VZCZCXRO4061
OO RUEHGH
DE RUEHUL #1794/01 3140807
ZNR UUUUU ZZH
O 100807Z NOV 09
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6190
RUCPDOC/USDOC WASHDC 9380
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 0487
RUEHBJ/AMEMBASSY BEIJING 6900
RUEHKO/AMEMBASSY TOKYO 6964
RUEHGH/AMCONSUL SHANGHAI 1469
RUEHSH/AMCONSUL SHENYANG 5277
RUEHIN/AIT TAIPEI 4223
RUEHGP/AMEMBASSY SINGAPORE 7435
RUCNDT/USMISSION USUN NEW YORK 1711
RUEHGV/USMISSION GENEVA 3017
RUEHLO/AMEMBASSY LONDON 2096
RUEHFR/AMEMBASSY PARIS 2703

UNCLAS SECTION 01 OF 05 SEOUL 001794 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; November 10, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
Blue House Sought S-e-c-r-e-t Meeting with Heads of Big Four 
Conglomerates; Attention Focused on Whether the Meeting was Related 
to Sejong City Plan 
 
 
JoongAng Ilbo, All TVs 
ROKG Trying to Speed Up New Plans for Sejong City 
 
Dong-a Ilbo 
20 Former CFC Deputy Commanders Send Letters to Presidents Lee and 
Obama Calling for Review of OPCON Transfer 
 
Hankook Ilbo 
New Flu Death of Actor's Son Causes Dread for Parents 
 
 
Hankyoreh Shinmun 
Main Opposition Democratic Party Seeks Legal Battle to Halt ROKG's 
Four-River Restoration Project 
 
 
Segye Ilbo 
Education Ministry to Enhance Parent Participation in School 
Management and Operation 
 
Seoul Shinmun 
Board of Audit and Inspection: "Misguided ROKG Public Rental Housing 
Project May Trigger Oversupply and Supply-Demand Imbalance in Rental 
Housing Market" 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
According to Blue House Spokesperson Kim Eun-hye, Presidents Lee 
Myung-bak and Barack Obama will seek ways to move forward with the 
ratification of the KORUS FTA during their Nov. 19 summit in Seoul. 
(JoongAng, Segye, Seoul) 
 
According to a military source, 20 former deputy commanders of the 
ROK-U.S. Combined Forces Command (CFC) recently sent letters to 
Presidents Lee and Obama urging them to review the planned transfer 
of wartime operational control from the U.S. to the ROK. They also 
asked the Presidents to discuss the issue during their upcoming 
summit. (Dong-a) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-President Obama's Asia Trip 
---------------------------- 
Right-of-center JoongAng Ilbo, conservative Segye Ilbo and moderate 
Seoul Shinmun ran inside-page reports quoting Blue House Spokeswoman 
Kim Eun-hye as saying yesterday: "We are hoping that President Obama 
will express a more forward-looking position on the KORUS FTA, and 
are working toward that end." 
 
Conservative Chosun Ilbo editorialized: "The U.S. has objected to 
trade protectionism and led the solidarity among the major 20 
economies in overcoming the global financial crisis.  Accordingly, 
it is unreasonable for the U.S., an advocate of global economic 
recovery and trade expansion, to refuse to ratify the KORUS FTA, the 
largest trade agreement for the U.S. since the North American Free 
Trade Agreement (NAFTA) of 1992.  ...  The upcoming Nov. 19 ROK-U.S. 
summit should put the ratification of the KORUS FTA before any other 
agenda items." 
 
Conservative Dong-a Ilbo argued in an editorial: "Conscious of trade 
 
SEOUL 00001794  002 OF 005 
 
 
unions, President Obama has taken a passive stance on free trade. 
In September, he even raised tariffs on imported tires from four 
percent to 35 percent to prevent cheaper Chinese tires from flooding 
the U.S. market.  If he hopes to reaffirm U.S. support for free 
trade, he should prove it during his Nov. 13-19 Asia tour." 
 
