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UNCLAS SECTION 01 OF 09 SEOUL 001811 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; November 16, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
ROKG Has Contacted Companies 
Since Early This Year to Discuss Sejong City 
 
JoongAng Ilbo 
Birthrate Crisis Forces Tougher Stand on Abortion 
 
Dong-a Ilbo 
Survey: 73 Percent of Respondents Say 
They "Will Not Buy American Cars Even 
if Prices Fall10 Percent" 
 
Hankook Ilbo 
Eight Japanese Tourists among Dead 
in Indoor Shooting Range Fire 
 
Hankyoreh Shinmun 
Broadcasting and Communications Commission Chairman 
Choi Si-jung Primarily Responsible for 
"Illegally Controlling Broadcasting" 
 
Segye Ilbo 
ROKG Overflows with Various Special Zones, 
Innovative and Business Cities 
 
Seoul Shinmun 
ROKG Making All-out Effort to Attract Companies 
to Sejong City 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
According to a military source, North Korea yesterday briefly 
activated its radar systems for surface-to-ship missiles at a 
western coastal site, prompting ROK navy ships to move to safer 
areas. (All) 
 
ROK conservative groups will hold a massive rally on Nov. 19 to call 
for a delay in transferring wartime operational control from the 
U.S. to the ROK. This rally is timed to coincide with President 
Barack Obama's visit to Seoul. (Chosun) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
President Obama, during a Nov. 15 APEC summit in Singapore, unveiled 
his new Asia policy that acknowledged China as a partner and urged 
Asian countries to stop being dependent on exports to the U.S. 
(JoongAng, Hankyoreh) 
 
President Obama also said in a Nov. 14 speech in Japan that the U.S. 
is ready to provide a different future to North Korea if the North 
gives up its nuclear ambitions. (Hankook, Hankyoreh) 
 
 "Conciliatory Gesture Ahead of Bosworth's Visit to 
Pyongyang?:"According to a diplomatic source in Washington, the 
White House has replaced Philip Goldberg, Coordinator for the 
Implementation of UN Sanctions on North Korea, by naming him as 
Assistant Secretary at the Bureau of Intelligence and Research. 
(Chosun) 
 
 
MEDIA ANALYSIS 
-------------- 
 
U.S.-Asia: Pres. Obama Speech in Japan, APEC Summit 
 
All ROK media today covered President Barack Obama's Nov. 14 speech 
 
SEOUL 00001811  002 OF 009 
 
 
in Japan, in which he outlined his "new Asia policy" and 
demonstrated his solidarity with Asia by calling himself "America's 
first Pacific President." 
 
President Obama was widely quoted: "Working in tandem with our 
partners, and supported by direct diplomacy, the U.S. is prepared to 
offer North Korea a different future (if it abandons its nuclear 
ambitions.)  We will not be cowed by threats, and we will continue 
to send a clear message through our actions, and not just our 
words." 
 
Right-of-center JoongAng Ilbo editorialized: "(President Obama's 
speech) is a landmark one, since it stresses cooperation and 
solidarity with Asia, which is emerging as the center of the world. 
We truly hope that President Obama will deliver on the visions he 
presented in his speech, which notably feature his balanced thoughts 
and approaches." 
 
Conservative Dong-a Ilbo's editorial argued: "While talking about 
Asia-focused policy, President Obama mentioned North Korea policy. 
...  This carries all the more weight because President Obama 
presented the resolution of the North Korean nuclear issue as part 
of his efforts to carry out Asia-focused policy. ...  It is up to 
North Korea whether it remains in isolation by holding on to its 
nuclear weapons or embraces a new future.  North Korean leader Kim 
Jong-il should take President Obama's statements seriously and make 
a wise choice." 
 
Left-leaning Hankyoreh Shinmun, meanwhile, carried an editorial 
entitled "Need to Deal Proactively with Obama's Policy of Valuing 
China."  It stated: "President Obama made it clear that the U.S. has 
no intention of checking China by saying, 'Cultivating spheres of 
cooperation with China - not competing spheres of influence - will 
lead to progress in the Asia Pacific.'  This means that the U.S. 
practically acknowledged China as the world's second superpower and 
expressed its intention to expand cooperation with China not only on 
political, economic and environmental issues but also on the 
military issue." 
 
