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UNCLAS SECTION 01 OF 02 SEOUL 001727 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; October 30, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Dong-a Ilbo, Hankook Ilbo, Hankyoreh Shinmun, Segye 
Ilbo, Seoul Shinmun, All TVs 
Constitutional Court Rules Media Reform Bills Valid; Court, However, 
Says Voting Process was Flawed 
 
JoongAng Ilbo 
National Intelligence Service Chief Pinpoints N. Korea's Postal 
Service as Source of DDos Cyber Attacks in July 
 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Foreign Minister Yu Myung-hwan said yesterday that the ROKG will 
send 200 troops and 50 police officers to Afghanistan to protect 
Korean civilian workers in the region. He added that the plan will 
be finalized after a government fact-finding team completes its 
on-site investigation next month. (Hankyoreh) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
On Oct. 28, President Obama signed a defense authorization bill that 
calls for the Administration to submit a report to Congress on 
whether to relist North Korea as a state sponsor of terrorism. 
Accordingly, the Obama Administration should submit to Congress a 
detailed report on the conduct of North Korea within the next 30 
days. (JoongAng) 
 
According to North Korea's official Korean Central News Agency, 
Chinese President Hu Jintao invited North Korean leader Kim Jong-il 
to visit China when he met in Beijing on Oct. 28 with the Secretary 
of the North's Workers' Party. There is speculation that the 
reclusive North Korean leader may visit China within the year. 
(JoongAng, Dong-a) 
 
According to Japan's Yomiuri Shimbun, the U.S. and North Korea 
agreed that Special Representative for North Korea Policy Stephen 
Bosworth would make a trip to North Korea late next month. 
(JoongAng, Dong-a, Hankook, Hankyoreh, Segye, Seoul, all TVs) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
Most media replayed an Oct. 29 report by Japan's Yomiuri Shimbun 
that the U.S. and North Korea agreed that Special Representative for 
North Korea Policy Stephen Bosworth would make a trip to North Korea 
late next month.  Media reports that this agreement was reached 
during the Oct. 24 meeting in New York between Sung Kim, Special 
Envoy for the Six-Party Talks and Ri Gun, Director General of 
American Affairs at North Korea's Foreign Ministry. 
 
All TV networks, however, reported that the U.S. denied this report, 
quoting State Department Spokesman Ian Kelly as saying: "There was 
no agreement for a specific bilateral meeting, no agreement to make 
any announcement of that sort either." 
 
 
-U.S. Economy 
------------- 
 
 
The U.S. Economy's 3.5 percent growth in the third quarter received 
wide press coverage.  Most media hailed it as the first positive 
growth since the financial crisis. 
 
SEOUL 00001727  002 OF 002 
 
 
 
Conservative Chosun Ilbo's sub-head read: "Growth Comes as 
'Surprise' ... However, It is Too Early to Feel Relieved." 
Right-of-center JoongAng Ilbo editorialized: "The U.S. economy 
remains fraught with challenges.  In addition to the bursting of the 
housing bubble, the default rate on commercial mortgages held by 
small and mid-sized U.S. banks is serious.  The U.S. unemployment 
rate, which is reaching 10 percent, continues to hamper consumer 
spending. ... Some observers even argue that additional public funds 
should be injected into General Motors (GM).  When the U.S. economy 
is teetering, it inevitably has an adverse impact on the ROK.  ... 
Once the 'Cash for Clunkers' program ended in the U.S., Hyundai and 
Kia's local sales for September plunged 47 percent from the previous 
month." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
We Pay Attention to Possibility of "Double-Dip" Recession in U.S. 
(JoongAng Ilbo, October 30, 2009, Page 46) 
 
The prospect of U.S. economy is becoming uncertain again.  With the 
economic stimulus package nearing expiration, the possibility of a 
"double-dip" is looming large.  New home sales fell again after six 
months of increases.  The housing market is reeling even before the 
8,000 dollars tax credit for first-time home buyers expires at the 
end of November.  The U.S. car industry is suffering similar 
difficulties.  As the "Cash for Clunkers" program which offered 
4,500 dollars for a new vehicle ended in late August, U.S. auto 
sales began to plunge dramatically.  U.S. auto sales in September 
declined 22.7 percent from the same period of last year. 
 
The U.S. economy remains fraught with challenges even though the 787 
billion dollar stimulus package has paid off temporarily.  In 
addition to the bursting of the housing bubble, the default rate on 
commercial mortgages held by small and mid-sized U.S. banks is 
serious.  The U.S. unemployment rate, which is reaching 10 percent, 
continues to hamper consumer spending. Restructuring efforts also 
have been insufficient.  Some observers even argue that additional 
public funds should be injected into General Motors (GM).  When the 
U.S. economy is teetering, it inevitably has an adverse impact on 
the ROK.  The situation of Hyundai and Kia Motors is a case in 
point.  Once the "Cash for Clunkers" program ended in the U.S., 
Hyundai and Kia's local sales for September plunged 47 percent from 
the previous month. 
 
Columbia University Professor Joseph Stiglitz said during his recent 
visit to the ROK, "The global economic crisis is not over yet, and 
there is a long way to go."  From the U.S. economy, which is 
staggering once again, we can learn how difficult it is to achieve a 
"self-sustaining and sustainable economy."  Providing housing and 
automobile subsidies for economic stimulus is only a temporary 
stopgap measure.  It simply advances future demands, and its 
long-term effects are limited.  The ROKG should first reexamine the 
effect of the extraordinary steps and fiscal spending which it has 
employed so far.  The Bank of Korea also needs to take a more 
cautious approach toward exit strategies, including an interest rate 
hike.  If we are complacent about our higher-than-expected economic 
growth and largest current account surplus in history, we could be 
caught off guard once again as we were at the end of last year. 
 
 
STEPHENS