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UNCLAS SECTION 01 OF 07 SEOUL 001363 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 25, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
Senior Official at Green Cross, a Local Drug Maker: "Global War 
Underway to Secure More Antiviral Drugs, with New Flu Pandemic 
Expected This Winter" 
 
JoongAng Ilbo, All TVs 
Bosworth, Sung Kim to Visit Pyongyang Next Month for First Bilateral 
Nuclear Negotiations 
 
Dong-a Ilbo, Segye Ilbo, Seoul Shinmun 
ROK Stockpiles Tamiflu for 5 Million People 
 
Hankook Ilbo 
President Lee Myung-bak Considering Forming "Young Cabinet" 
 
Hankyoreh Shinmun 
Democratic, Reform-minded Forces Agonizing over How to Rally 
Supporters in Aftermath of Deaths of Former Presidents Kim Dae-jung 
and Roh Moo-hyun 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
The Blue House yesterday denied that North Korea's delegation to 
late former President Kim Dae-jung's state funeral had proposed an 
inter-Korean summit between President Lee Myung-bak and North Korean 
leader Kim Jong-il. The presidential office was quoted: "During the 
meeting between President Lee and the North Korean delegation, they 
had general discussions on how to improve inter-Korean relations but 
did not mention anything at all regarding an inter-Korean summit." 
(All) 
 
Philip Goldberg, visiting U.S. Coordinator for the Implementation of 
UN Security Council Resolution 1874, met yesterday with ROKG 
officials, including Chief ROK Delegate to the Six-Party Talks Wi 
Sung-lac. He told reporters after the meetings that inter-Korean 
tourism projects and the joint Kaesong Industrial Complex are 
"issues outside of the resolution." (All) He also stressed that 
international efforts to enforce sanctions against North Korea will 
continue. (Chosun, Hankyoreh, Segye) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
According to a senior diplomatic source in Washington, Stephen 
Bosworth, the U.S. Special Representative for North Korea Policy, 
will travel to Pyongyang next month at North Korea's invitation for 
the first bilateral nuclear negotiations between the two countries. 
Bosworth will be accompanied by Sung Kim, Special Envoy for the 
Six-Party Talks. (JoongAng, all TVs) 
 
 
MEDIA ANALYSIS 
-------------- 
 
- Special Envoy Goldberg in ROK 
------------------------------- 
All ROK media gave wide attention to press remarks in Seoul 
yesterday by Philip Goldberg, U.S. Coordinator for the 
Implementation of UN Security Council Resolution 1874, in which he 
said that inter-Korean tourism projects and the joint Kaesong 
Industrial Complex are (issues outside of the resolution) , while 
noting that international efforts to enforce sanctions against North 
Korea will continue. 
 
In a related development, right-of-center JoongAng Ilbo quoted an 
ROKG official as warning against reading too much into his remarks, 
 
SEOUL 00001363  002 OF 007 
 
 
saying: "It seems that he just meant to say that such projects pose 
no problem in legal terms, not to encourage or support resumption of 
tours to Mt. Kumgang." 
 
Newspapers carried the following headlines: "ROKG Faced with Dilemma 
of Improving Ties with N. Korea Amid Continued Sanctions" 
(conservative Chosun Ilbo); "U.S. Reflects ROK's Position...Some 
Obstacles Removed for Tours to Mt. Kumgang" (right-of-center 
JoongAng Ilbo); and "U.S. Attaches the Caveat, "At the Moment" ... 
It Will Likely Watch North Korea's Attitude" (conservative Dong-a 
Ilbo) 
 
- N. Korea 
---------- 
 
Citing a senior diplomatic source in Washington, right-of-center 
JoongAng Ilbo and all TV networks reported that Stephen Bosworth, 
the U.S. Special Representative for North Korea Policy, will travel 
to Pyongyang next month at North Korea's invitation and that he will 
be accompanied by Sung Kim, Special Envoy for the Six-Party Talks. 
 
 
JoongAng Ilbo, in particular, noted that this visit will mark the 
first bilateral nuclear negotiations between the two countries, and 
further quoted the source as saying: "The U.S. principle of having a 
bilateral negotiation with the North within the framework of the 
Six-Party Talks remains unchanged, but the Obama Administration will 
convey its willingness to offer a comprehensive package in return 
for the North's denuclearization during the delegation's trip to 
Pyongyang." 
 
JoongAng went on to cite the source as stating that, noting North 
Korea's recent series of conciliatory gestures, the USG sees it as 
highly likely that the delegation will meet with North Korean leader 
Kim Jong-il during their trip. 
 