Right-of-center JoongAng Ilbo carried an editorial entitled "Things 
Obama Should Do during His First Asia Trip."  It said: "President 
Obama should focus on dispelling some concerns and misunderstandings 
about U.S.-China relations by making sure that the U.S. and China 
are strategic partners who share the burden for global issues.  ... 
Furthermore, President Obama needs to come up with a 'grand vision' 
for Korean Peninsula issues, including the North Korean nuclear 
issue.  With discussions on regional integration gaining momentum, 
the U.S.'s influence in East Asia will inevitably wane. ...  If the 
U.S. wants to remain influential in the Asia-Pacific region, 
President Obama should use this visit to clarify his position and 
actively participate in discussions on regional integration in East 
Asia." 
 
-N. Korea 
--------- 
With regard to Special Representative for North Korea Policy Stephen 
Bosworth's impending visit to North Korea, moderate Hankook Ilbo 
editorialized: "Given the nature of the upcoming U.S.-North Korea 
dialogue, it is difficult to expect the meeting to achieve 
significant progress on the North Korean nuclear issue.  U.S. Deputy 
Secretary of State James Steinberg said on November 8 that 
U.S.-North Korea dialogue 'is not a negotiation' and that 
'substantial issues will be discussed through the Six-Party Talks.' 
... However, the North, which has greatly desired bilateral dialogue 
with the U.S., inevitably has high expectations of the talks.  How 
many of these expectations the U.S. will meet will determine the 
outcome of the bilateral talks." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
STEPS NEEDED TO RATIFY FTA 
(Dong-a Ilbo, November 10, 2009, Page 35) 
 
Korea and the United States signed a free trade agreement in June 
¶2007.  After delaying parliamentary ratification for more than two 
years, the two sides have begun taking steps to get the deal 
approved.  The head of the U.S. National Economic Council, Lawrence 
Summers, said Friday, "The U.S. government has prepared itself for 
the ratification of the Korea-U.S. FTA."  The Obama Administration, 
however, has taken a passive stance toward the agreement and certain 
figures in Washington say Seoul must open up the Korean auto market 
further.  In that context, therefore, Summers' comment can 
definitely be considered as significant progress.  Seoul also plans 
to discuss the matter with President Obama, who is scheduled to make 
a two-day visit to Korea from Nov. 18. 
 
A Korean proverb says, "Nothing is complete without the finishing 
touches."  The bilateral agreement is no different.  Even if the 
agreement benefits both nations, it is useless unless it is put into 
effect.  It would be a huge misfortune if the two nations cannot 
benefit from their agreement designed to raise their exports and 
strengthen their strategic partnership.  Certainly, the two nations 
have been preoccupied with the launch of new administrations and 
dealing with the global economic crisis.  Nevertheless, if they keep 
hesitating on ratification, their determination to have the deal 
take effect would be in doubt.  If Washington fails to make a 
sincere effort to ratify the accord, it has no right to urge the 
expansion of global trade at the Group of 20 summit in Korea next 
year. 
 
Conscious of trade unions, President Obama has taken a passive 
stance on free trade.  In September, he even raised tariffs on 
imported tires from four percent to 35 percent to prevent cheaper 
Chinese tires from flooding the U.S. market.  If he hopes to 
reaffirm U.S. support for free trade, he should prove it during his 
 
SEOUL 00001794  003 OF 005 
 
 
Nov. 13-19 Asia tour. 
 
When Korea and the European Union tentatively signed their free 
trade agreement Oct. 15, U.S. media criticized the Obama 
Administration, saying the world is moving forward while the U.S. 
acts like Hamlet.  According to a survey conducted by Washington, 92 
percent of the industries to be affected by the agreement supported 
it.  Only a few, including automakers, opposed it.  Moreover, 88 
congressmen recently urged Obama to put the agreement before 
Congress for ratification before his summit with President Lee 
Myung-bak.  Against this background, it is high time that Congress 
deal with the accord. 
 
