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UNCLAS SECTION 01 OF 07 SEOUL 001784 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; November 9, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Dong-a Ilbo, Segye Ilbo, Seoul Shinmun 
Work on Four-River Restoration Project to Begin Tomorrow 
 
JoongAng Ilbo 
Labor Ministry to Blacklist Firms Paying Salaries 
to Full-Time Unionists 
 
Hankook Ilbo 
Prime Minister and Five Other Heavyweights from Ruling GNP, 
Government, and Blue House Meet 
to Discuss "Sejong City Plan" 
 
Hankyoreh Shinmun 
ROKG's Environmental Assessment for Four-River Project Criticized as 
"Inaccurate and Incomplete" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
A bipartisan group of 88 U.S. congressmen sent a letter to President 
Obama on Nov. 6 urging him to expedite the process for the 
ratification of the KORUS FTA prior to his Nov. 18 visit to Seoul. 
(All) 
 
Lawrence Summers, Chairman of the U.S. National Economic Council, 
indicated during a Nov. 6 ROK-U.S. Business Council meeting in 
Washington that (the U.S.) is preparing to ratify the KORUS FTA. 
(JoongAng, Dong-a, Hankook) 
 
12 U.S. congressmen from Michigan, the heart of the U.S. automobile 
industry, meanwhile, called for a revision of the KORUS FTA on the 
same day. (Dong-a, Hankyoreh, Segye, Seoul) 
 
 
INTERNATIONAL NEWS 
------------------- 
 
A senior ROKG official told Korean correspondents in Washington on 
Nov. 6 that the U.S. will soon announce that Special Representative 
for North Korea Policy Stephen Bosworth will visit Pyongyang to meet 
with Kang Sok-ju, the North's First Vice Foreign Minister. 
(JoongAng) 
 
Jeffrey Bader, Senior Director for East Asian Affairs at the 
National Security Council, said during a Nov. 6 seminar in 
Washington that the U.S. is prepared for direct talks with North 
Korea. (Dong-a, Hankyoreh, Segye, Seoul, MBC) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
All ROK media on Saturday covered Nov. 5 press remarks by Special 
Representative for North Korea Policy Stephen Bosworth, in which he 
said that the USG will "soon" decide on talks with North Korea and 
that if he does visit the North, it would most likely be "within 
weeks" after President Obama returns home from his Nov. 12-19 Asian 
trip. 
 
In a related development, right-of-center JoongAng Ilbo today quoted 
a senior ROKG official as telling ROK correspondents in Washington 
on Nov. 6 that the U.S. will soon announce that Special 
Representative for North Korea Policy Stephen Bosworth will visit 
Pyongyang to meet with Kang Sok-ju, the North's First Vice Foreign 
Minister. 
 
Jeffrey Bader, Senior Director for East Asian Affairs at the 
 
SEOUL 00001784  002 OF 007 
 
 
National Security Council, was also widely quoted as saying during a 
Nov. 6 seminar in Washington that the U.S. is prepared for direct 
talks with North Korea and that it is discussing the timing and 
method of U.S.-North Korea talks with allies. 
 
-U.S.-Japan Alliance 
--------------------- 
Conservative Chosun Ilbo editorialized today: "Prime Minister 
Hatoyama does not deny the importance of Japan's alliance with the 
U.S.  He has repeatedly said that the U.S.-Japan alliance is the 
cornerstone of Japan's diplomacy.  However, it is clear that the 
U.S.-Japan alliance, which has been hailed as the most solid 
alliance in the world over the past 55 years, is going through 
transitional pains. ...  There is a new perception at play behind 
Hatoyama's new diplomacy that with the U.S.-focused diplomacy alone, 
Japan cannot find a new means of survival in the 21st political 
environment marked by 'China's rise.'" 
 
Berlin Wall - 20th Anniversary of Its Fall 
Conservative Dong-a Ilbo editorialized: "The 20th anniversary of the 
fall of the Berlin Wall is an occasion for people of both Koreas to 
reflect on the stark reality of their national division. ... 
Continued personnel exchanges and cooperation between both Germanys 
laid the groundwork for reunification. ... Unfortunately, however, 
the road to Korean reunification is growing increasingly rockier, 
with North Korean leader Kim Jong-il seeking to transfer power to 
his son while confronting the international community with nuclear 
weapons.  The North's population of 24 million, brainwashed by their 
totalitarian government, is struggling with starvation.  In the 
early 1990s, the ROK's national income was six to eight times that 
of the North, but the gap is now 38 times. ...  Like in Germany, the 
Korean Peninsula could also see an unexpected reunification. ... 
Steady preparation is badly needed to minimize the costs and adverse 
effects of Korean reunification." 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
ON CHANGING U.S. STRATEGY 
(JoongAng Ilbo, November 7, 2009, Page 38) 
 