Regarding controversy over North Korea's alleged proposal for a 
third inter-Korean summit, moderate Hankook Ilbo editorialized: 
"Even though North Korea is taking a series of conciliatory 
gestures, it is not time to mention an inter-Korean summit. ... In 
the first place, we must endeavor to strengthen inter-Korean trust 
and cooperation without disrupting international efforts to 
denuclearize North Korea.  If an inter-Korean summit takes place in 
this mature atmosphere, it will not only help North Korea make a 
decision to give up its nuclear ambitions but also help the ROK play 
a leading role in the denuclearization process." 
 
 
OPINIONS/EDITORIALS 
-------------------- 
Shifting Ties with N. Korea Will Be a Long Game 
(Chosun Ilbo, August 25, 2009, page 39) 
 
Blue House spokesman Lee Dong-kwan on Monday said the government 
believes that the old ways in inter-Korean summits or dialogue "are 
no longer permissible" and called for a change in inter-Korean 
relations which the media are describing as a "paradigm shift." 
"Inter-Korean relations must not be viewed as a special relationship 
and remain trapped in that framework, but must be subject to 
international principles in order to progress," he said. 
 
The government said the new principle was applied in practice for 
the first time when President Lee Myung-bak met a delegation of 
North Korean officials who were in Seoul for the funeral of former 
President Kim Dae-jung.  Previous administrations allowed visiting 
North Korean officials to meet government officials at their 
convenience.  But this time, Lee included the meeting in a string of 
similar encounters with officials from other countries who had come 
to pay their respects to Kim.  And instead of timing it by the 
schedule of the North Koreans, they had to wait their turn, with the 
result that they extended their stay by an extra day to meet the 
president.  The government reportedly told the delegation that 
fundamental progress in inter-Korean relations is possible only when 
the nuclear problem is resolved.  With that, the Lee Administration 
 
SEOUL 00001363  003 OF 007 
 
 
has placed an issue at the top of its agenda for talks with North 
Korea that previous governments were afraid to address in case it 
might anger the regime. 
 
The government did the right thing in deciding to pursue dialogue 
but make it clear that the rules have changed.  The reason past 
inter-Korean talks generated so much debate and conflict in the ROK 
lies not only in what was discussed but in the way the talks took 
place.  Previous administrations approached inter-Korean talks as 
their crowning achievement, which only encouraged North Korea's 
impudence, acting as though the ROK should be thanking the North for 
accepting aid.  This has angered many South Koreans.  Under the two 
administrations of the last decade, the ROK gave US$ 6.9 billion 
worth of assistance to the North, but instead of a "thank you," 
North Korea conducted two nuclear tests and test-launched a battery 
of missiles.  This is why the ROK has been accused of inadvertently 
aiding the North's arms development by providing lavish cash support 
for the regime and allowing it to gain valuable time. 
 
The Kim Dae-jung and Roh Moo-hyun Governments handled inter-Korean 
ties on the basis of a "special relationship," with some officials 
even talking about an "internal approach" whereby North Korea's 
antics must be seen from the perspective of its own government.  But 
by treating inter-Korean relations as a special matter among "one 
nation," the ROK ended up rationalizing Pyongyang's grandstanding, 
and the internal approach meant turning a blind eye to its vile 
human rights abuses. 
 
The government has called for a "paradigm shift" in inter-Korean 
relations because it wants to emancipate itself from that 
relationship and apply proper international principles to 
cross-border ties.  But chances that North Korea will simply accept 
this are slim.  The two Koreas may well end up in a prolonged 
tug-of-war, and inter-Korean dialogue could fall apart again before 
any fundamental changes can be achieved. 
 
The government will need patience and wisdom as well as flexibility 
as it pursues its broad objectives in relations with North Korea. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
U.S. Envoy Plans Nuclear Talks with North in Sept. 
(JoongAng Daily, August 25, 2009) 
 
By Reporters Kim Jung-wook and Ser Myo-ja 
 
The top U.S. official in charge of North Korea policy will travel to 
Pyongyang next month for the first bilateral nuclear negotiations 
between the two countries, a senior diplomatic source in Washington 
has told the JoongAng Ilbo. 
 
Stephen Bosworth, the U.S. Special Representative for North Korea 
Policy, will head to Pyongyang at the North's invitation, the source 
told the newspaper on Sunday, Washington time.  Bosworth will be 
accompanied by Sung Kim, Washington's point man for the Six-Party 
nuclear talks, he added. 
 
