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UNCLAS SECTION 01 OF 04 SEOUL 001377 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; August 27, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
Survey: 79 Percent of Lawmakers Polled Favor 
Reorganizing Administrative Districts 
 
JoongAng Ilbo 
High-level Officials Meet on Mortgage Issue; 
They May Have Discussed Changing Real Estate Policy 
 
Dong-a Ilbo 
Recall Vote Against Jeju Governor Nullified 
Due to Low Voter Turnout 
 
Hankook Ilbo 
Blue House, Defense Ministry at Odds over Budget Plan 
 
Hankyoreh Shinmun 
ROK's Jobless Beneficiaries Top One Million; 
 It is Time to Change Employment Policy 
 
Segye Ilbo, All TVs 
Faulty Shield Eyed as Cause of Failure to Orbit a Satellite 
 
Seoul Shinmun 
100 Elders to be Selected for Inter-Korean Family Reunion 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Red Cross officials from the two Koreas discussed possible dates for 
family reunions during yesterday's meeting at the Mt. Kumgang resort 
in North Korea. The ROK delegation proposed having 100 ROK people 
meet their families in the North between Sept. 27-29 and 100 North 
Koreans meet families in the ROK between Oct. 6-8. (All) 
 
According to an August 24 opinion survey of 1,011 adults across the 
ROK, 62 percent of those polled favored a summit between President 
Lee Myung-bak and North Korean leader Kim Jong-il, irrespective of 
the North's nuclear issue. Furthermore, 61 percent favored the 
resumption of tours to Mt. Kumgang only after the North apologizes 
for the shooting death of an ROK tourist by a North Korean soldier. 
(JoongAng) 
 
According to Hyundai Group, Hyundai Asan, operator of tours to Mt. 
Kumgang and Kaesong in North Korea, is seeking to resume tours to 
the ancient city of Kaesong, located just north of the 
heavily-fortified Demilitarized Zone, around Sept. 14. (Dong-a) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
State Department Spokesman Ian Kelly said during an August 25 
regular briefing: "We are fully aware that the North Koreans would 
like to have bilateral talks. But they are also fully aware of our 
position on this - that we will not have bilateral talks until they 
agree to return to the Six-Party Talks. We have no plans - 
Ambassador Bosworth has no plans, Ambassador Sung Kim has no plans - 
to go to North Korea." (All) 
 
Chosun Ilbo carried an analysis that said that the Obama 
Administration rejected North Korea's overtures for dialogue because 
it believes that international sanctions against North Korea - led 
by Philip Goldberg, U.S. Coordinator for the Implementation of UN 
Security Council Resolution 1874 - are working. 
 
 
MEDIA ANALYSIS 
-------------- 
 
 
SEOUL 00001377  002 OF 004 
 
 
-N. Korea 
--------- 
All ROK media gave front-and inside-page attention to August 25 
press remarks by State Department Spokesman Ian Kelly, in which he 
said: "We are fully aware that the North Koreans would like to have 
bilateral talks. But they are also fully aware of our position on 
this - that we will not have bilateral talks until they agree to 
return to the Six-Party Talks.  We have no plans - Ambassador 
Bosworth has no plans, Ambassador Sung Kim has no plans - to go to 
North Korea.  " 
 
Conservative Chosun Ilbo described this as a U.S. rejection of North 
Korea's recent request for a visit to Pyongyang by Stephen Bosworth, 
the U.S. Special Representative for North Korea Policy. 
 
Chosun also carried an analysis from Washington entitled "U.S. 
Cutting Off N. Korea's Sources of Money in China and Southeast 
Asia."  It said that the Obama Administration rejected North Korea's 
overtures for dialogue because it believes that international 
sanctions against North Korea - led by Philip Goldberg, U.S. 
Coordinator for the Implementation of UN Security Council Resolution 
1874 - are working.  The analysis further observed: "By disclosing 
that Ambassador Bosworth has no plans (to go to North Korea) while 
stressing Mr. Goldberg's role, the U.S. State Department sent a 
message to both the ROK and North Korea:  For the North, it stressed 
that the only way to have a dialogue is to return to the 
denuclearization process, and for the ROK, it expressed the Obama 
Administration's negative position on unconditionally resuming 
inter-Korean dialogue." 
 
Right-of-center JoongAng Ilbo carried an August 24 opinion survey of 
1,011 adults across the ROK, in which 62 percent of those polled 
favored a summit between President Lee Myung-bak and North Korean 
leader Kim Jong-il, irrespective of the North's nuclear issue. 
Furthermore, according to the survey result, 61 percent favored the 
resumption of tours to Mt. Kumgang only after the North apologizes 
for the shooting death of an ROK tourist by a North Korean soldier. 
 
 
FEATURES 
-------- 
 
"U.S. WILL NOT HAVE BILATERAL TALKS UNTIL NORTH KOREA AGREES TO 
RETURN TO SIX-PARTY TALKS" 
(Chosun Ilbo, August 27, 2009, page 1) 
 
By Correspondent Lee Ha-won 
 
On August 25, the U.S. administration rejected North Korea's request 
for a visit to Pyongyang by Stephen Bosworth, the U.S. Special 
Representative for North Korea Policy.  North Korea has been making 
conciliatory gestures since early this month. 
 
State Department Spokesman Ian Kelly said during an August 25 
regular briefing, "We have no plans - Ambassador Bosworth has no 
plans, Ambassador (Sung) Kim has no plans - to go to North Korea." 
 
 
When questioned whether the U.S. would not have bilateral talks 
unless North Korea agrees to restart the Six-Party Talks, Kelly 
said, "Right," hinting that Ambassador Bosworth's visit to Pyongyang 
will be made only after North Korea agrees to return to the 
Six-Party Talks. 
 