Korea's National Assembly should also rush to ratify the agreement 
at its plenary session.  A free trade agreement between Korea and 
India will take effect in January next year.  Moreover, the Korea-EU 
agreement will begin to be implemented next year in July and August. 
 So the Korea-U.S. pact should also take effect next year.  When 
Korea signed the agreement with the U.S., it was the envy of its 
neighbors.  If the National Assembly hesitates to ratify the accord, 
the country's rivals will laugh at Korea. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
UPCOMING KOREA-U.S. SUMMIT AN OPPORTUNITY TO RATIFY BILATERAL FTA 
(Chosun Ilbo, November 10, 2009, Page 35) 
 
With the leaders of Korea and the United States set to hold a 
bilateral summit on Nov. 19th, 88 U.S. congressmen from both the 
Democratic and Republican parties wrote to the White House last 
Friday calling for prompt ratification of the Korea-U.S. Free Trade 
Agreement (FTA).  The same day, Lawrence Summers, Director of the 
White House's National Economic Council, told a gathering of 
American and Korean business officials, "The U.S. government is 
preparing for the ratification of the Korea-U.S. Free Trade 
Agreement." 
 
Korea and the U.S. signed the bilateral trade pact in June 2007. 
But two and a half years later, the FTA still remains unratified. 
In January, a standing committee at the Korean National Assembly 
passed the bilateral free trade pact amid violent clashes between 
ruling and opposition parties and submitted it to the plenary 
session of parliament for ratification.  But in the U.S., the FTA 
has not even been presented to Congress and has been on hold since 
the 2008 Presidential election.  U.S. President Barack Obama voiced 
dissatisfaction over the FTA while running for the presidency, 
saying the automotive and beef portions of the agreement were 
"unfair."  After entering office, Obama has put priority on health 
care reform and other domestic issues, leaving the bill sitting in 
Congress. 
 
The U.S. has objected to trade protectionism and led the solidarity 
among the major 20 economies in overcoming the global financial 
crisis.  Accordingly, it is unreasonable for the U.S., an advocate 
of global economic recovery and trade expansion, to refuse to ratify 
the KORUS FTA, the largest trade agreement for the U.S. since the 
North American Free Trade Agreement (NAFTA) of 1992.  The U.S. would 
also miss out on real benefits of the FTA, such as the so-called 
"first-mover advantage," where companies that are the first to enter 
a particular market reap the benefits of investment and trade. 
Korea has already moved forward in seeking similar international 
trade agreements with India and the European Union.  If ratification 
of the Korea-U.S. Free Trade Agreement continues to be delayed and 
other foreign companies enter the Korean market first, then U.S. 
businesses will be the ones suffering losses.  The upcoming Nov. 19 
ROK-U.S. summit should put the ratification of the KORUS FTA before 
any other agenda items. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
 
SEOUL 00001794  004 OF 005 
 
 
PREPARE FOR SITUATION FOLLOWING IMPENDING U.S.-N. KOREA DIALOGUE 
(Hankook Ilbo, November 10, 2009, Page 39) 
 
The schedule and format of U.S.-North Korea bilateral dialogue is 
beginning to take shape.  The rough picture emerging from Washington 
is that U.S. Special Representative for North Korea Policy Stephen 
Bosworth will visit Pyongyang late this month or early next month at 
the earliest and meet with North Korea's First Vice Foreign Minister 
Kang Sok-ju.  It is reported that the U.S. Department of State will 
soon announce the schedule for Bosworth's visit to North Korea. 
 
The North and the U.S. engaged in a tense tug of war to the last 
minute over the agenda and number of the meetings.  The fact that 
the announcement about the meeting schedule is impending indicates 
that most contentious issues have been resolved.  North Korea had 
initially demanded that more than two meetings be held.  However, 
increasing the number of the meetings will only raise suspicion over 
Pyongyang's intention to buy time and will not help resolve the 
nuclear issue.  It is desirable that the two nations should have 
substantial talks at their first meeting and then move straight 
toward the resumption of the Six-Party Talks. 
 
