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UNCLAS SECTION 01 OF 09 SEOUL 000615 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; April 15, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, All TVs 
Prosecution: "$3 Million out of $The 5 Million Former President 
Roh's Nephew-In-Law Received from Taekwang Industrial CEO Went to 
Company Owned by Roh's Son" 
 
JoongAng Ilbo 
Former President Roh's Close Aides Also Found to Have Received Money 
from President of Changshin Textile 
 
Dong-a Ilbo, Hankook Ilbo, Hankyoreh Shinmun, 
Segye Ilbo, All TVs 
North Korea Quits Six-Party Talks and Restarts Nuke Plants 
 
Seoul Shinmun 
ROKG Announces Plan to Join PSI Today 
 
 
DOMESTIC DEVELOPMENTS 
 
The ROKG will announce its decision today to become a fully 
operating member of the Proliferation Security Initiative (PSI). 
(All) This could increase the possibility of armed conflict between 
the two Koreas. (Hankyoreh) 
 
The ROK's plan to use its own cryptographic technique ARIA for the 
security systems of Internet phone calls from government agencies 
could fall apart under pressure from the U.S., which says that it 
would violate WTO rules if the ROK does not use the international 
cipher standard AES. (Hankyoreh) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
The UN Security Council on April 13 adopted the presidential 
statement on North Korea's April 5 rocket launch, which unanimously 
condemns the action as a contravention of UNSC Resolution 1718 
banning the country from all missile-related activities. (Chosun, 
All TVs) 
 
In response, North Korea announced yesterday that it will resume its 
nuclear weapons program and will never again take part in the 
Six-Party Talks. (All) This is North Korea's typical brinkmanship 
tactic to force bilateral dialogue with the U.S. (JoongAng, Chosun) 
Experts say that although Pyongyang threatens to build light-water 
nuclear reactors again, it is just bluffing to gain an advantage in 
negotiations with the U.S. because the North has no economic or 
technological capacity to build such a reactor on its own. (Dong-a, 
Hankoyreh) Some observers say that North Korea's threats can be 
construed as Pyongyang declaring that it will develop a highly 
enriched uranium nuclear program. (Hankook)  Meanwhile, concerns are 
growing that the detention of three Korean and American hostages may 
be prolonged. (Dong-a) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-North Korea 
------------ 
 
Conservative Chosun Ilbo reported that the UN Security Council on 
April 13 adopted the presidential statement on North Korea's rocket 
launch, which unanimously condemns the action as a contravention of 
UNSC Resolution 1718 banning the country from all missile-related 
activities.  All newspapers reported on North Korea's announcement 
yesterday that it will resume its nuclear weapons program and will 
never again take part in the Six-Party Talks. Left-leaning Hankyoreh 
Shinmun added that the North ordered U.S. and UN personnel at 
Yongbyon to leave the country. 
 
SEOUL 00000615  002 OF 009 
 
 
 
Conservative Dong-a Ilbo said that because of North Korea extreme 
reaction, international efforts to resolve the North Korean nuclear 
and missile issues have returned to the starting point, and the 
Six-Party Talks faces its biggest crisis in five years and seven 
months.  However, the newspaper and left-leaning Hankyoreh Shinmun 
quoted experts that although Pyongyang threatens to build 
light-water nuclear reactors again, it is just bluffing to gain an 
advantage in negotiations with the U.S. because the North has no 
economic or technological capacity to build such a reactor on its 
own. 
 
Meanwhile, Dong-a Ilbo reported that concerns are growing that the 
detention of three Korean and American hostages may be prolonged. 
 
Moderate Hankook Ilbo reported that if North Korea restores the 
reprocessing facilities to their original state, they can produce an 
additional 6 to 8 kilograms of plutonium.  The newspaper quoted some 
observers that North Korea's threats to construct its own 
light-water nuclear reactor seem to be a declaration that it will 
develop a highly enriched uranium nuclear program. Hankook Ilbo also 
reported that whether the presidential statement is effective is up 
to China, North Korea's economic supporter, and quoted an ROK 
high-ranking representative to the UN as saying, "The presidential 
statement is aimed at bringing the North back to the Six-Party 
Talks.If the North expresses its intention to come back to the 
negotiation table, UN sanctions could be shelved."  The newspaper 
also speculated that the presidential statement will prolong the 
cooling-off period following the rocket launch, thereby slowing down 
the USG's road map for North Korea. 
 
