fire," but 
said to the U.S., "The U.S. should immediately withdraw armed forces 
deployed (in the Sea of Japan) if it does not want to receive 
damage." 
 
Meanwhile, with the ROKG likely to join the Proliferation Security 
Initiative (PSI), the NLL has emerged as an important variable when 
it comes to inter-Korean ties.  In reference to the PSI, Minister of 
Foreign Affairs and Trade Yu Myung-hwan said at the National 
Assembly on April 13, "We are in final consultations with related 
nations."  Last month, however, the North declared, "We will not 
allow (the enemy) to infringe even 0,001mm upon (the territorial 
waters of) the DPRK," further escalating tension near the NLL. 
 
 
AMERICA'S N. KOREA ENVOY LYING LOW 
(Chosun Ilbo, April 14, 2009, Page 6) 
 
ROK diplomats are complaining that Stephen Bosworth, the U.S. 
Special Representative for North Korea Policy, has been conspicuous 
by his absence in the 10 days since North Korea's rocket launch. 
Some say that he is waiting until the delicate debate over UN 
Security Council sanctions has ended and a setting for the 
U.S.-North Korea high-ranking talks is created. 
 
Bosworth, a part-time government employee, has not been seen in 
public since he resumed his duties as dean of The Fletcher School at 
Tufts University following a press interview he gave in Washington 
on April 3, two days before the North launched the rocket.  Since 
then, he has not spoken to his ROK counterpart, Wi Sung-lac. 
 
"We know that Ambassador Bosworth visits Washington once a week," an 
ROK official complained.  "But we don't know what exactly he does 
there."  Another government official here said, "We need more time 
to find out what sort of North Korea policy Bosworth has in mind." 
 
Some observers say Bosworth is keeping a low profile because he is 
buying time to fine-tune North Korea policy with U.S. President 
Barack Obama.  "Bosworth may be in some confusion because he has 
expressed views toward the North that were too conciliatory, 
apparently because he didn't read President Obama's mind properly," 
said Prof. Kim Sung-han of Korea University. 
 
In the interview on April 3, Bosworth said pressure on the North was 
"not the most productive line of approach."  He added that he was 
ready to visit Pyongyang and resume the Six-Party Talks once the 
"dust from the missiles settles."  But two days later, Obama came 
out strongly against the long-range rocket launch, saying, "Rules 
must be binding. Violations must be punished. Words must mean 
something." 
 
There were attacks from conservatives in Washington, who accused the 
administration of lacking resolve. 
 
Moreover, some people note that Special Representative Bosworth 
shows a passive attitude in daily consultations since he regards his 
 
SEOUL 00000600  004 OF 006 
 
 
position as too high.  A diplomatic source said, "It seems that 
Bosworth is preparing to hold talks with North Korean First Vice 
Foreign Minister Kang Sok-ju, not with Kim Kye-gwan, the North's 
Chief Delegate to the Six-Party Talks.  But Yun, Duk-min, professor 
at the Institute of Foreign Affairs & National Security said that 
since North Korea rejected Bosworth's proposed visit, it seems that 
North Korea is not satisfied with him.  He added that North Korea 
would consider U.S. Secretary of State Clinton as the U.S. partner 
in bilateral talks. 
 
(We have compared the English version on the website with the Korean 
version and made some changes to make them identical.) 
 
 
U.S. SEEN AS FAVORABLE TOWARD KORUS FTA 
(KBS, April 13, 2009) 
 
Trade Minister Kim Jong-hoon says the U.S. seems to be increasingly 
positive about the possible ratification of the Free Trade Agreement 
with the ROK.  In a parliamentary session on Monday, Kim said that 
in general, Washington seems to be displaying a positive outlook on 
the trade deal.  Assistant U.S. Trade Representative Danny Sepulveda 
has recently said that the U.S.T.R. wants to address outstanding 
issues on the pending free trade agreements with Panama, Colombia 
and the ROK without renegotiating their texts.  Kim said the U.S. 
official's remarks are very significant. But he was quick to add 
that the government has not yet received any official offer or 
proposal from the U.S. in regards to ratification.   Kim also said 
that his ministry and the U.S. Trade Representative (USTR) will 
start more in-depth discussions next month on the ratification of 
the free trade accord signed in June 2007. 
 
 
U.S. INCREASINGLY POSITIVE ON KORUS FTA: TRADE MINISTER 
(Arirang news, April 13, 2009) 
 
ROK Trade Minister Kim Jong-hoon says he believes that the U.S.' 
stance over the Korea-U.S. Free Trade Agreement is turning positive. 
 A U.S. trade journal, "Inside US Trade", reported on Friday that 
Assistant U.S. Trade Representative Danny Sepulveda told business 
representatives that the USTR intends to address pending issues on 
FTAs with Panama, Colombia and the ROK without renegotiating.  And 
during a meeting held at the National Assembly on Monday the ROK 
trade minister said that the U.S. is revising its trade policy and 
that overall it is taking an increasingly positive stance towards 
the Korea-U.S. trade pact.  He said that although the U.S. has 
expressed dissatisfaction over the trade deal it did not mention 
renegotiation which he views as an encouraging sign.  Kim went on to 
say that talks between the ROK's Ministry of Foreign Affairs and 
Trade and the U.S. Trade Representative are expected to be held in 
May prior to the Korea-U.S. summit talks scheduled for June.  The 
trade minister also said that he believes the ROK's initial move of 
ratifying the FTA would prompt the U.S. to follow suit.  The 
bilateral trade pact was concluded in April and signed in June of 
¶2007.  Ratification of the deal has been delayed, however, due to 
opposition from Barack Obama who called it "badly flawed" and 
"imbalanced" during his presidential campaign. 
 