The United States has decided to keep the headquarters of its Eighth 
Army in the ROK, reversing plans to relocate it to Hawaii.  Next 
June, it will also form a new Korea Command, which will control the 
U.S. forces stationed here.  The move aims to minimize a gap in 
security on the peninsula when wartime operational control is 
transferred from the U.S. forces to South Korea in 2012.  The U.S. 
military wants to realign its units stationed here in accordance 
with its global military strategy.  And the new U.S. forces base in 
Pyeongtaek, Gyeonggi, scheduled to be complete in 2015, could serve 
as an overseas operational hub, a role currently assumed by the U.S. 
forces in Japan.  By giving strategic flexibility to the U.S. forces 
in South Korea, the Pyeongtaek base would become an advance base for 
the United States in Northeast Asia.  Given South Korea's 
geopolitical location neighboring North Korea and other regional 
powers, the new U.S. plans would be beneficial to our security.  But 
there are some issues to deal with as well.  The government must 
prepare measures in response to the restructuring of the U.S. 
military here. 
 
First, there is the fallout from the transfer of wartime operational 
command.  In emergencies, the ROK-U.S. Combined Forces Commander 
would control the U.S. forces here, American reinforcements from 
overseas and also the South Korean troops.  Up-to-date U.S. military 
intelligence from around the world and the country's combat 
capabilities would be put to efficient use in that case.  But by 
shifting the wartime command, South Korean forces would operate 
separately from their U.S. partners.  That runs the risk of 
compromising efficiency in the field.  The ROK-U.S. Mutual Defense 
Agreement stipulates automatic U.S. intervention in case South Korea 
comes under attack, but that is only on a theoretical basis.  The 
combined forces command is there to ensure such protection.  In 
other words, it has real impact in minimizing the possibility of 
 
SEOUL 00001784  003 OF 007 
 
 
North Korean provocations.  We need measures to prevent weakening of 
such effect.  The best solution would be to delay the transfer until 
at least the peninsula finds peace and stability. 
 
The forming of the new Korea Command would hinder our diplomatic 
activities in the future.  For instance, the presence of a U.S. 
advance base here might affect our relations with China or Russia. 
We can't avoid this possibility as long as we need U.S. troops in 
the nation, but still, the government needs to exercise flexibility 
to keep any negative side effects to a minimum. 
 
Finally, we must keep the latest move - with South Korea serving as 
the overseas base for the U.S. forces - from degenerating into an 
international controversy.  Some may charge that South Korea will 
depend entirely on the U.S. armed forces.  We must remember that 
western European nations and Japan have accepted a similar role for 
the sake of national security.  We must keep in mind that 
maintaining and strengthening our military alliance with the United 
States is the wisest option to satisfy our security needs. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
WHAT THE JAPAN-U.S. RIFT MEANS FOR NORTHEAST ASIA 
(Chosun Ilbo, November 9, 2009, Page 35) 
 
Tension between Washington and Tokyo is growing ahead of U.S. 
President Barack Obama's visit to Japan this Saturday and Sunday. 
The reason is Japanese Prime Minister Yukio Hatoyama's repeated 
comments since his inauguration in September that Japan has relied 
too much on the U.S. and will seek a more equal relationship. 
Hatoyama told lawmakers on Oct. 29 a "comprehensive review" is 
needed in U.S.-Japan relations. 
 
Hatoyama's cabinet wants to revise a 2006 agreement over the 
relocation of the Futenma air base in Okinawa.  Some lawmakers in 
the ruling Democratic Party want the air base out of Japan 
altogether.  That is threatening a U.S. strategy to reorganize its 
troop presence in Asia. 
 
The U.S. and Japan even canceled a foreign ministerial meeting 
planned in Washington.  Some experts are saying the rift is too deep 
to patch up in a hurry.  The U.S. government and media have said 
recently that Japan is not what it used to be, criticizing it for 
replacing China as Washington's "headache."  The U.S. has considered 
its ties with Tokyo the cornerstone of its diplomatic strategy in 
Asia, which is why it is so sensitive. 
 
But Hatoyama is showing no signs of backing down, saying he is 
against the U.S. attempts to solve problems in Afghanistan by 
military means.  All the while, Hatoyama is looking for closer Asian 
integration, proposing an East Asian Community. 
 