Hankyoreh Shinmun cited a source well-versed in the Obama 
Administration's North Korea policy as saying, "The U.S. will 
closely cooperate with other Six-Party countries to refrain from 
further provoking the North or aggravating the current situation. 
For the time being, the Obama Administration is expected to carry 
out the policy of "good-will ignorance (of the North)."  Meanwhile, 
China is expected to send a special envoy to Pyongyang to placate 
the North. 
 
Right-of-center JoongAng ilbo and conservative Chosun Ilbo construed 
North Korea's response as its typical brinkmanship tactic to force 
bilateral dialogue with the U.S.  JoongAng Ilbo said that the North 
opened the possibility of additional nuclear tests by declaring that 
it will not be bound by any existing agreements. 
 
JoongAng Ilbo editorialized: "The North's nuclear and missile 
program endangers world peace and can be regarded as an 
international criminal act rather than a defense of its sovereignty. 
 How can Pyongyang talk of sovereignty infringement when it poses 
such danger to the international community?  We may have to take up 
full membership in the Proliferation Security Initiative... We need 
some kind of defense mechanism to deter the North from its constant 
provocation." 
 
Dong-a llbo editorialized: "North Korea is gravely mistaken.  The 
president's statement contains not only the council's determination 
to not condone the North's provocation, but also concrete measures 
to implement sanctions on the North.  The world must show the North 
this time that brinksmanship, a tactic Pyongyang employs whenever 
driven into a corner, is no longer effective." 
 
Hankook Ilbo editorialized: "In this situation, a confusing debate 
over (North Korea) policy or hasty reaction would not be beneficial. 
 We should wait for North Korea to calm down and change (its 
attitude), while keeping the door of dialogue open." 
 
Hankyoreh Shinmun editorialized: "North Korea is not hiding its 
intention to focus on bilateral talks with the U.S., rather than on 
the Six-Party Talks.  This intention was revealed when the North 
specifically pointed to Japan, not the U.S., and the UN presidential 
statement, as reasons to boycott the Six-Party Talks... Through 
escalating tensions, North Korea intends to have direct negotiations 
with the U.S.  To manage the situation in a stable way and put the 
 
SEOUL 00000615  003 OF 009 
 
 
Six-Party Talks back on the right track, a united effort by 
Six-Party countries is essential." 
 
Chosun Ilbo editorialized: "International pressure on North Korea 
can succeed only with the participation of China, which holds the 
lifeline supporting the North's leadership.  That can only be 
possible if measures against North Korea are implemented at a level 
where China can participate openly - or at least implicitly agree to 
them.  But the diplomacy pursued by South Korea and the U.S. has 
stumbled at this stage.  As a result, sanctions against North Korea 
are failing to change the country's attitude." 
 
 Moderate Seoul Shimun and conservative Segye Ilbo carried 
editorials under the respective headline, "North Korea's Boycott of 
Six-Party Talks Will Only Deepen Its Isolation" and "Will North 
Korea Go down the Road of Self-Destruction?" 
 
 
 
 
 
 
 
 
All newspapers gave coverage to the ROKG's announcement today that 
it will become a fully operating member of the Proliferation 
Security Initiative (PSI).  Hankyoreh Shinmun reported that this 
could increase the possibility of armed conflict between the two 
Koreas and lead to conflict between the ROK and China. 
 
-Cuba 
----- 
All newspapers reported that the U.S. lifted its blockade of Cuba 
for the first time in 47 years.  JoongAng Ilbo describes it as the 
first product of the Obama Administration's "smart diplomacy," 
adding that this move is notable because it could impact U.S.-North 
Korea relations. 
 
