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UNCLAS SECTION 01 OF 06 SEOUL 001081 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 8, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Dong-a Ilbo, All TVs 
Simultaneous "Cyber Terror" Attacks on Major Internet Sites 
at Home and Abroad 
 
JoongAng Ilbo 
Blue House, Defense Ministry Homepages Attacked 
 
Hankook Ilbo, Segye Ilbo, Seoul Shinmun 
Unreasonable Tax Cuts Cause Unreasonable Tax Increases; 
 
In a Desperate Attempt to Restore Fiscal Health, ROKG Seeks 
to Levy More Taxes on Landlords, Smokers and Drinkers 
 
Hankyoreh Shinmun 
ROKG Found to Have Used Obsolete Data for Environmental Impact 
Assessment of Four-Rivers Restoration Projects 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
An unnamed ROKG official said yesterday that the ROKG plans to begin 
talks to revise the Atomic Energy Agreement with the U.S. around 
October and to seek U.S. agreement on the ROK's self-production of 
low-enriched uranium, the fuel required to operate nuclear reactors. 
(JoongAng, Dong-a, Hankyoreh, Segye, Seoul, all TVs) 
 
The USFK said yesterday that it will open a three-day humanitarian 
assistance and disaster relief multilateral conference from July 
8-10 at Yongsan Garrison in Seoul to brace for a possible collapse 
of North Korea. (Chosun) 
 
James J. Przystrup, a senior research fellow at the Institute for 
National Strategic Studies (INSS), in a July 7 seminar hosted by the 
Korea Research Institute for Strategy, called for Seoul and 
Washington to establish a contingency plan for an emergency in North 
Korea because there is increasing uncertainty about the North. 
(JoongAng) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
President Barack Obama, when asked in a July 7 CBS interview how 
precarious the security situation is in the wake of North Korea's 
nuclear tests and the new sanctions that resulted, said: "I don't 
think that any war is imminent with North Korea. I think they 
understand that they would be overwhelmed in a serious military 
conflict with the U.S." (Chosun) 
 
Under Secretary of Treasury for Terrorism and Financial Intelligence 
Stuart Levey will visit China and Hong Kong this week to step up 
efforts to cut off sources of hard currency for the North Korean 
regime. (Dong-a, Hankook, Segye, all TVs) 
 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
Conservative Chosun Ilbo quoted President Barack Obama, when asked 
in a July 7 CBS interview how precarious the security situation is 
in the wake of North Korea's nuclear tests and the new sanctions 
that resulted, as saying: "I don't think that any war is imminent 
with North Korea. I think they understand that they would be 
overwhelmed in a serious military conflict with the U.S." 
 
 
SEOUL 00001081  002 OF 006 
 
 
Most ROK media reported on Under Secretary of Treasury for Terrorism 
and Financial Intelligence Stuart Levey's visits to China and Hong 
Kong this week to step up efforts to cut off sources of hard 
currency for the North Korean regime.  Conservative Dong-a Ilbo's 
headline read: "U.S. Poised to Squeeze N. Korea's Financial Belt 
from China to Southeast Asia" 
 
Regarding USFK Commander Gen. Walter Sharp's supposed remarks that 
Washington could discuss revising the bilateral agreement 
restricting the range of the ROK's ballistic missiles, a Dong-a Ilbo 
editorial argued: "North Korea has fired 18 missiles this year, 
including a long-range missile that flew 3,200 km. ... Military 
experts have raised fears, with one saying, 'North Korea now has the 
capacity to attack key military targets across South Korea.'  This 
is a threat as serious as the North's nuclear weapons.  Seoul's 
missile capacity lags far behind Pyongyang's.  Under the (current) 
agreement, the ROK cannot develop ballistic missiles with a range of 
300 km or more and weighing 500 kilograms or more.  Seoul has the 
technology but cannot adequately tackle Pyongyang's missile threat 
due to the missile agreement with Washington." 
 
President Obama's Visit to Russia 
Right-of-center JoongAng Ilbo carried an analysis that said that 
President Obama earned two things during his visit to Russia: First, 
by wining Russian concessions to allow U.S. troops and weapons bound 
for Afghanistan to fly over Russian territory, President Obama can 
save $133 million in military spending annually.  Furthermore, by 
successfully concluding negotiations with Russia, President Obama 
has removed concerns about his lack of diplomatic experience. 
 