¶N. Korea 
 
Carrying the headline, "Conciliatory Gesture Ahead of Bosworth's 
Visit to Pyongyang?," conservative Chosun Ilbo ran an inside-page 
report quoting a diplomatic source in Washington as saying that 
Philip Goldberg, Coordinator for the Implementation of UN Sanctions 
on North Korea, has been appointed as Assistant Secretary of the 
Bureau of Intelligence and Research at the State Department.  The 
report went on to say: "ROKG and USG officials say Goldberg's 
replacement reflects his personal wish to move to a new post. ... 
Given that the appointment comes at a time when the USG is 
considering dialogue with North Korea, however, it could have a 
positive effect on Special Representative for North Korea Policy 
Stephen Bosworth's visit to the North." 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
OBAMA'S VISIT TO SEOUL AND A NEW HORIZON FOR ROK-U.S. RELATIONS 
(JoongAng Ilbo, November 16, page 35: Excerpts) 
 
By Former Prime Minister Lee Hong-koo 
 
With the U.S.'s waning political and military influence and the 
global financial crisis, we are facing common tasks to seek a new 
world order in an era of multipolarization.  At this time, President 
Obama is emerging as a leader who can open the door to the future 
for the U.S. and the world. 
 
The international community including the ROK has a shared 
understanding of the agenda President Obama has proposed for peace 
and prosperity of mankind.  President Obama reaffirmed his 
commitment to taking the lead over efforts to address the issues of 
climate change, nuclear proliferation and poverty by recognizing 
 
SEOUL 00001811  003 OF 009 
 
 
them as imminent tasks the international community cannot ignore any 
longer.  This position by President Obama helps enhance U.S. 
leadership in international politics and brings positive effects to 
the ROK-U.S. alliance. 
 
Northeast Asia, where President Obama is making a tour, has achieved 
economic growth at the fastest pace, gaining attention as a new 
center of international politics and economy.  However, Northeast 
Asia is also riddled with complicated challenges.  Even though 
Hiroshima was (the first city in history) to suffer from an atomic 
bombing 64 years ago, (North Korea) is threatening nuclear war in 
order to secure its own regime.  Most of all, little progress has 
been made for the unification of the Korean Peninsula.  In a word, 
the ROK and the U.S. as allies face a rough road ahead. 
 
The ROK is fully committed to playing its role to achieve common 
goals along with its allies.  The ROK has decided to sharply 
increase its aid to developing countries and is actively 
participating in international efforts to keep peace in the regions 
plagued by war and terrorism.  The ROK also proactively engages in 
international efforts to cope with climate change by setting "green 
growth" as a central axis of its economic policy.  This 
forward-looking approach is based on our belief that a peaceful and 
fair world order can be achieved through the ROK-U.S. alliance. 
 
The ROK-U.S. alliance is not just a military alliance but a 21st 
century partnership that guarantees security and prosperity and 
creates a new productive world order. 
 
President Obama's visit to the ROK will provide an opportunity to 
demonstrate this future-oriented ROK-U.S. alliance internationally. 
 
 
 
NEED TO DEAL PROACTIVELY WITH OBAMA'S POLICY OF VALUING CHINA 
(Hankyoreh Shinmun, November 16, 2009, Page 27) 
 
In Japan, the first stop in his tour to Asia, U.S. President Barack 
Obama announced an Asia policy of prioritizing (the region) and 
actively participating in Asian issues.  One could say this is a 
reflection of a reality in which the U.S., its power weakening due 
to last year's global financial crisis, has no choice but to deepen 
ties with Asia, whose political and economic presence is growing. 
It was a major foreign policy speech second only to his Prague 
speech in April in which he called for a world without nuclear 
weapons and his June speech in Cairo in which called for dialogue 
and reconciliation with the Muslim world. 
 
Within Obama's Asia policy, the most eye-catching aspect is the 
importance he places on China.  President Obama made it clear that 
the U.S. has no intention of checking China by saying, 'Cultivating 
spheres of cooperation with China - not competing spheres of 
influence - will lead to progress in the Asia Pacific.'  This means 
that the U.S. practically acknowledged China as the world's second 
superpower and expressed its intention to expand cooperation with 
China not only on political, economic and environmental issues but 
also on the military issue.  Not only was this a virtual 
acknowledgement of the prestige of China, which has risen to become 
the world's No. 2 superpower, but is also an expression of 
willingness to further cooperate with China on military issues. 
This is precisely the reason the world has been watching the 
conversations being shared between China's leaders and Obama, who 
kicked off a four-day, three-night visit to China yesterday. 
 
President Obama also revealed his desire to strengthen traditional 
alliances with South Korea and Japan, and a firm attitude regarding 
the North Korean nuclear issue.  Obama once again stressed the 
provision of an expanded U.S. deterrence to aid in protecting South 
Korea and Japan, and called on North Korea to return to the 
Six-Party Talks and keep its prior commitments, including ones 
expressed in the Nuclear Non-Proliferation Treaty (NPT).  This could 
not erase the impression, however, that compared to the 
prioritization of China, the importance of these issues have 
fallen. 
 