Given the nature of the upcoming U.S.-North Korea dialogue, it is 
difficult to expect the meeting to achieve significant progress on 
the North Korean nuclear issue.  U.S. Deputy Secretary of State 
James Steinberg said on November 8 that U.S.-North Korea dialogue 
"is not a negotiation" and that "substantial issues will be 
discussed through the Six-Party Talks."  This means that Washington 
regards bilateral dialogue with Pyongyang as a stepping stone to 
North Korea's return to the Six-Party Talks.  However, North Korea, 
which has greatly desired bilateral dialogue with the U.S., 
inevitably has high expectations of the talks.  How many of these 
expectations the U.S. will meet will determine the outcome of the 
bilateral talks.  If North Korea wants to get what it wants, it 
should make clear its willingness to rejoin the Six-Party Talks. 
Trust built between the U.S. and North Korea at their bilateral 
talks will be an important factor in achieving progress at the 
future Six-Party Talks. 
 
The ROKG should try to prepare for the situation following 
U.S.-North Korea dialogue.  It should think about how it will take a 
leading role when the Six-Party Talks restart, instead of remaining 
on the sidelines.  The ambitious "Grand Bargain" proposal is good, 
but we should find a way to advance the Six-Party Talks in a 
practical manner.  Seoul needs a creative ability to identify the 
demands of Six-Party countries, including the North, and mediate 
their interests. 
 
 
THINGS OBAMA SHOULD DO DURING HIS FIRST ASIA TRIP 
(JoongAng Ilbo, November 10, 2009, page 46) 
 
U.S. President Barack Obama will embark on his first Asian trip 
since taking office.  President Obama will attend the Asia-Pacific 
Economic Cooperation (APEC) summit in Singapore from November 14-15, 
and also will visit the ROK, China and Japan.  Obama's visit comes 
at a time when East Asia is undergoing considerable changes such as 
the rise of China, a change of power in Japan, a more precarious 
situation on the Korean Peninsula and intense discussions on 
regional integration.  Therefore, his visit carries special meaning, 
unlike visits by previous U.S presidents.  Attention is also turning 
to what approach the U.S. will take to develop relations with East 
Asia, which is emerging as a global hub. 
 
China's rapid rise necessitates a fundamental change in the U.S.'s 
strategy for East Asia.  The "G2," which refers to the U.S. and 
China, has taken hold as an international political term.  The U.S. 
considers China a partner for cooperation rather than trying to keep 
the country in check.  In the wake of the global financial meltdown, 
the economic symbiotic relationship between the U.S. and China has 
deepened.  President Obama should focus on dispelling some concerns 
and misunderstandings about U.S.-China relations by making sure that 
the U.S. and China are strategic partners who share the burden for 
global issues. 
 
SEOUL 00001794  005 OF 005 
 
 
 
A strategic partnership between the U.S. and China is a new 
challenge to the U.S.-ROK alliance and U.S.-Japan alliance.  In 
particular, with Democratic Party leader Hatoyama Yukio assuming 
power in Japan, relations between the U.S. and Japan have been 
unstable.  Prime Minister Hatoyama wants to stand on an equal 
footing with the U.S.  Even though Hatoyama says there is no change 
in his basic concept that the U.S.-Japan alliance is the cornerstone 
of Japan's diplomacy, he still claims that Japan has to lay the 
diplomatic groundwork for a new East Asian Community to be centered 
around the ROK, China and Japan in order to be less dependent on the 
U.S.  The U.S.-ROK alliance has changed from a defense alliance 
against North Korea to a 21st century future-oriented alliance that 
jointly addresses global issues.  President Obama should lay out a 
clear blue print for the rationale and role of the ROK-U.S. alliance 
and U.S.-Japan alliance in the G2 era.  Furthermore, President Obama 
needs to come up with a 'grand vision' for Korean Peninsula issues, 
including the North Korean nuclear issue.  With discussions on 
regional integration gaining momentum, the U.S.'s influence in East 
Asia will inevitably wane.  China, which aims to take the lead over 
regional integration, wants to only include ASEAN, the ROK, China 
and Japan in the East Asia community.  Hatoyama has does not yet 
have a clear vision of the scope of the East Asia community. 
Australian Prime Minister Kevin Rudd wants the U.S. to join an Asia 
Pacific Community (APC).  Six Asian and Pacific countries are 
members of the G20, and they will wield greater power as regional 
integration speeds up.  If the U.S. wants to remain influential in 
the Asia-Pacific region, President Obama should use this visit to 
clarify his position and actively participate in discussions on 
regional integration in East Asia. 
 
 
STEPHENS