JoongAng Ilbo editorialized: "By reaching an historic agreement with 
Russian President Medvedev on nuclear arms reduction, President 
Obama made it clear that a 'nuclear-free world' is not merely 
rhetoric but a practical goal the human race should pursue. ...  The 
U.S. and Russian leaders have come closer to fulfilling the 
obligations required by the Nuclear Non-Proliferation Treaty (NPT), 
thus securing the justification to call on other countries to comply 
with their obligations under the NPT.  This is why this agreement 
must and will be a significant first step toward a 'nuclear-free 
world.'" 
 
-Uighur Riots in Xinjiang 
------------------------- 
Conservative Chosun Ilbo noted in an inside-page report that 
Beijing's invitation of foreign journalists to Urumqi, Xinjiang's 
capital and the site of the unrest, is a radical departure from its 
previous practice of blocking foreign access whenever there were 
large incidents or ethnic clashes in the country.   Chosun wrote in 
the headline: "China's Opening of the Site of Unrest is a Scheme to 
Highlight the Violence of Uighurs." 
 
Right-of-center JoongAng Ilbo wrote in an editorial: "The Uighurs 
are the most proactive people among the 55 minority ethnic groups in 
China in seeking independence from China.  Accordingly, if the 
current riots and Beijing's strong crackdown continue in the 
Xinjiang Uyghur Autonomous Region, the region will inevitably be 
plunged into extreme chaos.  Furthermore, given that certain forces 
in neighboring Muslim countries support the Uighurs' independence, 
the situation might escalate into a new instability in international 
politics." 
 
Left-leaning Hankyoreh Shinmun, in an editorial entitled "Uighur 
Incident: the Problem Lies in Beijing's Discrimination and Exclusion 
of Uighurs," argued: "Unless China makes proactive efforts to 
respect the national identities of minority ethnic groups and to 
reduce economic discrimination against them, the volatile situations 
in the Xinjiang and Tibetan regions will continue.  It is high time 
for China to reexamine its policies toward minority ethnic groups." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
ROK NEEDS A STRONGER MILITARY 
 
SEOUL 00001081  003 OF 006 
 
 
(Dong-a Ilbo, July 8, 2009, Page 31) 
 
U.S. Forces Korea commander Gen. Walter Sharp (was reported to have) 
recently said Washington could discuss a revision to the bilateral 
agreement restricting the range of Korea's ballistic missiles.  He 
(purportedly) said this at a briefing to assistants to ruling and 
opposition party lawmakers.  Back in April, Prime Minister Han 
Seung-soo told the National Assembly, "It is time for a revision to 
the missile agreement to be seriously discussed at the (South) 
Korea-U.S. defense ministers meeting."  Sharp's comments can be seen 
as a positive U.S. response to Han's statement. (Editor's Note: We 
understand General Sharp made no such comment.) 
 
Additionally, North Korea has fired 18 missiles this year, including 
a long-range missile which flew 3,200 kilometers.  Most of them, 
however, were short-range missiles with a range between 100 and 400 
kilometers.  Military experts have raised fears, however, with one 
saying, "North Korea now has the capacity to attack key military 
targets across South Korea."  This is a threat as serious as the 
North's nuclear weapons.  Seoul's missile capacity lags far behind 
Pyongyang's.  Under the agreement, South Korea cannot develop 
ballistic missiles with a range of 300 kilometers or more and 
weighing 500 kilograms or more.  Seoul has the technology but cannot 
adequately tackle Pyongyang's missile threat due to the missile 
agreement with Washington. 
 
The missile restriction dates back to the Park Chung-hee 
Administration of the 1970s.  When South Korea began developing 
missiles, the U.S. intervened to restrict their limit to 180 
kilometers.  The range was extended to 300 kilometers through a 
revision in 2001, but the gap between the two Koreas is expanding. 
Even just to deter North Korea's missile threat, the restriction to 
the missile range must be lifted.  Now that Washington has admitted 
the need for revision (Editor's Note: we do not believe this is 
correct), the two sides must promptly begin steps to revise the 
agreement.  The two sides are hoping, at the latest, to come up with 
tangible results at the Security Consultative Meeting scheduled for 
October. 
 
In order to prepare for North Korea's nuclear and missile threats, 
the ROKG will invest 178 trillion won implementing the "mid-term 
National Defense Plan for 2010-2014" starting next year.  The point 
of the plan is to build a system to shield computers and 
telecommunications equipment from electromagnetic waves caused by a 
nuclear explosion and to introduce the Global Hawk unmanned 
high-altitude aircraft.  On top of this, if we can extend our 
missile range to 550 kilometers and put the whole of North Korea 
within striking range, our deterrence against the North will be 
bolstered considerably.  The Joint Vision for the ROK-U.S. Alliance, 
which President Lee Myung-bak and U.S. President Barack Obama agreed 
to at their summit in Washington last month, says, "The Republic of 
Korea will take the lead role in the combined defense of Korea, 
supported by an enduring and capable U.S. military force presence on 
the Korean Peninsula, in the region and beyond."  There is no reason 
to believe that Seoul cannot spearhead missile defense. 
 