SEOUL 00001811  004 OF 009 
 
 
 
Regarding the U.S.-China summit, the thing we must pay most 
attention to is the pending North Korea nuclear issue.  The U.S. and 
China have been leading a line of dialogue since the second half of 
the year.  Next month, Stephen Bosworth, U.S. Special Representative 
for North Korea Policy, will visit North Korea in an attempt to 
restart North Korea-U.S. dialogue.  Meanwhile, the Lee Myung-bak 
Administration is still not abandoning its policy of putting 
pressure on North Korea, and is being pointed to as a source of 
discord between South Korea and China.  The Administration has named 
Ryu Woo-ik, former Chief Presidential Secretary and a close aide to 
President Lee, as its new ambassador to China.  The Lee government 
must use this nomination of a powerful figure as ambassador to China 
to try to create a system of close cooperation with the Chinese 
government, in which Seoul has a strong voice on not only Korean 
issues, but on world issues as well. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
PAYING ATTENTION TO OBAMA'S NEW ASIA POLICY 
(JoongAng Ilbo, November 16, page 34) 
 
U.S. President Barack Obama delivered a historic speech about the 
U.S.'s Asia policy at Suntory Hall in Tokyo last weekend.  Obama 
candidly presented his thoughts on almost all issues including: the 
U.S.'s relations with China, which has emerged as the "G2;" the 
U.S.'s alliance with the ROK and Japan; the North Korean issue; and 
the U.S.'s role in East Asia.  These are the issues which people in 
Asia have been wondering about or paying attention to.  (President 
Obama's speech) is a landmark one, since it stresses cooperation and 
solidarity with Asia, which is emerging as the center of the world. 
We truly hope that President Obama will deliver on the visions he 
presented in his speech, which notably feature his balanced thoughts 
and approaches. 
 
Regarding the U.S.'s relations with China, President Obama announced 
that the U.S. will "pursue pragmatic cooperation with China on 
issues of mutual concern" without containing China.  He emphasized, 
"No one nation can meet the challenges of the 21st century on its 
own," adding, "The U.S. and China will both be better off if we meet 
(these challenges) together."  This signifies that the U.S. will 
acknowledge China as a partner and seek a pragmatic partnership 
through cooperation on global issues.  However, Obama drew a clear 
line on freedom and human rights issues by saying, "The U.S. will 
never waver in speaking up for the fundamental values that we hold 
dear because support for human rights and human dignity is ingrained 
in America." 
 
President Obama said that "a deeper relationship with China" does 
not mean "a weakening of our bilateral alliances," trying to dispel 
concerns about U.S.-China relations among the U.S.'s Asia-Pacific 
allies.  This indicates that the U.S. will be committed to the 
security of its allies such as the ROK, Japan, Australia, Thailand, 
and the Philippines.  In particular, President Obama reiterated that 
bilateral alliances should be based on equality and mutual respect, 
being mindful of Japan's Democratic government, which claims it will 
seek to stand on equal footing with the U.S. 
 
President Obama made his position clear about North Korea.  He said, 
"The path for North Korea to realize this (new) future is clear: a 
return to the Six-Party Talks; upholding previous commitments, 
including a return to the Nuclear Non-Proliferation Treaty; and the 
full and verifiable denuclearization of the Korean Peninsula."  He 
reaffirmed that the U.S. will resolve the North Korean nuclear issue 
through close cooperation with Six-Party members and will achieve a 
nuclear-free North Korea. 
 
President Obama announced, "As an Asia-Pacific nation, the U.S. 
expects to be involved in the discussions that shape the future of 
this region."   In particular, he said that the U.S. looks forward 
to engaging with the East Asia Summit (EAS), which involves 16 
countries including the Association of Southeast Asian Nations 
 
SEOUL 00001811  005 OF 009 
 
 
(ASEAN) members and the ROK, China, India, Australia and New 
Zealand.  This shows that the U.S. is willing to participate in 
discussions on the East Asia community through the EAS.  It is a 
good sign that the U.S. clarified its position on discussions on 
East Asia's integration.  Obama stressed, however, "One of the 
important lessons this recession has taught us is the limits of 
depending primarily on American consumers and Asian exports to drive 
growth."  The ROK and China, which depend heavily on exports, should 
pay special attention to this remark. 
 
 
IT IS TIME FOR N. KOREA TO AWAKE TO A "DIFFERENT FUTURE IF IT 
ABANDONS ITS NUCLEAR AMBITIONS" 
(Dong-a Ilbo, November 16, 2009, Page 35) 
 
U.S. President Barack Obama said during his November 14 speech in 
Tokyo that if North Korea abandons its nuclear development, "the 
U.S. is prepared to offer North Korea a different future."  With 
U.S.-North Korea bilateral dialogue ahead, this signals that 
Washington is not only willing to resolve conflicts with the North 
but is also (prepared) to provide massive aid to the communist 
state.  President Obama emphasized in an earlier interview with 
Yonhap News, "By taking irreversible steps towards the complete 
elimination of its nuclear program, North Korea will be following 
the peaceful path towards security and respect."  He presented a way 
for the North to get out of a total crisis. 
 