The U.S. delegation will likely visit the ROK, China and Japan in 
early September and then head to the North, according to the 
source. 
 
The trip was to be announced officially in early September, 
immediately before their departure to Pyongyang, the diplomat added. 
 
 
Noting North Korea's series of recent positive gestures, the Obama 
Administration sees a high possibility that the delegation will meet 
with the North's reclusive leader Kim Jong-il during their trip, the 
source said. 
 
Bosworth, who served as U.S. Ambassador to the ROK from 1997 to 
2001, was named by Secretary of State Hillary Clinton as the 
administration's special envoy for the North last February. 
 
SEOUL 00001363  004 OF 007 
 
 
Following efforts to persuade the North to give up its nuclear arms 
program in 1994, Bosworth served as the Executive Director of the 
Korean Peninsula Energy Development Organization to implement the 
1994 Geneva Agreed Framework between Washington and Pyongyang aimed 
at freezing the North's nuclear activity. 
 
"Since his appointment in February, Bosworth has openly and 
repeatedly said he would like to visit North Korea, but Pyongyang 
snubbed the offer by conducting missile and nuclear tests," the 
source said.  "The North, however, recently expressed its intention 
to invite Bosworth." 
 
According to the source, Washington has decided to send Bosworth to 
Pyongyang as key obstacles in U.S.-North relations have been 
removed.  Two jailed American reporters were released earlier this 
month and former U.S. President Bill Clinton confirmed the stability 
of the Kim Jong-il regime, the source said. 
 
The diplomat said Washington has begun discussions with its 
partners. 
 
"It's likely that Bosworth will travel to Asia to explain the 
situation to Seoul, Beijing and Tokyo in early September and then go 
to Pyongyang," he said.  "A comprehensive package will be offered in 
return for the North's denuclearization during his trip to 
Pyongyang.  The U.S. principle of having a bilateral negotiation 
with the North within the framework of the Six-Party Talks will 
remain unchanged." 
 
Another diplomatic source also said the Obama Administration will 
never abandon the Six-Party Talks because it sees the root of 
Pyongyang's recent peacemaking gestures in the international 
community's participation in the UN sanctions against the North. 
 
"Even if negotiations move forward, the UN sanctions will not be 
lifted easily," the source said.  "Instead, the Obama Administration 
will likely provide a de facto assurance for the North Korean 
regime's security by promising that it will not intervene in the 
succession of the Kim Jong-il regime to his son while pressuring Kim 
to give up nuclear programs." 
 
The outcome of Bosworth's planned trip, however, remains to be seen. 
A key official who had handled Korea policy in the Bush 
Administration says that North Korea will never give up nuclear arms 
programs. 
 
The ROK's nuclear envoy Wi Sung-lac has already met with his U.S. 
counterpart Sung Kim and Bosworth in Hawaii earlier this month and 
discussed North Korea issues.  The discussions were called 
brainstorming sessions aimed at finding ways forward, Seoul's 
Foreign Ministry said at the time. 
 
Bosworth again arrived in Seoul Saturday as part of a 10-member U.S. 
condolence delegation to attend ex-President Kim Dae-jung's funeral 
on Sunday.  Pyongyang also sent a condolence delegation to Seoul. 
Bosworth met with Wi and other Korean officials over the weekend. 
 
It appears that the Obama Administration has chosen the strategy of 
carrot and stick to deal with the nuclear-armed North.  A team of 
U.S. officials handling North Korea issues also arrived in Seoul 
Sunday for talks with officials here.  Unlike Bosworth, they were to 
seek Seoul's support to enforce UN sanctions against the North. 
 
Philip Goldberg, the U.S. diplomat tasked with enforcing UN 
Resolution 1874 which was adopted to counter Pyongyang's May 25 
nuclear test, met with Wi yesterday.  Goldberg led an inter-agency 
team composed of officials from the Treasury Department, the Defense 
Department, and the National Security Council at the White House. 
 
According to wire reports, Wi said the objective "is a complete, 
verifiable denuclearization of North Korea," and Goldberg replied, 
"Absolutely, that is certainly our goal." 
 
Following his meeting with Wi, Goldberg addressed the press, 
 
SEOUL 00001363  005 OF 007 
 
 
reconfirming Washington's stance on financial sanctions against 
North Korea.  "Our goal is to return to the process of 
denuclearization, to talks aimed at the goals that are laid out in 
the UN resolution," Goldberg said, stressing efforts to implement 
the resolution. 
 