 
OPINIONS/EDITORIALS 
 
¶N. KOREA PURSUING ITS OWN DESTRUCTION 
(Dong-a Ilbo, April 15, 2009, Page 31) 
 
The U.N. Security Council has unanimously adopted a president's 
statement condemning North Korea's April 5 rocket launch.  Pyongyang 
said in response that it will boycott the Six-Party denuclearization 
talks and resume its nuclear activity.  The communist country is 
using a tit-for-tat strategy to defy the international community, 
while threatening world peace by developing nuclear weapons and 
long-range ballistic missiles. 
 
The North, however, asked for the president's statement.  Despite 
global warnings not to, it launched a long-range missile and 
conducted a nuclear test in 2006.  This prompted the council to 
adopt Resolution 1718 prohibiting the North from engaging in missile 
activity.  When Pyongyang returned to the Six-Party Talks 
afterwards, the council withheld the implementation of sanctions on 
the North.  The communist country, however, has launched another 
missile under the guise of a satellite.  Given the North's betrayal, 
the council`s statement seems like a mere slap on the wrist. 
Nevertheless, Pyongyang has reacted with the most drastic measures. 
 
 
The North Korean Foreign Ministry stated yesterday, "We will never 
participate in Six-Party Talks or be bound any longer to any 
agreement of the talks."  It also threatened to strengthen its 
nuclear deterrence by reprocessing spent fuel rods in its main 
reactor at Yongbyon, review the construction of light-water 
reactors, and pursue its right to the peaceful use of space.  The 
North is set to undermine 14 years of denuclearization efforts by 
the world's leading countries.  This is no surprise, however, given 
the North's previous attempts to sabotage the Six-Party Talks 
through false accusations.  By blasting the council's statement, the 
 
SEOUL 00000615  004 OF 009 
 
 
North has clearly showed its intent not to abandon its nuclear 
ambitions. 
 
The reclusive country is gravely mistaken, however.  The president's 
statement contains not only the council's determination not to 
condone the North's provocation, but also concrete measures to 
implement sanctions on the North.  For the export of weapons of mass 
destruction, certain conventional arms and luxury goods to the North 
are likely to be banned and the North's WMD-related assets will be 
frozen.  Besides suffering isolation from the international 
community, the North is also being hit by severe economic difficulty 
and food shortages.  Now that China and Russia have endorsed the 
statement, the North has nobody to turn to.  The communist country 
is now making frantic efforts to defy the condemnation, but this 
will only invite its self-destruction. 
 
The world must show the North this time that brinksmanship, a tactic 
Pyongyang employs whenever driven into a corner, is no longer 
effective. The ROK, the U.S. and Japan must react in unison.  For 
their part, China and Russia should actively join in punishing the 
North.  No less important is Seoul's determination.  The ROK should 
declare its full-fledged participation in the U.S.-led Proliferation 
Security Initiative and be thoroughly prepared for provocations by 
the North. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
REIGNITING NUCLEAR ISSUE 
(JoongAng Ilbo, April 15, 2009, Page 46) 
 
North Korea declared yesterday that the international community 
leaves it no choice but to restart its nuclear program.  The 
declaration came as a swift response to the United Nations Security 
Council's unanimously adopted statement condemning the North's April 
5 rocket launch.  The council said the launch breached an earlier 
Council resolution banning the country from ballistic missile 
activity. 
 
North Korea reiterated that it will walk away from the Six-Party 
Talks aimed at denuclearization.  Before carrying out its long-range 
rocket launch in spite of international warnings, Pyongyang 
threatened to boycott the talks if the United Nations took action in 
response to what it called its satellite program. 
 
North Korea's response yesterday was to say it will reactivate its 
Yongbyon nuclear plant, which was shut down in 2007, and restart 
reprocessing used nuclear fuel rods. 
 
In short, North Korea said it will return to nuclear weapons 
development. 
 
Pyongyang also said it will consider building its own light-water 
nuclear reactor, which hints at the development of a uranium 
enrichment program.  The belligerent nation also suggested it will 
consider giving up its United Nations membership. 
 
North Korea appeared well prepared for possible international action 
following its rocket launch.  It issued a strongly worded statement 
berating the Security Council for its statement shortly after it was 
announced. 
 
Pyongyang may already have a second nuclear test card up its 
sleeves. 
 
