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UNCLAS SECTION 01 OF 06 SEOUL 001284 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 13, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo 
Ruling and Opposition Parties Call for Korean Teachers and Education 
Workers Union to Accept Teacher Evaluation System 
 
JoongAng Ilbo 
¶N. Korea: "Significant Progress will Soon be Made 
in Relations with U.S." 
 
Dong-a Ilbo 
State-run "Foundation for Broadcast Culture" Issues 
2008 Management Assessment Report for MBC TV 
 
Hankook Ilbo 
Hyundai Chairwoman Seems to Have Met N. Korean Leader Kim Jong-il; 
She will Return to Seoul Today as Scheduled 
 
Hankyoreh Shinmun 
Defense Security Command, the Military's Internal Security 
Organization, Suspected of Illegal Inspections of Civilians 
 
Segye Ilbo 
Government Employees Pension Service 
Accused of Lax Management 
 
Seoul Shinmun 
Hyundai Chief Appears to Have Failed to Meet Kim Jong-il 
 
 
DOMESTIC DEVELOPMENTS 
---------------------- 
 
Hyundai Group Chairwoman Hyun Jung-eun, who crossed the inter-Korean 
border on August 10 to win the release of a detained Hyundai Asan 
employee, again failed to meet with North Korean leader Kim Jong-il 
yesterday. There is speculation that the Hyundai chairwoman will 
meet with the North Korean leader today, the day she is scheduled to 
return to Seoul. (Chosun, JoongAng, Dong-a, Hankyoreh, Segye, Seoul, 
all TVs) 
 
But according to a source familiar with North Korean affairs, 
Hyundai Chairwoman Hyun appeared to have met with North Korean 
leader Kim Jong-il yesterday evening, after he returned to Pyongyang 
from his inspection of a naval academy in the northern town of 
Hamheung. (Hankook) 
 
Michael Schiffer, the Deputy Assistant Secretary of Defense for East 
Asia, in an August 11 interview, said that the USG has no plan to 
adjust the size of USFK. (Chosun) 
 
U.S. Ambassador to the ROK Kathleen Stephens consoled Lee Hee-ho, 
wife of former President Kim Dae-jung, during her visit to Yonsei 
University's Severance Hospital yesterday, where Kim has been 
hospitalized. (JoongAng, Dong-a, Hankook, all TVs, Nocut News) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
On August 11, the U.S. Treasury Department imposed financial 
sanctions on another North Korean bank, the Korea Kwangson Banking 
Corp (KKBC), for providing financial services to companies that have 
already been sanctioned under UN resolutions for proliferating 
weapons of mass destruction. (All) 
 
According to a diplomatic source in Washington, Kim Yong-il, North 
Korea's Deputy Foreign Minister, said during his August 10 visit to 
Mongolia that significant progress will soon be made in North 
Korea-U.S. relations. (JoongAng, Segye, KBS) 
 
 
SEOUL 00001284  002 OF 006 
 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
All ROK media gave front-and inside-page play to the U.S. Treasury 
Department's August 11 imposition of financial sanctions on another 
North Korean bank, the Korea Kwangson Banking Corp (KKBC), for 
providing financial services to companies that have already been 
sanctioned under UN resolutions for proliferating weapons of mass 
destruction. 
 
Most ROK media interpreted this move as confirming that Washington's 
North Korea policy remains unchanged following former President Bill 
Clinton's visit to North Korea.  In particular, conservative Chosun 
Ilbo, in an editorial titled "U.S. Does Not Relax Sanctions on N. 
Korea," observed: "The Obama Administration has demonstrated at home 
and abroad that former President Clinton's 'humanitarian, private 
visit to North Korea' has nothing to do with the North Korean 
nuclear issue and that its North Korea policy remains unchanged." 
 
Citing a diplomatic source in Washington, right-of-center JoongAng 
Ilbo, conservative Segye Ilbo and state-run KBS quoted Kim Yong-il, 
North Korea's Deputy Foreign Minister as saying during his August 10 
visit to Mongolia that significant progress will soon be made in 
North Korea-U.S. relations. 
 
Most ROK media reported that Hyundai Group Chairwoman Hyun Jung-eun, 
who crossed the inter-Korean border on August 10 to win the release 
of a detained Hyundai Asan employee, again failed to meet with North 
Korean leader Kim Jong-il yesterday.  According to media reports, 
however, there is speculation that the Hyundai chairwoman will meet 
with the North Korean leader today, the day she is scheduled to 
return to Seoul. 
 
