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UNCLAS SECTION 01 OF 03 SEOUL 001126 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; July 16, 2009 
 
C O R R E C T E D COPY - This telegram replaces Seoul 01125, same 
date. 
 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Seoul Shinmun 
Sweeping Blue House and Cabinet Reshuffle Expected 
Next Month 
 
JoongAng Ilbo 
As Economic Skies Clear, Major ROK Conglomerates 
Plan to Invest 
 
Dong-a Ilbo 
"MBnomics" Lost in a "Maze of Tax" 
President Lee's Economic Team Locked in Dispute 
over Tax Cuts 
 
Hankook Ilbo 
Nomination Debacle Puts Lee Myung-bak Administration's Vetting 
System under Close Scrutiny 
 
Hankyoreh Shinmun 
Traditional Markets Rapidly Losing Business 
to Large Retail Supermarkets 
 
Segye Ilbo, All TVs 
Ruling and Opposition Lawmakers Occupy 
National Assembly's Main Chamber, Bracing for Showdown 
over Contentious Media Reform Bill 
 
 
DOMESTIC DEVELOPMENTS 
---------------------- 
 
USFK Commander Gen. Walter Sharp, in a July 14 press conference in 
New York, said that there is no immediate need to bolster the ROK's 
missile range. He was quoted: "There has been no request (from the 
ROKG) to do that and I really don't see a need for that right now." 
(JoongAng, Hankook, Seoul) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
 
State Department Spokesman Ian Kelly, in a July 13 briefing, said 
that sanctions against North Korea will be on the agenda at the 
annual ASEAN Regional Forum in Thailand July 22-23. (Chosun, 
Hankyoreh, Segye, all TVs) 
 
In a related development, according to a diplomatic source in 
Washington, Pyongyang will send an ambassador-at-large, instead of 
Foreign Minister Pak Ui-chun, to the regional security forum. 
(Chosun, Seoul) 
 
 
MEDIA ANALYSIS 
------------- 
 
-North N. Korea 
--------------- 
Most ROK TV networks quoted the president of North Korea's Presidium 
of the Supreme People's Assembly and the country's No. 2 leader, Kim 
Yong-nam, as arguing at the Non-Aligned Movement summit of 118 
nations: "The (Six-Party) Talks came to a permanent end because the 
U.S. and its allies abandoned the principles of respect for 
sovereign rights and equality.  In this situation, (North Korea) had 
no other choice but to take decisive measures to further strengthen 
its nuclear deterrence." 
 
Most ROK media noted July 13 press remarks by State Department 
 
SEOUL 00001126  002 OF 003 
 
 
Spokesman Ian Kelly, quoting him as saying that sanctions against 
North Korea will be on the agenda in Thailand at the annual ASEAN 
Regional Forum July 22-23, in which Secretary of State Hillary 
Clinton will participate. 
 
In a related development, conservative Chosun Ilbo and moderate 
Seoul Shinmun reported that Pyongyang will send an 
ambassador-at-large to the regional security forum, instead of 
Foreign Minister Pak Ui-chun.  A diplomatic source in Washington was 
quoted: "If the situation was in its favor, North Korea would 
usually send its foreign minister to the ARF sessions, but if not, 
it would send lower-ranking officials." 
 
Conservative Chosun Ilbo and Segye Ilbo gave attention to a July 14 
debate session at the Cato Institute in Washington on China's role 
in resolving North Korean issues, in which Larry Niksch, a senior 
researcher at the U.S. Congressional Research Service (CRS), claimed 
that North Korea earns more than $2 billion per year from arms deals 
with Iran.  He was further quoted: "In order to implement effective 
sanctions against North Korea, China must block flights between 
Pyongyang and Tehran in addition to financial sanctions (against the 
communist state.)" 
 
 
FEATURES 
-------- 
 
U.S. KOREAN PENINSULA POLICY LED BY "OBAMA-CLINTON LINE" 
(JoongAng Ilbo, July 16, 2009, page 2) 
 
By Correspondent Kim Jeong-uk 
 
The "central axis" of the Obama Administration's Korean Peninsula 
policy line has shifted.  Those who were assigned to key positions 
in the U.S. Department of State or engaged in negotiations with 
North Korea during the Bush Administration have been sidelined. 
Instead, the U.S.' Korea Peninsula policy is being led by those from 
the "Obama-Clinton line," who have been appointed since the Obama 
Administration took office. 
 
A Washington diplomatic source said on July 14 (local time) that the 
Department of State will soon replace Kurt Tong, who was appointed 
as Director of the Office of Korean Affairs at the State Department 
by the Bush Administration last August. Tong, who has been in charge 
of Korean Peninsula affairs, served as Director for Asian Economic 
Affairs at the National Security Council (NSC) during the Bush 
Administration and was involved in signing the Korea-U.S. Free Trade 
Agreement (KORUS FTA).  Since regular personnel changes by the State 
Department generally occur every two years, his replacement is 
considered unusual. 
 
Reportedly, Tong will advance to the position of Asia-Pacific 
Economic Cooperation Ambassador (deputy assistant secretary-level) 
and his successor will be one experienced in political affairs. 
This means a reshuffle of the State Department's Korean Peninsula 
policy line, from the position of Assistant Secretary of State for 
East Asian and Pacific Affairs, which was assigned to Kurt Campbell, 
who has been officially working since being confirmed by the Senate, 
to the position in charge of Korean Peninsula affairs.  Also, 
Special Representative for North Korea Policy Stephen Bosworth and 
Special Envoy for the Six-Party Talks Sung Kim are responsible for 
the Obama Administration's Korean Peninsula policy. 
 
A diplomatic source knowledgeable about the situation at the 
Department of State said on July 14, "At present, Deputy Secretary 
James Steinberg is in full charge of Korean Peninsula issues, and 
Assistant Secretary Campbell is making his voice heard.  Due to 
North Korea's repeated provocations, however, the roles of Special 
Representative for North Korea Policy Stephen Bosworth and Special 
Envoy for the Six-Party Talks Sung Kim, who are both in charge of 
negotiations with North Korea, are reducing." 
 
Deputy Secretary Steinberg, who had served as Deputy National 
Security Advisor to President Bill Clinton, led a delegation with 
 
SEOUL 00001126  003 OF 003 
 
 
Special Representative Bosworth to China last month after the 
adoption of UN Security Council Resolution 1847 imposing sanctions 
on North Korea and asked the international community for a "strong 
and unified response."  Assistant Secretary Campbell, who was in 
charge of the Clinton camp's Asia policy during last year's 
presidential campaign, plans to visit the ROK on July 18 for the 
first time since assuming office and will coordinate stances with 
other nations on a response to North Korea. 
 
The source in Washington noted, "Steinberg or Campbell is not the 
person who rejects active diplomatic negotiations with North Korea, 
but considering that they cannot compromise on the denuclearization 
of the Korean Peninsula, they are likely to maintain a pressure 
policy on North Korea for the time being." 
 
 
 
STEPHENS