As the Security Council states, with the endorsement of China and 
Russia, North Korea's rocket launch was a clear violation of its 
2006 Resolution 1718 banning any missile tests by the country.  The 
North's nuclear and missile program endangers world peace and can be 
regarded as an international criminal act rather than defense of its 
sovereignty. 
 
How can Pyongyang talk of sovereignty infringement when it poses 
 
SEOUL 00000615  005 OF 009 
 
 
such danger to the international community?  What does it think it 
can gain by threatening the world in such an irrational manner? 
 
We do not believe North Korea will carry out its threats, and we 
hope the international community will try to resolve this matter 
diplomatically and peacefully through the existing Six-Party 
channel.  We trust Pyongyang will listen. 
 
Our government will have to deal with this matter discreetly, and we 
may have to take up full membership in the Proliferation Security 
Initiative.  North Korea may be further provoked if we join the 
U.S.-led PSI, but we need some kind of defense mechanism to deter 
the North from constant provocation.  We also need to protect our 
people. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
PROBLEMATIC DECISIONS MADE BY BOTH KOREAS 
(Hankyoreh Shinmun, April 15, 2009, Page 27) 
 
Yesterday North Korea, through a statement from the Foreign 
Ministry, said it will not participate in the Six-Party Talks and is 
going to strengthen its "nuclear deterrent for self-defense."  It 
was an expected response to the United Nations (UN) Security 
Council's presidential statement that denounced Pyongyang's recent 
rocket launch for violating Security Council Resolution 1718.  North 
Korea had said, "there will be no Six-Party Talks" if the matter of 
its rocket launch was discussed at the UN Security Council. 
Nonetheless, its reaction is stronger than expected. 
 
It said it "will no longer participate in the talks, nor will it be 
bound to any agreement of the Six-Party Talks," and will therefore 
resume normal operations of its nuclear facilities and reprocess its 
spent fuel rods.  Denying the Six_Party Talks that have become the 
diplomatic framework for resolving issues facing the Korean 
peninsula, such as the North Korean nuclear issue for the past five 
years, does not signal a good and proper course of action. 
 
North Korea is not hiding its intention to focus on bilateral talks 
with the U.S., rather than on the Six-Party Talks.  This intention 
was revealed when the North specifically pointed to Japan, not the 
U.S., and the UN presidential statement, as reasons to boycott the 
Six-Party Talks.  North Korea has characterized Japan as 
"villainously trying to thwart the Six-Party Talks from the start" 
and "is openly even trying to enact sanctions of its own because of 
our satellite launch."  Through escalating tensions, North Korea 
intends to have direct negotiations with the U.S.  The North is 
taking a very dangerous approach.  Bilateral talks with the U.S. 
cannot replace the Six-Party process, and it could make the 
situation on the Korean peninsula worse in unpredictable ways. 
North Korea needs to return to the Six-Party Talks immediately. 
 
To manage the situation in a stable way and put the Six-Party Talks 
back on the right track, a united effort by Six-Party countries is 
essential.  Our own government in the ROK, however, is doing the 
opposite.  Yesterday afternoon, the Lee Myung-bak Administration 
made its final decision in favor of full participation in the 
Proliferation Security Initiative (PSI).  North Korea has for some 
time now been saying it will consider participation "a declaration 
of war" and would "respond firmly."  The Lee Administration says the 
decision is not a form of sanction against North Korea's rocket 
launch and that it is merely acting on something it had already been 
considering.  However, full participation in PSI is a type of 
sanction if you consider the timing and circumstances.  North 
Korea's reaction to the concerns and warnings of the international 
community are of course a problem, but that does not rationalize our 
government's actions as it now assumes the lead in escalating 
tensions. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
SEOUL 00000615  006 OF 009 
 
 
 
HOW TO DEAL WITH N. KOREA'S INCREASING PROVOCATION 
(Chosun Ilbo, April 15, 2009, Page 35) 
 
The United Nations Security Council on Monday unanimously adopted a 
statement condemning North Korea's rocket launch and accusing 
Pyongyang of violating UN Resolution 1718.  The Security Council 
said it would punish North Korea by reviving sanctions in Resolution 
1718 passed in 2006, but that were not implemented while there was 
progress in the six-country talks.  In protest, North Korea's 
Foreign Ministry said in a statement carried by the official Korean 
Central News Agency on Tuesday, "The DPRK (North Korea) will never 
participate in such Six-Party Talks."  North Korea added it would 
reprocess the spent fuel rods that were extracted from the nuclear 
reactor in Yongbyon, pursue the construction of a light water 
reactor and continue its long-range rocket launches.  The communist 
country has responded to criticism by restarting its nuclear 
program, which had been frozen for the past two years under the 
framework of the six-party talks. 
 