Moderate Hankook Ilbo, meanwhile, cited a source familiar with North 
Korean affairs as saying yesterday that Hyundai Chairwoman Hyun 
appeared already to have met with North Korean leader Kim Jong-il 
yesterday evening, after the North Korean leader returned to 
Pyongyang from his inspection of a naval academy in the northern 
town of Hamheung.  According to Hankook Ilbo, the source went on say 
that Hyun and Kim focused their discussion on the release of the 
detained ROK worker and that the worker may be released today. 
 
Most newspapers, citing North Korea observers, commented that it is 
typical for Kim to play "hard-to-get" in order to dramatize his 
availability for a meeting.  The newspapers, citing precedent, went 
on to point out that the North Korean leader only plays this game 
with ROK officials while sticking to pre-arranged schedules when 
meeting visitors from the U.S. and China. 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
"INTERNATIONAL SANCTIONS SHOULD STRENGTHEN AGAINST MYANMAR, THE 
WORLD'S WORST HUMAN RIGHTS OFFENDER" 
(JoongAng Ilbo, August 13, 2009, page 38) 
 
 "The ruling military junta's intentions are obvious:  It intends to 
restrain Ms. Suu Kyi from influencing the planned general elections 
next year. ... The fact that the military junta has gone this far 
despite international criticism demonstrates the ineffectiveness of 
international responses. ... It is also problematic that the 
international community has failed to speak with one voice.  The UN 
Security Council, faced with opposition from China and Russia, has 
never passed a resolution against the country.  Myanmar, along with 
North Korea, is ranked among the world's worst human rights 
violators.  It is a well-known fact that some 2,000 political 
prisoners remain incarcerated in the country.  The international 
community should be united at this time and enhance sanctions 
against Myanmar." 
 
 
SEOUL 00001284  003 OF 006 
 
 
 
U.S. DOES NOT RELAX SANCTIONS ON N. KOREA 
(Chosun Ilbo, August 13, 2009, page 31) 
 
The U.S. Treasury Department added Korea Kwangson Banking 
Corporation (KKBC) to a list of North Korean firms subject to 
sanctions Tuesday.  Separate from UN Security Council sanctions, the 
U.S. government already designated Tanchon Commercial Bank and Korea 
Mining Development Trading for financial sanctions. 
 
Using Resolution 1874, the UN Security Council last month 
blacklisted Namchongang Trading, , Korea Tangun Trading, the General 
Bureau of Atomic Energy, and Korea Hyoksin Trading and its parent 
company Korea Ryongbong General. 
 
KKBC has a branch in Dandong on the Chinese border and it is 
suspected of being one of the channels through which North Korean 
leader Kim Jong-il manages to amass a slush fund.  The Treasury said 
KKBC was added to the list because the bank was financially linked 
to Tanchon Commercial Bank, Korea Hyoksin Trading, Korea Ryongbong 
General and other entities. 
 
The addition comes just a week after former U.S. President Bill 
Clinton won the freedom of two U.S. journalists with a visit to 
North Korea.  There had been speculation that the visit would mean a 
change in U.S.-North Korean relations, including the lifting of 
sanctions and the start of bilateral talks.  But the Obama 
Administration has demonstrated at home and abroad that former 
President Clinton's 'humanitarian, private visit to North Korea' has 
nothing to do with the North Korean nuclear issue and that its North 
Korea policy remains unchanged. 
 
The U.S. added KKBC to the blacklist immediately after explaining to 
the ROK and the other countries involved in Six-Party Talks that it 
saw no change in North Korea's attitude over the nuclear issue.  It 
is fortunate that the U.S. reaffirmed that it will not pursue 
changes in relations with North Korea without first consulting with 
the countries involved in the nuclear dismantlement talks.  But it 
is frustrating that North Korea refuses to budge. 
 
The U.S. government has been pursuing a two-track approach in 
dealing with North Korea by maintaining sanctions while sending 
signals that the door is always open for dialogue if North Korea 
takes steps to irreversibly dismantle its nuclear weapons program. 
The U.S. even intends to offer a "comprehensive package" of benefits 
that includes establishing diplomatic ties. 
 
But Kim Jong-il, in the meeting with Clinton, reportedly repeated 
his old mantra that the U.S. government must halt its "hostile 
policies" against the North first.  The U.S. government has said on 
many occasions that it has no intention of invading North Korea. 
The North's victim mentality has led it to develop nuclear weapons, 
and as long as it remains trapped in this mode of 
self-contradiction, the present stalemate will continue. 
 
The ROK has no choice but to join in on international sanctions 
against North Korea until the North changes its stance.  But Seoul 
must also strive for stability in inter-Korean relations by 
continuing projects that are unrelated to the nuclear issue, such as 
humanitarian cooperation and business collaboration at the Kaesong 
Industrial Complex. 
 
