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UNCLAS SECTION 01 OF 05 SEOUL 001264 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 11, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
Hyundai Group Chairwoman Likely to Meet Kim Jong-il Today 
 
JoongAng Ilbo 
Strategy and Finance Minister Denies 
Expansion of Real Estate Restrictions 
 
Dong-a Ilbo 
Daegu, Osong Picked for High-tech Medical Complexes 
 
Hankook Ilbo, Seoul Shinmun 
Possibility that Hyundai Group Chief May Return with Hyundai Asan 
Employee Detained in N. Korea, after Meeting 
with N. Korean Leader Kim Jong-il 
 
Hankyoreh Shinmun 
Sharp Surge in Stock and Real Estate Markets Feared to Deepen 
Economic Polarization in ROK 
 
Segye Ilbo 
Diplomatic Source in Seoul: "U.S., N. Korea 
to Resume Bilateral Talks Sooner or Later" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Hyundai Group Chairwoman Hyun Jung-eun arrived in Pyongyang 
yesterday afternoon as a "de facto special envoy" for the ROKG to 
win the release of an ROK employee who has been held incommunicado 
in North Korea for 134 days. (All) 
 
A senior ROKG official was quoted as saying: "Chairwoman Hyun is 
expected to meet North Korean leader Kim Jong-il on August 11. There 
is a possibility that they may discuss pending issues, including the 
resumption of tours to Mt. Kumgang and ways to maintain and develop 
the joint Kaesong Industrial Complex, in addition to the release of 
the Hyundai Asan worker." (Chosun) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
According to a diplomatic source in Seoul, the U.S. conveyed to 
North Korea what steps the North should take to resume talks (with 
the U.S.) This was done via the New York channel between the two 
countries and the recent visit to Pyongyang by former President Bill 
Clinton. The source went on to say: "Since North Korea responded 
positively, it seems that U.S.-North Korea talks will take place 
sooner or later." (Segye) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
----------- 
Conservative Segye Ilbo ran a front-page report that cited a 
diplomatic source in Seoul as saying yesterday that the U.S. 
conveyed to North Korea what steps the North should take to resume 
talks (with the U.S.) This was done via the New York channel between 
the two countries and through the recent visit to Pyongyang by 
former President Bill Clinton.  The source was further quoted: 
"Since North Korea responded positively, it seems that U.S.-North 
Korea talks will take place sooner or later." 
 
The Segye Ilbo report also quoted the U.S. Ambassador to the UN 
Susan Rice as urging North Korea during her August 9 CNN interview 
to uphold its international obligations and resume international 
 
SEOUL 00001264  002 OF 005 
 
 
negotiations (Six-Party Talks), saying: "In that context, we have 
said that we would be prepared to have a direct dialogue." 
 
Right-of-center  JoongAng Ilbo, meanwhile, headlined its inside-page 
article: "Washington Has Changed since Former President Clinton's N. 
Korea Visit."  The article noted that chances are growing that 
former President Clinton's surprise visit to North Korea may provide 
momentum to improve relations between the two countries.  The 
article quoted Secretary of State Hillary Clinton as saying during 
an August 9 CNN interview: "What we're hoping is ... (that former 
President Clinton's visit) will perhaps lead the North Koreans to 
recognize that they can have a positive relationship with us." 
White House National Security Adviser James Jones was also quoted as 
saying: "North Korean leader Kim Jong-il appeared to be in control 
of his government and sounded very reasoned.  He seemed in control 
of his faculties." 
 
All ROK media gave prominent play to Hyundai Group Chairwoman Hyun 
Jung-eun's arrival in Pyongyang yesterday afternoon as a "de facto 
special envoy" for the ROKG to win the release of an ROK employee 
who has been held incommunicado in North Korea for 134 days. 
 
Conservative Chosun Ilbo quoted a senior ROKG official as saying: 
"Chairwoman Hyun is expected to meet North Korean leader Kim Jong-il 
on August 11.  There is a possibility that they may discuss pending 
issues, including the resumption of tours to Mt. Kumgang and ways to 
maintain and develop the joint Kaesong Industrial Complex, in 
addition to the release of the Hyundai Asan worker."  Chosun also 
speculated that since inter-Korean governmental talks have been 
suspended, North Korean leader Kim may deliver a message to the ROK 
through Hyun. 
 
Right-of-center JoongAng Ilbo editorialized: "North Korea may have 
felt that its continued detention of the ROK worker would put 
obstacles in the way of improving relations with the U.S., following 
its release of two U.S. journalists. ... The problem is that North 
Korea will show a conciliatory attitude toward improving general 
inter-Korean ties. ... The resumption of tours to Mt. Kumgang means 
that cash will flow into the North.  This could run counter to 
international sanctions to punish the North's nuclear test. ... It 
is time for the two Koreas to take a more forward-looking and 
broader approach toward each other. ... The ROKG should do its 
utmost to maintain this favorable inter-Korean atmosphere created by 
Chairwoman Hyun's visit, especially given the signs of a thaw in 
U.S.-North Korea relations following former President Clinton's 
visit to North Korea." 
 