The ROK's presidential spokesman Lee Dong-kwan said on Tuesday that 
the Lee Myung-bak Administration would soon declare its full 
participation in the Proliferation Security Initiative (PSI), a 
U.S.-led initiative that aims to interdict the transfer of banned 
weapons and related technology.  Launched in 2003, a total of 94 
countries are taking part in the PSI, in order to cooperatively 
prevent the spread of nuclear and missile technology to rogue states 
or international terrorists.  But the ROK has withheld from 
participating in the initiative, mindful of North Korea's protest. 
The North previously claimed that it would consider the ROK's 
participation in the PSI a "declaration of war." 
 
Over the past few months, the ROK, the U.S. and Japan have vowed to 
address North Korea's rocket launch at the UN Security Council, 
while North Korea has declared it would scuttle the Six-Party Talks 
if the UN implements sanctions.  The problem is whether the ROK 
government has a step-by-step plan to respond to the crisis as it 
worsens.  Once implemented, options such as UN Security Council 
sanctions and participating in the PSI quickly narrow the range of 
restraints against North Korea.  It is obvious North Korea will 
ignore sanctions placed against it and proceed with further acts of 
provocation. 
 
Following the Security Council's statement, China's Foreign Ministry 
spokesman said Beijing had opposed the implementation of sanctions. 
International pressure on North Korea can succeed only with the 
participation of China, which holds the lifeline supporting the 
North's leadership.  That can only be possible if measures against 
North Korea are implemented at a level where China can participate 
openly - or at least implicitly agree to them.  But the diplomacy 
pursued by South Korea and the U.S. has stumbled at this stage.  As 
a result, sanctions against North Korea are failing to change the 
country's attitude. 
 
The ROK government appears to consider North Korea's protest against 
Seoul's participation in the PSI and sanctions as expected rites of 
passage.  But problems involving North Korea could escalate into a 
major national security crisis due to a simple misjudgment.  The 
ROK's participation in the PSI carries the possibility of triggering 
a military confrontation, should the U.S., Japan and other countries 
seek to halt a suspicious North Korea vessel in ROK waters.  If that 
happens, the government must have a preconceived plan of action on 
how it intends to deal with the situation according to different 
crisis scenarios. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
NORTH KOREA SAYS THERE WILL BE NO MORE SIX-PARTY TALKS 
(Hankook  Ilbo, April 15, 2009, Page 35) 
 
North Korea announced that it will never join the Six-Party Talks 
again.  In response to the UN Security Council's presidential 
 
SEOUL 00000615  007 OF 009 
 
 
statement condemning North Korea's rocket launch, North Korea 
boycotted all talks including negotiations for denuclearization. 
North Korea went so far as to say that it will not be bound by any 
agreement and will halt its nuclear disablement process.  This 
reaction was no surprise, but was a bit stronger than expected.  It 
is important to figure out North Korea's intention rather than 
rebuke the North for its reckless action or raise a dispute over 
(the ROK's) North Korea policy. 
 
Even prior to its rocket launch, North Korea vowed to walk away from 
the Six-Party Talks if the rocket launch is brought before the UN 
Security Council.  Therefore, it is not surprising that North Korea 
reacted strongly to the UNSC's presidential statement which contains 
more detailed sanctions than the UNSC's resolution adopted following 
North Korea's nuclear test in 2006. 
 