The two allies need to further develop their alliance into one that 
aims to attain strategic goals for the Asia-Pacific region and the 
globe, beyond the Korean Peninsula.  To do that, South Korea's 
military capacity must be boosted to a level where it can 
effectively deter North Korea's military threat. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.  As noted, our understanding is 
that General Sharp made no such comments, so the article should be 
read with that caveat.) 
 
 
U.S.-RUSSIA AGREEMENT SHOULD BE THE FIRST STEP TOWARD A 
'NUCLEAR-FREE WORLD' 
(JoongAng Ilbo, July 8, page 42) 
 
The U.S. and Russia, which control 95% of the world's nuclear 
arsenal, agreed to a big framework for reducing additional nuclear 
 
SEOUL 00001081  004 OF 006 
 
 
weapons.  During a July 6 meeting, U.S. President Barack Obama and 
Russian President Dmitry Medvedev signed a memorandum of 
understanding, containing a draft of a replacement pact for the 
Strategic Arms Reduction Treaty- 1 (START-1), which will be 
effective at the end of this year.  The draft calls on the U.S. and 
Russia to limit their arsenal of strategic nuclear warheads to 
between 1,500-1,675 each, and their Intercontinental Ballistic 
Missiles (ICBM) for delivering nuclear bombs to a range of 500 to 
1,100 within seven years. 
 
At present, the U.S. and Russia possess about 2,200 and 2,800 
strategic nuclear warheads, and about 1,190 and 810 strategic 
delivery vehicles, respectively.  If the new agreement is 
implemented, the number of strategic nuclear warheads will be 
significantly reduced to three-fifths the current level and the 
number of the ICBM will be reduced by half until the end of 2016. 
The agreement is a historic landmark in strategic nuclear 
disarmament which began in the 1980s. 
 
There remain some hurdles before the U.S. and Russia sign the final 
agreement.  The most contentious issue between two countries, 
deployment of a U.S. Missile Defense (MD) system in Eastern Europe, 
has yet to be resolved.  During the summit, President Obama 
requested that Russia wait for some time before reviewing this 
issue, but it is unlikely to be settled unless the plan itself is 
rolled back.  There is a possibility that deployment of the MD 
system in Poland and the Czech Republic may hinder the progress of 
the new nuclear reduction agreement.  As it is said that the "devil 
is in the details," verification processes may become a final 
variable.  It is hoped that the two leaders will overcome these 
obstacles, and that their commitment to nuclear reduction will yield 
substantial results within the year. 
 
"A nuclear-free world" is an ideal President Obama openly professed 
in Prague in April.  By reaching an historic agreement with Russian 
President Medvedev on nuclear arms reduction, President Obama made 
it clear that a 'nuclear-free world' is not merely rhetoric but a 
practical goal the human race should pursue.   Five nuclear 
countries under the NPT, the U.S., Russia, China, Britain and 
France, should bear the responsibility for ultimate 
denuclearization.  The U.S. and Russian leaders have come closer to 
fulfilling the obligations required by the Nuclear Non-Proliferation 
Treaty (NPT), thus securing the justification to call on other 
countries to comply with their obligations under the NPT.  This is 
why this agreement must and will be a significant first step toward 
a 'nuclear-free world. 
 
A meeting for reviewing the NPT will be held next year.  If the U.S. 
and Russia sign the final agreement, much more intense pressure will 
be placed not only on NPT members but also countries which have 
sought nuclear development outside of the NPT system.  During the 
meeting, the U.S. and Russia strongly urged North Korea and Iran to 
accept international calls for denuclearization.  North Korea should 
take the U.S. and Russia's historic agreement on nuclear reduction 
seriously.  Denuclearization and non-proliferation are the norm and 
"moral law" of the international community in the 21st century. 
 