While noting that inter-Korean tourism is not in the resolution, 
Goldberg said the international community's efforts to enforce 
sanctions on Pyongyang will continue. 
 
The ROK's Hyundai Group agreed with the North last week to resume 
stalled tour programs to Mt. Kumgang and Kaesong - projects largely 
seen as a cash cow for Pyongyang. 
 
"My assessment is that, at the moment, these are issues outside of 
that resolution and there are economic and humanitarian developments 
that are taken into account in the resolution as well," Goldberg 
told reporters.  He also added that the Kaesong Industrial Complex 
is outside the resolution. 
 
 
FEATURES 
--------- 
ROKG Faced with Dilemma of Improving Ties with N. Korea Amid 
Continued Sanctions 
(Chosun Ilbo, August 25, 2009, page 3) 
 
By Reporter Lim Min-hyuk 
 
The U.S. official tasked with ensuring compliance with UN sanctions 
against North Korea met with senior ROK officials in Seoul on 
Monday.  Philip Goldberg arrived a day after a North Korean 
delegation met with President Lee Myung-bak in an apparent attempt 
to improve relations as the sanctions begin to bite. 
 
Goldberg reviewed Seoul's compliance with UN Security Council 
Resolution 1874, which was adopted after the North's nuclear test in 
May, with the ROK's top nuclear negotiator Wi Sung-lac and Deputy 
Foreign Minister Oh Joon.  He also met relevant officials at the 
Ministries of Strategy and Finance and of Defense and the Bank of 
Korea. 
 
"Right now, we are concentrating on the implementation, and full 
implementation, of the resolution," Goldberg told reporters Monday. 
He said recent conciliatory signals from North Korea would be 
welcome if they lead to denuclearization but added sanctions 
including financial penalties for North Korean businesses and 
individuals involved in nuclear development will remain in place. 
 
A government official here said the U.S. "views the North's 
appeasement as designed to crack the firm cooperation system of the 
international community, which is why it's putting even more stress 
on cooperation from Seoul." 
 
Goldberg expressed support for cross-border business projects like 
package tours to Mt. Kumgang, whose resumption was the fruit of a 
meeting between Hyundai Group chairwoman Hyun Jeong-eun and North 
Korean leader Kim Jong-il.  "My assessment is that at the moment 
these are issues outside of that resolution," he said.  "And there 
are economic and humanitarian developments that are taken into 
account in the resolution as well." 
 
However, as Goldberg made a remark with the caveat, "at the moment," 
observers say that this assessment may not be genuine.  The U.S. has 
frequently complained that the package tours are a major source of 
hard currency for the North and alleges that the money has been used 
in nuclear and missile development.  In the past, Christopher Hill 
expressed a complaint that the inter-Korean tourism project seems to 
be designed to give money to the North Korean regime.  An ROKG 
official said that the tourism project may not run counter to 
resolutions in legal terms but the U.S. may come up with a different 
assessment (of the project) when it is politically interpreted. 
 
But at this point, hopes to improve inter-Korean relations, which 
 
SEOUL 00001363  006 OF 007 
 
 
are essentially a question of giving Pyongyang financial aid, and 
international cooperation run in exactly opposite directions.  "We 
must avoid any moves in inter-Korean relations that go against 
international joint efforts for denuclearization," warned Yun 
Duk-min, a professor at the Institute of Foreign Affairs and 
National Security.  "The government needs to stick to the principles 
it has maintained if it isn't to be dragged around by the North's 
tactics." 
 
Kim Sung-han, a professor at Korea University, urged the government 
to start with humanitarian projects like reunions of families 
separated by the Korean War, but go slowly on economic assistance. 
He added that the ROK should prioritize issues and take a realistic 
approach.  He noted that things could turn for the worse if the ROK 
attempts to resolve all pending issues at one time. 
 
 
(We have compared the English version on the website with the Korean 
version and added some sentences to make them identical.) 
 
U.S. Reflects ROK's Position...Some Obstacles Removed for Tours to 
Mt. Kumgang 
(JoongAng Ilbo, August 25, 2009, Page 4) 
 
By Reporter Ye Young-joon 
 
Philip Goldberg, U.S. Coordinator for the Implementation of UN 
Security Council Resolution 1874, said on August 24 that the Mt. 
Kumgang tourism and the Kaesong Industrial Complex business are 
"issues outside of the (UN) resolution." 
 