Prime Minister Hatoyama does not deny the importance of Japan's 
alliance with the U.S.  He has repeatedly said that the U.S.-Japan 
alliance is the cornerstone of Japan's diplomacy.  However, it is 
clear that the U.S.-Japan alliance, which has been hailed as the 
most solid alliance in the world over the past 55 years, is going 
through transitional pains.  These changes cannot be seen solely as 
the result of Hatoyama's decisions.  There is a new perception at 
play behind Hatoyama's new diplomacy that with the U.S.-focused 
diplomacy alone, Japan cannot find a new means of survival in the 
21st political environment marked by "China's rise." 
 
In August, Hatoyama claimed that the era of U.S.-led globalization 
is coming to an end and the world is heading toward a multipolar 
order.  Washington is bogged down in two wars, and the global 
financial crisis is testing its resources.  Even under the Liberal 
Democrats, Japanese officials worried whether Washington's 
diplomatic policies favored Tokyo or Beijing.  But Japanese 
officials were shocked to see the Obama Administration raise its 
relationship with China to a "strategic partnership."  Until then, 
Washington had viewed China as both a cooperative partner and a 
 
SEOUL 00001784  004 OF 007 
 
 
country to be wary of.  The reason the Hatoyama Administration is 
seeking to change Japan's 100-year-old diplomatic style by focusing 
more on Asia is not just due to the threat to Washington's dominance 
but to the need to adopt quickly to the shift in policies by the 
Obama Administration. 
 
It remains to be seen how Hatoyama's new foreign policy will shape 
up and whether it proves no more than a temporary escape from 
traditional policies.  But it is clear that diplomacy in Asia, where 
the interests of South Korea, China and Japan are closely 
intertwined, will change.  South Korea faces the task of preparing 
for eventual reunification with North Korea and must fine-tune its 
national strategy by accurately forecasting the changes from U.S.'s 
decline and China's rise.  The sounds of discord between Washington 
and Tokyo should be taken as a wake-up call for South Korea in 
shaping its national strategy in the increasingly fluid and complex 
diplomatic landscape of Northeast Asia. 
 
 (This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
NATIONAL ASSEMBLY APPROVES TRADE PACT WITH INDIA; NOW IT IS THE 
KORUS FTA'S TURN 
(JoongAng Ilbo, November 9, 2009, page 33) 
 
The National Assembly yesterday ratified a Comprehensive Economic 
Partnership Agreement (CEPA) with India virtually unanimously (192 
in favor with 5 abstentions),  opening the door to the Indian market 
with its 1.2 billion population starting early next year.  The CEPA 
is as effective as a free trade agreement (FTA).  If the National 
Assembly had failed to ratify the CEPA this time, we would have had 
to wait another year to ratify the trade deal.  Even though the 
ruling and opposition parties have been mired in political 
bickering, lawmakers ratified the CEPA by an overwhelming vote, 
showing that they can cooperate on an issue of vital national 
interest.  It is praiseworthy that the National Assembly swiftly 
ratified the CEPA before the deadline. 
 
With the CEPA coming into effect next year, the ROK will be able to 
gain an upper hand in the Indian market, which has the world's 
fourth largest consumption power, over other competitors.  This is 
because the ROK is the first country, among India's major 
competitors, to open the door to free trade with India.  Now 
attention is drawn to when the already-signed KORUS and ROK-EU FTAs 
will be ratified.  Since the recently concluded FTA with the EU does 
not face much opposition in the ROK, it does not seem that it will 
be difficult to get legislative approval (to ratify) the agreement. 
However, ratification of the KORUS FTA, which was signed earlier 
than the ROK-EU FTA, is facing difficulty both in the ROK and the 
U.S. 
 
The atmosphere in the U.S. is, however, turning favorable after 88 
Congressmen sent a letter to President Barack Obama urging him to 
ratify the pact.  White House Economic Advisor Lawrence Summers also 
recently said, at the Korea-U.S. Economic Conference in Washington, 
"The USG is preparing itself for the FTA's ratification," implying 
that there was some progress in the ratification process.  The 
problem is that since the FTA bill passed the ROK National Assembly 
Standing Committee this past April, the bill has not even been laid 
before the plenary session of the National Assembly for six months. 
The ruling and opposition parties approved the trade deal with India 
under the spirit of "giving top priority to the national interest." 
We hope that they will exercise the same spirit in persuading the 
U.S. to ratify the ROK-U.S. FTA.  That is what a hard-working 
National Assembly should do. 
 