Moderate Hankook Ilbo observed in an editorial: "It is very 
encouraging that North Korea allowed Chairwoman Hyun an overland 
trip to Pyongyang.  (The overland route was recently open to only 
certain figures, including the late former President Roh Moo-hyun 
for the second inter-Korean summit in 2007.) ...  It would be highly 
problematic if North Korea intends to limitedly improve relations 
with the ROK in order to circumvent UN Security Council Resolution 
¶1874.  Improvements in inter-Korean relations should be made in 
tandem with North Korea's return to the nuclear disarmament talks." 
 
 
OPINIONS/EDITORIALS 
 
HOPING THAT HYUN'S N. KOREA VISIT LEADS TO CHANGE IN INTER-KOREAN 
RELATIONS 
(Hankyoreh Shinmun, August 11, 2009, page 31) 
 
Hyundai Group Chairwoman Hyun Jung-eun arrived in Pyongyang 
yesterday to negotiate the release of a Hyundai Asan employee, who 
has been held incommunicado in North Korea.  This is welcome news 
because inter-Korean talks have been deadlocked.  We expect that her 
visit to Pyongyang will mark a momentous turning point in the 
deteriorating inter-Korean relations. 
 
First of all, North Korea should make up its mind to release the ROK 
employee.  As former U.S. President Bill Clinton returned with two 
U.S. journalists after his visit to North Korea, we expect 
 
SEOUL 00001264  003 OF 005 
 
 
Chairwoman Hyun will bring the ROK worker along with her when she 
returns.  Even if the ROK and North Korea are severely at odds with 
each other, North Korean authorities should not hold an ROK civilian 
hostage.  Some observers say that Hyun's visit comes at a time when 
North Korea is showing active interest (in engagement).  We hope 
that this is true and Hyun's visit will serve as an opportunity to 
resume the suspended tours to Mt. Kumgang, and restart key 
inter-Korean economic cooperation such as the troubled joint Kaesong 
Industrial Complex project. 
 
The ROKG should also not miss this opportunity.  The ROKG cautioned 
against stretching the meaning of Chairman Hyun's visit, saying that 
her visit is just for a business purpose.  We want to see this 
simply as part of Seoul's strategy not to publicize its back-channel 
efforts.  However, compared to the Clinton visit, the ROKG's role in 
achieving Chairwoman Hyun's visit appeared to be very small.  We 
even suspect that the ROKG is trying to pass responsibility for 
resolving the situation to Hyundai, which is suffering from the 
suspension of inter-Korean cooperation projects.  Hyundai may 
inevitably have to be at the forefront of inter-Korean dialogue, but 
in the end, it is the ROKG that should resolve issues with the 
North.  In this context, the statement by a high-ranking ROKG 
official that "since it is an issue involving Hyundai Asan, Hyundai 
Asan should take responsibility," is highly disappointing. 
 
The Clinton visit is showing signs of bringing big changes to the 
situation on the Korean Peninsula.  There are also some U.S. media 
reports that the Obama Administration is shifting the focus of its 
North Korea policy from nuclear dismantlement to nuclear 
containment.  If we only adhere steadfastly to our stance and refuse 
to budge an inch in a self-righteous way, all the efforts that we 
have made so far (toward better cross-border ties) could go up in 
smoke.   We have already been taken aback by Clinton's visit.  We 
hope that the ROKG will take a more active stance in efforts to 
break the deadlock in inter-Korean relations. 
 
 
FEATURES 
-------- 
 
WASHINGTON HAS CHANGED SINCE FORMER PRESIDENT CLINTON'S NORTH KOREA 
VISIT 
(JoongAng Ilbo, August 11, 2009, Page 4) 
 
By Washington Correspondent Kim Jung-wook and Reporter Ye 
Young-joon 
 
Secretary of State Clinton: "We hope (the Clinton visit) will lead 
to a positive relationship between the U.S. and North Korea" 
 
National Security Adviser Jones: "Kim sounded very reasoned" 
 
Chances are growing that former U.S. President Bill Clinton's 
surprise visit may serve as  momentum to improve U.S.-North Korea 
relations, which have been strained due to the North Korean nuclear 
issue.  The USG repeatedly argued that the Clinton visit was a 
private humanitarian mission aimed at winning the release of the two 
U.S. female journalists detained in the North.  However, less than a 
week after the former President returned home, high-ranking 
officials are saying that the visit might lead to an improvement in 
U.S.-North Korea relations. 
 
U.S. Secretary of State Hillary Clinton said during an August 9 
(local time) interview with CNN, "We have no designs on North 
Korea," adding, "So, we reached out to the North Koreans and made it 
very clear that we wanted to create that kind of engagement."  After 
expressing concern about the possibility of the North exporting 
nuclear technology, she noted that the Clinton visit "will perhaps 
lead the North Koreans to recognize that they can have a positive 
relationship with us." 
 