U.S. CUTTING OFF N. KOREA'S SOURCES OF MONEY IN CHINA AND SOUTHEAST 
ASIA 
(Chosun Ilbo, August 27, 2009, page 4) 
 
By Correspondent Lee Ha-won 
 
The U.S. State Department said officially on August 25, "We have no 
plans - Ambassador Bosworth has no plans, Ambassador (Sung) Kim has 
no plans - to go to North Korea," stressing North Korea's need to 
agree to the basic principle of returning to the Six-Party Talks and 
 
SEOUL 00001377  003 OF 004 
 
 
achieving denuclearization. 
 
Previously, North Korea issued an invitation to Stephen Bosworth, 
the U.S. Special Representative for North Korea Policy to visit 
Pyongyang and extended a request for talks (with the U.S.) through 
New Mexico Governor Bill Richardson. 
 
The Obama Administration rejected North Korea's overtures for 
dialogue because it believes that international sanctions against 
North Korea - led by Philip Goldberg, U.S. Coordinator for the 
Implementation of UN Security Council Resolution 1874 - are working. 
 
 
Goldberg is in charge of coordinating the implementation of UNSC 
Resolution 1874 and has focused on choking off North Korea's 
financial transactions.  A diplomatic source in Washington D.C. says 
Goldberg -- like Richard Holbrooke, U.S. Special Envoy to 
Afghanistan and Pakistan -- knows how to "twist the other's wrist" 
to attain his goal.  Goldberg has repeatedly said that the U.S. will 
cut off North Korea's suspicious financial dealings with the outside 
world. 
 
Goldberg has met with high-ranking officials and key figures from 
the financial sectors to emphasize the illegality and danger 
involving financial transactions with North Korea.  The U.S. 
thoroughly verified information on the foreign banks suspected of 
dealing with North Korea in 2005 when the U.S. froze North 
Korean-related accounts - 25 million dollars - held in the Banco 
Delta Asia (BDA).  In an interview with the Chosun Ilbo, William 
Newcomb, who had been involved in the BDA case, said that there were 
several other suspected banks in addition to BDA (at that time.) 
 
Goldberg targets companies and financial institutions that serve as 
a financial "window" for North Korea and seeks cooperation from 
relevant countries if there are signs of any suspicious dealings. 
In 2005 when the BDA was designated as a "primary money-laundering 
concern" for North Korea, the world's financial institutions were 
reluctant to have financial dealings with the BDA.  Banks in 
Southeast Asia and China, which engage in financial dealings with 
North Korea, are on high alert due to their concern that if they 
ignore Goldberg's request for cooperation, it will invite isolation 
from the international financial arena. 
 
Goldberg also reportedly focuses on searching for borrowed-name bank 
accounts through which North Koran leader Kim Jong-il has bought 
luxury goods. 
 
Observers say that this will undermine North Korea's financial 
activities in Malaysia, Singapore and Thailand, the North's three 
(financial) strongholds in Southeast Asia. 
 
During an August 26 visit to Tokyo, Goldberg said, "We are not just 
going back to the talks.  That's not what the stated goal is.  Our 
goal is a process leading to denuclearization."  This indicates his 
intention to keep sanctions in place until North Korea pursues the 
denuclearization it had promised in the Joint Statement of September 
19, 2005. 
 
By disclosing that Ambassador Bosworth has no plans (to go to North 
Korea) while stressing Mr. Goldberg's role, the U.S. State 
Department sent a message to both the ROK and North Korea:  For the 
North, it stressed that the only way to have a dialogue is to return 
to the denuclearization process, and for the ROK, it expressed the 
Obama Administration's negative position on unconditionally resuming 
inter-Korean dialogue. 
 
62%: "ROK AND NORTH KOREAN LEADERS SHOULD MEET IRRESPECTIVE OF THE 
NORTH'S NUCLEAR ISSUE; 61%: "TOURS TO MT. KUMGANG SHOULD RESUME ONLY 
AFTER THE NORTH'S APOLOGY" 
(JoongAng Ilbo, August 27, 2009, Page 3) 
 
By Reporter Shin Chang-woon 
 
The JoongAng Ilbo's research team conducted a nationwide telephone 
 
SEOUL 00001377  004 OF 004 
 
 
survey of 1,011 adults over the age of 19 on August 24.  The 
respondents were selected using "quota sampling" based on the 
demographic variables of gender, age, and region.  The poll's margin 
of error is plus or minus 3.1 percentage points with a 95 percent 
confidence level in the results.  The response rate was 15.3%. 
 
¶Q. When should an inter-Korean summit take place? 
 
The two leaders should meet unconditionally to ease the strained 
inter-Korean relations.  61.9% 
The two leaders should meet after seeing some progress on the North 
Korean nuclear issue.36.5% 
Don't know/No response 1.6% 
 
 
¶Q. When should tours to Mt. Kumgang resume? 
 
They should resume after North Korea apologizes over the shooting 
death of an ROK tourist by a North Korean solider and promises to 
prevent the recurrence of a similar incident.60.8% 
They should resume (before North Korea apologizes) in order to 
facilitate private-level exchanges. 37.5% 
Don't know/No response1.7% 
 
 
¶Q. How will the death of former President Kim Dae-jung affect 
inter-Korean relations? 
 
The relations will remain unchanged.45.1% 
The relations will improve. 45.0% 
 
 
¶Q. How will the death of former President Kim Dae-jung affect the 
Democratic Party? 
 
The Democratic Party will be united. 34.2% 
The Democratic Party will remain unchanged. 34.1% 
 
 
TOKOLA