 
FEATURES 
--------- 
 
U.S. AMBASSADOR STEPHENS SAYS THAT ROK HAS MADE IMPRESSIVE 
IMPROVEMENT IN ITS BUSINESS ENVIRONMENT... G20 WILL SERVE AS 
OPPORTUNITY FOR ROK TO BECOME GLOBAL HUB 
 
SEOUL 00001784  005 OF 007 
 
 
(Korea Economic Daily, November 9, 2009, page 33) 
 
U.S. Ambassador to the ROK Stephens calls herself an "optimist." 
When I entered the U.S. Embassy's office for interview, an Indian 
ink painting, which is hung in the center of the wall, came into my 
sight first.  She said with a beaming smile, "When I visited Yesan 
Middle school after thirty years, my students gave this (to me) as a 
gift to celebrate my (appointment as Ambassador.)  This painting is 
my hometown in my heart." 
 
When asked what she thinks about some opinions that the ROK's 
cultural standards have not kept up with its economic growth, 
Stephens said that the ROK's cultural standards were high in the 
1970s.  These favorable remarks show her deep love for Korea as the 
first U.S. Ambassador to the ROK who has Korean name, Shim 
Eun-kyong. 
 
¶Q.  How was the first year as U.S. Ambassador to the ROK? 
 
"When I first arrived here, I think (it was) a day or so after 
Lehman Brothers collapsed.  When I arrived, I had the economic 
situation very much on my mind.  I was impressed by the spirit of 
determination I saw in Korea to approach the crisis in a very 
resolute fashion.  (When I first came to Korea in the 1970s,) I 
certainly knew that Korea was changing very rapidly.  Among Korean 
people, there was even at that time a very deep desire for a modern 
democratic country.  Korea, I see today, exceeds in its economic 
vibrancy and the health of its democracy, it exceeds even what were 
my high expectations based upon two years of living in Korea in the 
1070s.  I think that Korea in a much closer time than thirty years 
but in the coming years will play increasingly an important role not 
only in the region but also on the world stage. Chairing of the G20 
next year is one early sign of that." 
 
¶Q. Is it true that you decided to become a diplomat when you worked 
as a peace corps volunteer? 
 
"I came to Korea in 1975 and (I had just) come out of the 
university.  I knew many young men who had been faced with the 
question of going to Vietnam to fight in a war, which was dividing 
our society.  That was the context.  I came to Korea and, as I lived 
in Yesan, I thought that East Asia is very important to the U.S. now 
and (will be) even more so in the future.   I saw what was happening 
in Korea, the sense of great potential going forward.  It is even 
more difficult to try to understand a country that has a very 
different history and culture than your own.  At that time, in 
Korean schools, especially in the boys' schools with very large 
classes of 70 students, they had to maintain order.  Sometimes, some 
teachers were very severe in the way they punished the boys. 
Sometimes it was actually rather shocking (to see) a young student 
being punished physically, very severely.  What do you do about it? 
Do you try to persuade the teacher that there is a better way?  Do 
you leave the (teacher's) room?  There is no one answer.  You have 
to think about the situation itself and what you want to achieve and 
then adjust your approach.  I think that is what diplomacy is about 
too." 
 
¶Q. Do you think the Lee Myung-bak Government has a good relationship 
with the Obama Administration? 
 
"Now we have two presidents, President Lee and President Obama, who 
already have established a very strong working and personal 
relationship.  President Obama is very much looking forward to an 
opportunity to visit Korea.  This is his first visit to Korea as far 
as I know.  He has a great interest in Korea and great respect for 
Korea and enthusiasm for what Korea represents in the world and what 
it has accomplished.  (U.S. government officials) are having 
in-depth discussions with President Lee Myung-bak's staff on the 
range of subjects (to be discussed during the summit.) We don't have 
an agreed agenda. You can image what's on it.  We have a lot of 
things we are working on together including economic issues  in 
multilateral forum like the G20,  very close coordination on next 
steps related to North Korea, and a range of other bilateral issues 
in which we want to cooperate more closely." 
 
SEOUL 00001784  006 OF 007 
 
 
 
¶Q. There has been little progress on the KORUS FTA even though it 
has been two years since the ROK and the U.S. signed the trade deal. 
 Can we expect surprising news from President Obama during his visit 
to the ROK? 
 