 
FEATURES 
-------- 
 
AUSSIE BEEF OUTSTRIPS U.S. 
(JoongAng Daily, August 13, 2009) 
 
By Reporter Kim Young-hoon 
 
It might taste good, but U.S. beef is losing out in the meat wars to 
the Land Down Under.  Imports of Australian beef far outstrip its 
U.S. counterpart in terms of quantity. 
 
SEOUL 00001284  004 OF 006 
 
 
 
In the first six months of this year, Korea imported 60,289 tons of 
beef from Australia, the Korea Customs Service said yesterday. 
 
The amount of beef imported from the United States during the same 
period was 23,970 tons, 40 percent less than its main competitor in 
the Korean market. 
 
U.S. beef imports started up again last year despite massive public 
demonstrations over the possibility of contracting mad cow disease 
from U.S. beef. 
 
Those fears appear to be affecting the sales of U.S. imported beef 
in the local market.  In the final quarter of last year 18,507 tons 
of beef were imported from the U.S.  In the second quarter of this 
year the amount was 11,689 tons. 
 
"The quality of U.S. beef is good but mistrust over U.S. beef that 
began last year persists," said Park Chang-gyu, head of A-Meat, a 
U.S. beef importer.  "The consumption of U.S. beef is relatively 
lower among the younger generation." 
 
Lee Koo, an official with Meat and Livestock Australia Korea, said: 
"Australian beef is gaining in popularity because it is produced 
according to the preference of customers in each country.  And more 
than 95 percent of major hotels use Australian beef." 
 
 
"THERE IS NO PLAN TO READJUST LEVEL OF USFK TROOPS" 
(Chosun Ilbo, August 13, 2009, page 3) 
 
By Washington correspondent Lee Ha-won 
 
Michael Schiffer, the Deputy Assistant Secretary of Defense for East 
Asian Affairs, explained on August 11 that as the U.S. government 
promised, there is no plan to readjust the level of USFK troops. 
Considering the current national security environment, it would be 
better that the USFK stay in the ROK at a strong level. 
 
Deputy Assistant Secretary Schiffer said in an interview with Chosun 
Ilbo, "North Korea has been conducting a number of provocative 
actions for the last six months.  This is one area of significant 
concern for us." 
 
In relation to the 'extended deterrence' which was announced in the 
ROK-U.S. summit talks in June 2009, Schiffer noted that, "it is not 
the first time that the U.S. promised extended deterrence (to the 
ROK); even so, it delivers a strong message to North Korea.  This 
promises to enhance national security a number of ways, including a 
nuclear umbrella as well as other means." 
 
Deputy Assistant Secretary Schiffer expected that the ROK will 
secure stronger defense capabilities by 2012, at which time the 
wartime transition of operational control (OPCON) will take place. 
In relation to the deactivation of the CFC due to the OPCON 
transition, he said, "Now it is time to go forward with a new 
ROK-U.S. relationship of better dimensions.  Even after OPCON 
transition, the U.S. promise to defend the ROK will not be 
changed." 
 
However, in relation to the controversy that the ROK-U.S. missile 
treaty should be revised in preparations against North Korean 
weapons of mass destruction, Schiffer instead explained that "the 
U.S. stipulated the offer of extended deterrence in order to deter 
the military strength of North Korea.  This offers a vast range of 
fields." 
 
Deputy Assistant Secretary Schiffer was formerly a program officer 
in Policy Analysis and Dialogue at the Stanley Foundation, a U.S. 
think tank.  Currently, he is in charge of policies for East Asian 
countries, including the ROK, China, Japan and North Korea, in the 
Department of Defense. 
 
 
 
SEOUL 00001284  005 OF 006 
 
 
US ADDITIONALLY BLACKLISTED N. KOREAN BANK 
(Chosun Ilbo, August 13, 2009, pages 1 and 3) 
 
By Washington correspondent Lee Ha-won 
 
The U.S. Treasury Department designated Korea Kwangson Banking 
Corporation as an additional target of financial sanctions.  The 
measure came one week after former U.S. President Bill Clinton 
visited North Korea on August 4 and met with leader Kim Jong-il. 
The measure shows that the Obama Administration has not changed its 
policies against the North since the former president's visit to 
North Korea. 
 
According to the Treasury Department, the bank is accused of 
providing services to Tanchon Commercial Bank and Korea Hyoksin 
Trading Corporation, which were blacklisted for the proliferation of 
weapons of mass destruction.  Therefore, the Department blacklisted 
Korea Kwangson Banking Corporation through U.S. Executive Order 
¶13382. 
 