This statement was made at a sensitive moment.  It came a week after 
Hyundai Group Chairwoman Hyun Jeong-eun and North Korea's 
Asia-Pacific Peace Committee reached an agreement on the resumption 
of inter-Korean tourism projects and the revitalization of the 
Kaesong Industrial Complex.  Furthermore, the person who made such a 
remark was none other than the U.S. Envoy for North Korea sanctions 
who leads efforts to tighten the financial noose around North Korea 
through sanctions.  This is a sharp departure from the existing 
stance of the USG, which has directly and indirectly expressed 
concerns about the possibility that profits from the Mt. Kumgang 
tourism and the Kaesong Industrial Complex business may be diverted 
to North Korea's development of weapons of mass destruction. 
 
Goldberg's statement reaffirms that UNSC Resolution 1874 makes an 
exception for projects for humanitarian and developmental purposes. 
This also reflects the position of the ROKG, which was mindful of 
business on the Kaesong Industrial Complex even from the process of 
drafting Resolution 1874. 
 
In this regard, ROKG officials warned against reading too much into 
Goldberg's remark.  One official noted, "It seems that he just meant 
to say that such projects pose no problem in legal terms, not to 
encourage or support resumption of tours to Mt. Kumgang."  That is, 
in order to resume tours to Mt. Kumgang, a political will is more 
important than a legally authoritative interpretation.  Thus far, 
there has been no change in objective circumstances surrounding the 
resumption of the tourism project.  The Ministry of Unification in 
charge of the project drew a line, saying, "(The resumption of the 
Mt. Kumgang tourism) is a matter to be discussed between the two 
government authorities."  Another official stressed, "Before 
resuming the project, the two Koreas should agree to investigate the 
shooting death of an ROK tourist, Park Wang-ja, at the Mt. Kumgang 
resort and work out measures to prevent the recurrence of similar 
incidents and guarantee the safety of tourists.  At the Kaesong 
Industrial Complex, too, stricter safety guarantees should be put 
into place." 
 
Goldberg's statement, however, carries much significance from the 
viewpoint of possible improvement in inter-Korean ties.  Given an 
ROKG official's statement that "tourism at Mt. Kumgang and Kaesong 
is a project that the U.S. can make an issue of even without 
specific rules," Goldberg's remark is tantamount to removing one of 
the several stumbling blocks to the resumption of the tourism.  This 
 
SEOUL 00001363  007 OF 007 
 
 
also reflects the ROKG's position well.  The ROKG has adhered to the 
position that issues related to tourism and the development of 
industrial infrastructure (in the North) are not directly subject to 
UNSC Resolution 1874.  During an August 24 meeting with Goldberg, 
Chief ROK Delegate to the Six-Party Talks Wi Sung-lac and Deputy 
Minister for Multilateral, Global and Legal Affairs Oh Joon 
reportedly emphasized it and secured Goldberg's consent. 
 
The reason why the ROKG leaves room for the resumption of tours to 
Mt. Kumgang seems to be that the ROKG may intend to use it as 
leverage to persuade the North to abandon its nuclear programs and 
to make practical progress in inter-Korean relations.  A source 
said, "We are not saying that we will resume the projects but will 
just open the door and use it."  Therefore, the ROKG is expected to 
leave open the possibility of resuming the two projects and adjust 
the pace of the resumption depending on North Korea's willingness 
toward denuclearization and improvement in inter-Korean relations. 
 
 
"Mt. Kumgang Tourism and Kaesong Industrial Complex Are Outside of 
the UN Sanctions" 
(Hankyoreh Shinmun, August 25, 2009, page 6: EXCERPTS) 
 
By Reporter Lee Yong-in 
 
Philip Goldberg, U.S. Coordinator for the Implementation of UN 
Security Council Resolution 1874, said that UN sanctions against 
North Korea, including financial sanctions against North Korean 
companies or individuals involved in nuclear development, will 
remain in place.  He added, "Our goal is to return to the process of 
denuclearization, to talks aimed at the goals that are laid in the 
UN resolution."  When questioned about the possibility of U.S.-North 
Korea bilateral talks, Goldberg said, "We are not saying that there 
won't be bilateral contact but that it should be within the 
(Six-Party Talks) framework."  Previously, during a meeting with 
Chief ROK Delegate to the Six-Party Talks Wi Sung-lac, Goldberg said 
that the ultimate goal of the U.S. is to achieve irreversible 
denuclearization of North Korea. 
 
 
 
TOKOLA