"This is the agreement we all know that was agreed to and signed by 
our two governments over two years ago now.  Since then, we had 
elections in both countries with a change of parties in power, we 
had an economic recession of historic dimensions, and we had 
historic turmoil in the automobile sector, particularly in the U.S. 
So, given all that, over the last two years or so, maybe it was not 
surprising that we are not a little further along in the FTA 
ratification process.  Since January with the Obama Administration 
coming into office, our new U.S. Trade Representative Ron Kirk has 
met with his counterpart Ambassador Kim.  They had good discussions. 
 In September I travelled around the U.S. with Ambassador Han 
Duck-soo and talked about our overall relationship.  The U.S. Trade 
Representative earlier this autumn asked for comments from all 
stakeholders on the FTA.   My sense is that the (comments) were 
overwhelmingly in favor of the FTA.  It is no s-e-c-r-e-t that U.S. 
auto companies have been very hard hit over the last year in this 
recession.  Korean auto companies have done relatively better.  We 
are pleased to see that Korean automakers are making an investment 
in the U.S.  We are committed to reengaging on this and finding the 
right way forward.  Both of our presidents have been very clear that 
this is an FTA that has the potential for very significant 
benefits." 
 
¶Q. Does the U.S. have any post-Kim Jong-il contingency plan or any 
plan for a possible collapse of the North Korean regime? 
 
"In June, our two Presidents agreed, and then put in our Joint 
Vision Statement, our shared and deep desire to see reconciliation, 
peaceful reunification of the Korean Peninsula in a manner 
consistent with democracy and a free market.  As an ally with the 
ROK, we have responsibility to be prepared for any contingency 
(including the death of North Korean leader Kim Jong-il).  But, in 
terms of what we do as diplomats, we deal with the situation we have 
now, we deal with North Korea as it is now.  That's why we are 
trying to be very clear that there is a path that the leadership in 
North Korea can take, which is a diplomatic path of returning to a 
process of denuclearization, returning to a process of implementing 
its commitments made (in the September 19, 2005 Joint Statement and 
the February 13, 2007 agreement.)   So, we are trying, together with 
Seoul and the other partners in the Six-Party Talks, to make very 
clear to the current leadership in Pyongyang that we want to see 
progress now.   We are not waiting for something else to happen. 
We think it's very important that the leadership in North Korea now 
make that choice towards a better future for its people and for its 
country." 
 
¶Q. For some time, there was a perception among foreign firms that 
Korea is a country that is really difficult to do business in.  Do 
you see any improvement or progress made since the inauguration of 
the Lee Myung-bak Administration? 
 
"In the 1980s in Busan, where I dealt with American businesses quite 
a bit, I heard this kind of complaint quite a bit, that it was 
difficult to deal with some of the Korean bureaucracies, rules were 
unclear, and  there was a lot of concern about possible unfavorable 
treatment to foreign businesses.  One heard many complaints like 
this from foreign businesses, including American businesses.  There 
was (also) concern about the labor scene.  I have been very 
impressed since I came back last year... by how much that has 
changed.  So I think, in some way, that the perception that you just 
described is still out there, that in some quarters (doing business 
in Korea) is very tough.  But, in fact, if you talk to the companies 
who are actually doing business here I don't hear that complaint. 
So I think the situation has actually gotten steadily better over 
the years from the point of view of the international business 
environment.  Certainly President Lee Myung-bak and his 
administration have done a number of things that have been 
appreciated by the business community here, including President Lee 
 
SEOUL 00001784  007 OF 007 
 
 
coming to an annual reception of the American Chamber of Commerce 
and giving a speech on his vision of business in Korea.  That meant 
a lot to the business community here.  They really appreciated it. 
They felt like it sent a very positive message throughout the 
bureaucracy that we were working together and that the role of 
foreign businesses, and American businesses, here play a positive 
role.  So I think the atmosphere is actually very good." 
 
¶Q. There is a controversial issue about the ROKG resending its 
troops to Afghanistan. 
 
"The government of the Republic of Korea, as I understand it, 
announced that it intends to prepare to send an increased number of 
both civilians and troops to Afghanistan to assist the people of 
Afghanistan and their efforts at stability and reconstruction.  Many 
countries, I think about 40 countries, are participating in that 
effort.  Speaking for the United States, we welcome Korea's 
announcement that it intends to make an increased contribution.  In 
terms of the political process here that underpins that decision, 
that is the democratic process of the Republic of Korea.   Debate is 
part of the process in any democratic society.  Certainly, within 
the United States, the way forward in Afghanistan is also something 
that is being debated.  We certainly will follow this with interest 
as the Korean government moves forward with this plan." 
 
¶Q. What are the areas you think that Korea should work more to 
become a truly global leader? 
 
 "My own sense is that Korea's image in the world is quite strong 
and has grown even more positive.  People, especially in the U.S., 
know that Korea's economic success and its democratic success are 
growing daily.  I think it is important that Korea is participating 
more actively in the international community and playing more of a 
leadership role that reflects its economic weight such as chairing 
the G20 ." 
 
 
STEPHENS