White House National Security Adviser James Jones, who met with 
former President Clinton before Clinton's possible briefing to 
President Obama this week, hinted that the significance of the 
 
SEOUL 00001264  004 OF 005 
 
 
Kim-Clinton meeting goes beyond the release of the journalists. 
Appearing on CBS and NBC on August 9, Mr. Jones stated that dialogue 
between the two was carried out in a mutually respectful and sincere 
atmosphere, adding, "The North Koreans have indicated that they 
would like a better relation with the U.S."  He also noted, "Mr. Kim 
appeared to be in control of his government and sounded very 
reasoned."  Diplomatic circles in Washington said that it was 
unusual for Mr. Jones, a cautious person who retired as a four-star 
general, to publicly make the statements ahead of a briefing to the 
President.  Particularly regarding the description of North Korean 
leader Kim Jong-il, there is a sharp departure from the Bush 
Administration, which described Kim as being "unpredictable and 
uncontrollable." 
 
Some observers caution against reading too much into the Clinton-Kim 
meeting.  A high-ranking ROK foreign ministry official said, "A 
message continuously coming out of the U.S. is that the Clinton 
visit has no political and diplomatic meaning.  Many people say that 
the meeting could likely bring change, but personally, I do not 
think that the meeting will have much impact." 
 
The Obama Administration, however, keeps its doors open to 
negotiations with the North, and the atmosphere in Washington is 
also changing.  The U.S. Department of State is reportedly using the 
North Korean mission to the U.N. in New York to make progress in the 
nuclear negotiations, and at the same time, it is considering 
expanding contact with the North by inviting North Korean officials 
through private institutes, such as the National Committee on 
American Foreign Policy and the Center for Strategic and 
International Studies.  In addition, a high-ranking diplomatic 
source in Washington said that at last week's meeting in Hawaii, ROK 
Chief Negotiator to the Six-Party Talks Wi Sung-lac and his U.S. 
counterpart Sung Kim discussed how to deal with the North when the 
nuclear negotiations, including the Six-Party Talks, resume. 
 
 
"U.S.-NORTH KOREA TALKS WILL RESUME SOONER OR LATER" 
(Segye Ilbo, August 11, 2009, Front page) 
 
By Reporter Lee Sang-min 
 
The U.S. delivered its preconditions for resuming talks with North 
Korea and the North responded positively. 
 
A diplomatic source (in Seoul) says that North Korea only has to 
make a strategic choice. 
 
The U.S. and North Korea reportedly agreed, to some extent, that the 
two sides will resume (bilateral) talks on the North Korean nuclear 
issue under preconditions (set out by the U.S.) 
 
U.S.-North Korea talks, which will be similar to the "Berlin Talks" 
held between former Assistant Secretary of State for East Asian and 
Pacific Affairs Christopher Hill and North Korean Vice Foreign 
Minister Kim Kye-gwan, are likely to take place in order to put the 
Six-Party Talks back on track. 
 
A diplomatic source in Seoul said on August 10 that the U.S. 
conveyed to North Korea what steps the North should take to resume 
talks (with the U.S.)  This was done via the New York channel 
between the two countries and through the recent visit to Pyongyang 
by former President Bill Clinton.  The source was further quoted: 
"Since North Korea responded positively, it seems that U.S.-North 
Korea talks will take place sooner or later." 
 
The U.S. has maintained its position that it will restart bilateral 
talks with North Korea if Pyongyang takes action to correct its 
"wrong behavior," which has been evident by long-range rocket 
launches, suspending the dismantlement of its Yongbyon nuclear 
facilities, and a second nuclear test. 
 
The source said that the U.S. explained to North Korea in detail 
what the North will gain and that the U.S. has been fully prepared 
(to provide the gains.)  The source went on to say that North Korea 
 
SEOUL 00001264  005 OF 005 
 
 
only has to make a strategic choice. 
 
In this regard, the U.S. Ambassador to the UN Susan Rice urged North 
Korea during her August 9 CNN interview to uphold its international 
obligations and resume international negotiations (Six-Party Talks), 
saying: "In that context, we have said that we would be prepared to 
have a direct dialogue." 
 
A high-ranking Foreign Ministry official said during a closed 
briefing the same day that following the release of two U.S. 
journalists by North Korea, many people paid attention to the U.S.' 
softer stance on North Korea.  The official noted, however, that 
attention should turn to what steps the North will take. 
 
Another diplomatic source in Seoul said that two scenarios have been 
raised under the precondition that North Korea will halt steps to 
reverse disablement of the Yongbyon nuclear facilities.  Under the 
first one, U.S.-North Korea will hold bilateral talks in a third 
country and under the second one, Special Representative for North 
Korea Policy Stephen Bosworth will visit North Korea. 
 
 
STEPHENS