 
ROK-U.S. MISSILE GUIDELINES SHOULD BE REVISED TO RESPOND TO N. 
KOREAN MISSILES 
(Chosun Ilbo, July 8, page 35) 
 
During a policy meeting with National Assembly Defense Committee 
advisers in Seoul, a senior official at the ROK-U.S. Combined Forces 
Command (CFC) said that if the ROK wants to revise the ROK-U.S. 
missile guidelines, the two sides could discuss the issue, possibly 
at their annual Security Consultative Meeting (SCM).  The ROK-U.S. 
missile guidelines deal with mutual cooperation in missiles, but at 
the same time restricts the range of ROK missiles.  When signed in 
the 1970s, the guidelines restricted the ROK's missile capacity to a 
180 kilometer range and with a 500 kilogram payload.  In 2001, the 
missile pact was renegotiated to extend the permitted range of 
missiles to 300 kilometers. 
 
 
SEOUL 00001081  005 OF 006 
 
 
While the guidelines have hampered the ROK from enhancing its 
missile capabilities, North Korea has emerged as a missile power. 
In the early 1980s, North Korea began to manufacture Scud missiles 
and successfully deployed 600 Scud B's with a range of 300km and 
Scud C's with a range of 500km, and 200 Rodong missiles with a range 
of 1,300km.  Considering that the long-range rocket, which North 
Korea launched on April 5, traveled 3,200km, there is a high 
possibility that North Korea will possess Intercontinental Ballistic 
Missiles (ICBM) soon. 
 
Five of the seven Scud and Rodong missiles that the North fired on 
July 4 traveled 420 kilometers and splashed into a targeted area in 
the East Sea (Sea of Japan).  The accuracy of the four KN 
short-range missiles launched on July 2 was found to have improved 
considerably as well.  North Korea now has the capability to hit 
accurately a target in all of the ROK and Japan.  On the contrary, 
the ranges of the ROK's Hyunmoo I and II and ATACMS missiles are too 
short to target major military facilities throughout North Korea. 
Military experts say that only when a ballistic missile has a range 
of more than 700 kilometers can it hit any target in North Korea 
from the rear areas of the ROK. 
 
ROK-U.S. missile guidelines provide that "(the Agreement) shall be 
revised when security conditions change."  North Korea conducted two 
nuclear tests and dramatically improved its missile range and 
accuracy.  This suggests that security conditions have fundamentally 
changed. 
 
The U.S. is adhering to its position that it will transfer wartime 
operational control to the ROK in April, 2012, as scheduled.  With 
the shift of wartime operational command drawing nearer, the ROK and 
the U.S. should swiftly find ways to correct an imbalance between 
missile capabilities of the ROK and the North, starting from a 
revision of the missile guidelines.  The ROK's survival depends on 
whether the ROK is equipped with the capability to counter a North 
Korean missile. 
 
 
FEATURES 
-------- 
 
FOCUS IS ON WHETHER THE ROK WILL BE ALLOWED TO PRODUCE ITS OWN 
LOW-ENRICHED URANIUM 
(Dong-a Ilbo, July 8, 2009, Page 8) 
 
By Reporter Kim Young-sik 
 
Seoul plans to talk with the U.S. around October to revise the 
Atomic Energy Agreement. 
 
The ROKG reportedly plans to begin talks to revise the Atomic Energy 
Agreement with the U.S. as early as October and seek U.S. agreement 
on the ROK's self-production of low-enriched uranium and 
reprocessing of spent fuel rods. 
 
An ROKG official stressed on July 7 that this move is for economic 
reasons, saying, "We will revise the ROK-U.S. Atomic Energy 
Agreement so that the ROK, the world's sixth-largest country in 
terms of nuclear power generation, can expand the use of atomic 
energy and should not have difficulty exporting (the energy.)"  He 
added, "If we are allowed to enrich uranium-235 to 2-5 percent, it 
will also be helpful to our nuclear energy exports.  I am not saying 
that only enrichment and reprocessing are the goals of negotiations, 
but ultimately, there should be no problem in Korea becoming an 
atomic energy power." 
 
In particular, the ROKG will reportedly persuade the U.S. that 
"pyro-processing," which the ROK has studied to reprocess spent 
nuclear fuel, is a fuel recycling, not reprocessing, measure.  Cho 
Hyun, Ambassador for Energy and Resources at the Ministry of Foreign 
Affairs and Trade, who heads the ROK delegation to the negotiations 
over the revision of the ROK-U.S. Atomic Energy Agreement, said on 
July 7, "We have decided to have negotiations with the U.S. to 
revise the Atomic Energy Agreement within this year.  The talks will 
 
SEOUL 00001081  006 OF 006 
 
 
begin in October or November."  The ROK and the U.S. have agreed to 
negotiate for a revision of the ROK-U.S. Atomic Energy Agreement, 
which expires in March, 2014. 
 
 
STEPHENS