It is questionable how effectively the UN Security Council will 
implement sanctions on North Korea.  The ROK's full participation in 
the Proliferation Security Initiative (PSI) is unlikely to produce 
the effects ROK conservatives expect.  North Korean ships could 
avoid the ROK territorial waters.  Moreover, since ROK ships sailing 
near North Korean territorial waters outnumber North Korean ships 
(passing the ROK territorial waters), we may suffer greater adverse 
effects (from full participation in PSI.) 
 
North Korea pushed for the rocket launch despite international 
criticism and possible sanctions in order to showcase its leader Kim 
Jong-il's intention to become a more powerful and prosperous nation. 
 Considering Kim Jong-il's health and his unstable succession plan, 
North Korea will exaggerate external threats to consolidate its 
internal unity, which is the North's ultimate goal, and maintain a 
tough stance. 
 
In this situation, a confusing debate over (North Korea) policy or 
hasty reaction would not be beneficial.  We should wait for North 
Korea to calm down and change (its attitude), while keeping the door 
of dialogue open. 
 
 
FEATURES 
--------- 
 
NORTH KOREA BOYCOTTS SIX-PARTY TALKS AS EXPECTED AND SEEKS 
'CLINTON-STYLE BILATERAL TALKS' 
(Chosun Ilbo, April 15, 2009, Front page) 
 
By political reporter Kang In-seon 
 
Eight years of the Bush Administration was a nightmare for North 
Korea.  Now North Korea wants to sit face-to-face with the Obama 
Administration at a new negotiating table.  North Korea sent an 
invitation letter for talks through the Taepodong-2 rocket.  The 
U.S. responded with the UN Security Council presidential statement 
condemning the rocket launch.  On April 14, North Korea countered 
with a strong message that the relations between North Korea and the 
U.S. during the Bush Administration are invalid and they should 
return to (how they communicated bilaterally with) the Clinton 
Administration. 
 
North Korea's Foreign Ministry issued a statement denouncing the 
UNSC's presidential statement.  North Korea said it will never 
participate in the Six-Party Talks again.  North Korea added it will 
review developing its own light water reactors to possess nuclear 
capability.  North Korea went on to say that it will reprocess the 
spent fuel rods to restore nuclear facilities which have been 
disabled under the agreement of the Six-Party Talks. 
 
This reaction by North Korea was expected.  Even prior to the rocket 
launch, North Korea warned on April 24 that if its rocket launch is 
brought before the UN Security Council, it would lead to collapse of 
the Six-Party Talks.  What is the reason that North Korea insists on 
boycotting the Six-Party Talks while threatening to rescind the 
existing agreements under the Six-Party Talks and restart its 
nuclear process?  North Korea views that it can not achieve the deal 
 
SEOUL 00000615  008 OF 009 
 
 
it craves within the framework of the Six-Party Talks which were 
initiated during the Bush Administration. 
 
North Korea continues to send messages to the Obama Administration 
that it is interested in bilateral talks with the U.S.  North Korea 
conveyed its willingness to hold bilateral talks in order to improve 
the U.S.-North Korea relations through Park Han-sik, Professor at 
the University of Georgia, and Leon Sigal, Director at the Social 
Science Research Council, who have built up close relations with 
North Korea.  North Korea is saying that it wants to go back to the 
bilateral talks that it held with the Clinton Administration. 
 
However, the United States will not engage in talks with North Korea 
soon.  Bush's policy of not rewarding bad acts will not be discarded 
by the Obama Administration.  Since North Korea flagrantly violated 
UN Security Council Resolution 1718 (adopted after its 2006 nuclear 
test), the U.S. should at least pretend to chastise North Korea in 
order to maintain international rules.  Also, North Korea's rocket 
launch proved that North Korea's long-distance missile capability 
does not yet pose a threat to the U.S.  Therefore, the U.S. has no 
reason to hurry. 
 
At present, President Obama is focused on the U.S. domestic economy 
as well as issues of Afghanistan and Iraq. He is thus not in a 
position to commit fully to the North Korean issue.  The Obama 
Administration has not formed a team for addressing the North Korean 
issue, nor has it completed reviewing its North Korea policy. 
 