In relation to the bank, which has branch offices in various parts 
of the world including Dandong in China, Undersecretary for 
Terrorism and Financial Intelligence of the Treasury Department 
Stuart Levy said, "North Korea's use of a little-known bank, KKBC, 
to mask the international financial business of sanctioned 
proliferators demonstrates the lengths to which the regime will go 
to continue its proliferation activities and the high risk that any 
business with North Korea may well be illicit." 
 
In the wake of the measure, U.S. citizens and foreigners who do 
business in the U.S. can no longer have transactions with this 
bank. 
 
"ROK-US UFG Exercise Will Be Conducted As Scheduled" 
 
Foreign financial institutions doing business in the U.S. are 
regarding this additional sanction imposed by the Department of 
Treasury as an 'important recommendation' and it appears highly 
probable that they will stop having transactions with the North or 
become more prudent in having (future) transactions. 
 
Along with this, Michael Schiffer, the Deputy Assistant Secretary of 
Defense for East Asian Affairs said, "The ROK-U.S. combined UFG 
(Ulchi Freedom Guardian) exercise, which was planned to start on 
August 17, will be conducted as scheduled (without scaling-down the 
scope and size of the exercise)."   DASD Schiffer said, "As far as I 
know, there's no change, whatsoever, for the UFG exercise at this 
time point and it will be conducted as planned," in his interview 
with Chosun Ilbo, our newspaper.  He added, "When we consider the 
current security environment, it will be good to see U.S. forces 
maintain a strong level of capabilities in the ROK." 
 
The announcement by the U.S. Department of Treasury on additional 
sanctions to be imposed against North Korea and DASD Schiffer's 
remarks show definitively that the position of the Obama 
Administration regarding "the release of (the) two U.S. journalists 
is separate from U.S. policies on North Korean (proliferation.)" 
 
With this recent move, we can see that the U.S. makes clear that it 
will implement UNSC Resolution 1874 and at the same time will 
conduct the ROK-U.S. combined military exercise, designed to 
strengthen deterrence against North Korea, with no change in plans. 
 
In other words, it will be not easy for North Korea to have dialogue 
with the U.S. as long as the North doesn't 'return to the Six-Party 
Talks and implement a plan for denuclearization.  North Korea, 
meanwhile, continues to claim that the U.S. should relinquish its 
hostile policies towards the North. 
 
 
U.S. AMBASSADOR STEPHENS PLAYED MESSENGER ROLE BETWEEN USG AND 
FORMER ROK PRESIDENT KIM DAE-JUNG DURING HER SERVICE IN SEOUL IN THE 
1980S 
(Dong-a Ilbo, August 13, 2009, Page 5) 
 
SEOUL 00001284  006 OF 006 
 
 
 
By Reporter Cho Soo-jin 
 
U.S. Ambassador Stephens visits Kim Dae-jung in hospital. 
 
U.S. Ambassador to the ROK Kathleen Stephens visited former ROK 
President Kim Dae-jung at Severance Hospital in Seoul on August 12 
and consoled his wife Lee Hee-ho. 
 
After her visit, Ambassador Stephens told reporters, "I came here as 
a representative of the U.S. government.  Many Americans hope that 
former President Kim, who dedicated himself to democratization and 
peace, will make a quick recovery."  She also stressed, "Former 
President Kim and Mrs. Lee are old friends and colleagues of mine 
and Americans."  Just as she said, Ambassador Stephens has 
maintained a special and long relationship with former President Kim 
and Mrs. Lee. 
 
Ambassador Stephens started to work in the political section of the 
U.S. Embassy in Seoul during the "Seoul Spring" (a period of 
democratization in the ROK) in 1980 and served in the ROK until 
¶1989.  She said that while watching the June 1987 Democratic 
Uprising during her service as chief of the internal political unit 
at the U.S. Embassy in Seoul (1984-1987), she had a special feeling 
about then-opposition politicians, including former President Kim. 
 
A Foreign Ministry official said that at the time, Ambassador 
Stephens believed that a direct presidential election system should 
be put in place to achieve the ROK's democratization.  The official 
noted that the Ambassador played a considerable role in helping 
former President Kim build a closer relationship with the U.S. 
government.  Former Democratic Party leader Chyung Dai-chul, who, as 
Kim's aide, contacted Ambassador Stephens, said that Ambassador 
Stephens viewed (the ROK's) opposition activists favorably, 
dispelling the opinions among them that (they) should "keep a 
distance from the U.S." 
 
After taking office as the U.S. Ambassador to the ROK last year, 
Stephens visited former President Kim's house in Donggyo-dong, 
Mapo-gu, Seoul to give an inaugural greeting.  Ambassador Stephens 
also invited Mrs. Lee and senior officials from her charity 
organization, "Friends of Love" to the U.S. Embassy Residence in 
Jeong-dong, Jung-gu, Seoul for tea. 
 
 
STEPHENS