 
"USTR WANTS FTA WITH ROK RATIFIED WITHOUT CHANGES" 
(Arirang news, April 13, 2009) 
 
A senior U.S. trade official says Washington wants to launch the 
already-signed Free Trade Agreement with the ROK without making 
amendments. 
 
An American trade journal called Inside US Trade reports that 
Assistant U.S. Trade Representative Danny Sepulveda told business 
representatives that the USTR wants to address outstanding issues on 
pending FTAs with the ROK and other countries without 
renegotiations.  The news follows remarks by the Obama 
Administration that the FTA with the ROK, which was sealed when 
George W. Bush was president, is "deeply flawed" and "imbalanced." 
Both the U.S. Congress and the ROK National Assembly have yet to 
 
SEOUL 00000600  005 OF 006 
 
 
ratify the trade deal since trade officials from both sides ended 
negotiations in 2007. 
 
 
NORTH KOREA "BOYCOTTS SIX-PARTY TALKS... RESCINDS EXISTING 
AGREEMENTS" 
(Yonhap News, April 14, 2009) 
 
By Reporter Lim Joo-young 
 
North Korea hints that it may bolster its nuclear deterrent by 
reprocessing spent fuel rods, consider building its own light-water 
nuclear reactor, and continue efforts to test-fire long-range 
rockets. 
 
In protest of the UN Security Council's April 14 adoption of the 
presidential statement condemning North Korea's rocket launch as a 
violation of UNSC Resolution 1718, the North Korean Foreign Ministry 
issued a statement saying, "We will never join the Six-Party Talks 
again," and "We will not be bound by any agreement." 
 
According to the (North) Korean Central News Agency,  the North will 
"fully reprocess" the spent fuel rods from the Yongbyon Nuclear 
Complex and take steps to  restore the nuclear facilities to their 
original state.  The statement went on to say, "(North Korea) will 
continue to bolster (its) nuclear deterrent for self defense." 
 
The statement also said that the North will "positively consider 
building its own light-water nuclear reactor to complete its 
nuclear-powered industrial structure" and that "under international 
laws, including the Outer Space Treaty, we will continue to exercise 
our independent right to use space," hinting at its continued 
efforts to test-fire long-range rockets. 
 
The Foreign Ministry statement went on to say, "The spirit of 
respecting each other's autonomy and sovereignty, which is specified 
in the September 19 Joint Statement on the denuclearization of the 
Korean Peninsula, is the basis and life of the Six-Party Talks," 
arguing, "Now that the Six-Party Talks have turned into a platform 
for infringing upon our sovereignty and seeking our disarmament and 
the overthrow of our system, the Six-Party Talks have irreversibly 
lost their reason for being." 
 
North Korea said in the statement that it has no choice but to 
bolster its nuclear deterrent capability against increased military 
threats from hostile countries.  The statement also said that North 
Korea will restart and strengthen its efforts to develop nuclear 
programs, including the restoration of nuclear facilities and the 
reprocessing of spent fuel rods. 
 
In the statement, North Korea noted that it would be a great mistake 
if the hostile countries thought that they could force North Korea 
to surrender.  The statement went on to say that even if the 
Six-Party Talks were scrapped and the denuclearization process 
derailed, North Korea would maintain peace and security of the 
Korean Peninsula in a responsible manner through its mighty military 
power. 
 
North Korea declared the UN Security Council's presidential 
statement to be a hostile act taken by the U.S. and "its followers 
(who are opposed) to (North Korea's) peaceful satellite launch" 
under the pretext of the UN Security Council.  North Korea severely 
denounced that taking issue with its rocket launch is an intolerable 
insult to its people and an unacceptable criminal act. 
 
Regarding the international community's assertion that North Korea's 
satellite launch is aimed at enhancing its long-distance missile 
capability, the North refuted in the statement that the nature of 
the situation does not lie there.  North Korea added that what is 
serious is that the UN Security Council's standard of behavior 
depends (only) on (the country) executing a launch, regardless of 
whether what is being launched is a satellite or a missile. 
 
The North Korean statement said that according to U.S. logic, Japan 
 
SEOUL 00000600  006 OF 006 
 
 
can carry out a satellite launch because it is a "puppet" of the 
U.S. while the North should not because it has a different 
(political) system and is not compliant.  North Korea went on to say 
that it is the UN Security Council that swallowed this "burglar" 
logic of the U.S., railing against UN Security Council permanent 
members. 
 
The statement added that (the adoption of the UNSC's presidential 
statement) clearly shows that sovereignty equality and fairness 
under the UN Charter is merely empty rhetoric and only the logic of 
power works in international relations. 
 
 
STEPHENS