However, experts believe that Obama would not keep the same 
hard-line policy the Bush Administration adopted during its first 
term.  The U.S. will not, however, also sit back and watch North 
Korea bolster its nuclear capability, now that the North has vowed 
to restore its nuclear facilities.  During his candidacy, Obama 
criticized the U.S.'s North Korea policy with the logic that the 
Bush Administration increased the North's nuclear capability while 
refusing to hold bilateral talks. 
 
Under what pretext would U.S.-North Korea talks resume?  Former ROK 
Foreign Minister Han Sung-joo said that the issue of two detained 
U.S. journalists could lead to the bilateral talks.  Special 
Representative for North Korea policy Bosworth would visit North 
Korea to discuss ways (to secure the release of) the detained 
journalists.  Those visits could lead to bilateral talks for 
addressing nuclear and missile issues. 
 
 
ROK'S PLAN TO ADOPT ITS OWN PHONE ENCRYPTION TECHNIQUE COULD FALL 
APART UNDER U.S. PRESSURE 
(Hankyoreh Shinmun, April 15, 2009, Page 2) 
 
By Reporter Kim Jae-sup 
 
The U.S.: "If the ROK does not follow the international standard, it 
would violate the WTO agreement." 
 
Experts: "The agreement does not apply to security matters." 
 
The ROK's plan to encrypt Internet phone calls from government 
agencies by using its own standard cryptographic technique is on the 
verge of falling apart.  This is because the U.S. says that it would 
violate World Trade Organization (WTO) rules.  The U.S. is thus 
asking the ROK to "adopt the international standard instead." 
 
Industry officials said on April 14 that the ROKG is reconsidering 
its plan to encrypt Internet phone calls from government agencies by 
using its own standard cryptographic technique "ARIA."  U.S. telecom 
equipment makers, such as Cisco and Abaya, are asking the ROK to use 
the international encryption standard "AES" for Internet phone 
calls, which government agencies make for an official purpose.  The 
U.S. Embassy in Seoul and the office of the U.S. Trade 
Representative are also applying pressure on the ROK.  A Cisco 
official said, "We are proposing to the ROKG that it should follow 
the international standard." 
 
 
SEOUL 00000615  009 OF 009 
 
 
The National Information Society Agency, which has been in charge of 
replacing telephones at government agencies with Internet-based 
phones, decided last December to adopt the ARIA standard to prevent 
eavesdropping.  The ROKG notified Internet phone equipment makers of 
the decision through an explanatory meeting.  ARIA is an encryption 
technology developed by the National Security Research Institute, an 
agency affiliated with the National Intelligence Service.  The ROKG 
plans to replace 900,000 phones at the Ministry of Public 
Administration and Security and local government agencies with 
Internet phones.  It costs an estimated 400 billion won only to 
purchase necessary equipment. 
 
The U.S. government and Internet equipment companies claim that the 
ROK's decision to use the ARIA technique for official Internet phone 
calls would violate Article 6, Paragraph 2 of the WTO agreement on 
government procurement, which stipulates, "Technical specifications 
prescribed by procuring entities shall be based on international 
standards, where such exist."  The U.S. also included this matter in 
its first annual National Trade Estimate Report on Foreign Trade 
Barriers after President Obama's inauguration to put pressure on the 
ROKG. 
 
However, ROK experts argue that the ROKG's decision to use the ARIA 
technique does not violate the WTO agreement because "Nothing in the 
Agreement shall be construed to prevent any Party from taking any 
action or not disclosing any information which it considers 
necessary for the protection of its essential security interests." 
The White House and the Pentagon also use separate encryption 
techniques.  Lawyer Oh Jin-wook at the Hanseo law firm said, "The 
adoption of the ARIA technique is aimed at protecting official phone 
conversations from eavesdropping, and therefore, it is considered as 
a step taken for public purposes, such as national security." 
Lawyer Oh added "In particular, since the technology to load the 
ARIA apparatus into phone equipment is made public on the Internet, 
and a test bed for the technology is available to everyone, it is 
difficult to see how or in what ways U.S. companies experience 
discrimination when using ARIA." 
 
The National Information Society Agency plans as early as late this 
month to issue Requests for Bid Proposal to select Internet phone 
services providers for government agencies. 
 
 
STEPHENS