President Obama's remarks virtually herald the resolution of the 
nuclear issue by the leaders of the ROK, the U.S., China and Japan. 
After visiting Japan and Singapore, President Obama started his 
three-day trip to China yesterday.  He will visit the ROK on 
November 18-19.  President Obama said, "President Lee and I are in 
full agreement on the need to achieve a comprehensive resolution of 
the nuclear problem."  Now that discussions with Japan are over, the 
remaining task for Obama is to coordinate stances with China. 
Saying, "The U.S. does not seek to contain China, nor does a deeper 
relationship with China mean a weakening of our bilateral 
alliances," President Obama recognized China as a partner for 
cooperation.  Chinese President Hu Jintao is highly likely to 
support President Obama's "carrot" policy toward the North. 
 
While talking about Asia-focused policy, President Obama mentioned 
North Korea policy.  Born in Hawaii and raised in Indonesia, 
President Obama described himself as America's first Pacific 
President.  This carries all the more weight because President Obama 
presented the resolution of the North Korean nuclear issue as part 
of his efforts to carry out Asia-focused policy.  He also mentioned 
"stick" measures.  He said that the U.S. will not be cowed by North 
Korea's nuclear development threats and added, "So long as these 
weapons exist, the United States will maintain a strong and 
effective nuclear deterrent that guarantees the defense of our 
allies - including South Korea and Japan." 
 
It is up to North Korea whether it remains in isolation by holding 
on to its nuclear weapons or embraces a new future.  North Korean 
leader Kim Jong-il should take President Obama's statements 
seriously and make a wise choice.  Although North Korea staged 
military provocations in the Yellow Sea in addition to the second 
nuclear test, the door to dialogue is still open.  If the North 
rejects Obama's offer for dialogue, the international community will 
have no choice but to take stick measures. 
 
 
FEATURES 
-------- 
 
EXPERTS CITE WHY KOREANS REALLY SHUN U.S. CARS 
(Dong-a Ilbo, November 16, 2009, Page 3) 
 
By Reporters Chang Kang-myung and Kim Sang-woon 
 
"Korea must further open up its car market to the U.S.  All we're 
asking for is for our own car companies to be able to compete on a 
level playing field in the Korean market."  This is what U.S. Trade 
 
SEOUL 00001811  006 OF 009 
 
 
Representative Ron Kirk told a dinner meeting of the Korea-U.S. 
Business Council Nov. 5. 
 
"Korea has been bashing foreign cars by mobilizing non-tariff 
barriers.  The Korea-U.S. free trade agreement must be revised." 
This is what 12 U.S. senators and Congressmen said in a letter to 
Kirk Nov. 6. 
 
Many Korean experts say these comments show U.S.  ignorance of the 
Korean market at the same time as  its attempt to appeal to American 
voters. 
 
Why American cars are unpopular in Korea 
 
In a survey of 27 experts in Korea conducted by the industrial news 
desk of Dong-a Ilbo, 18 said U.S. cars are unpopular in Korea 
because of "problems with products."  In particular, they noted that 
the overall quality of American cars is poor and that they are too 
big with low fuel efficiency.  Kim Ki-chan, Chairman of the Korea 
Academy of Motor Industry, said, "American carmakers have focused on 
financing rather than the products themselves," adding, "Lack of 
competitiveness at plants can be seen in the vehicles." 
 
Many critics also said American cars do not cater to Korean tastes. 
As for luxury vehicles, Koreans like a stately and dignified look, 
but American cars are seen as too decorative by Koreans.  For 
example, a U.S. undersecretary-level official reportedly said, "Why 
would a vehicle unpopular in the U.S. sell well in Korea," after 
hearing about an American model popular in Korea while visiting 
Seoul. 
 
In a survey of general Korean consumers, 16.8 percent cited poor 
design as why American cars do not sell well in Korea.  Another 18.7 
percent said they would buy other cars even if American models were 
sold 10 percent cheaper, citing poor design. 
 
Notably, American cars with poor gas mileage have grown less popular 
around the world in the wake of the global financial crisis amid 
high oil prices last year and this year.  Hyundai Motor and Kia 
Motors, with their strong lineup of smaller vehicles, have made 
great strides abroad, after General Motors and Chrysler underwent 
bankruptcy protection and Ford struggled due to a managerial crisis. 
 
 
No notable trade barriers 
 
Most experts also brushed aside the notion of trade barriers in 
Korea.  On trade barriers other than tariffs, if any, nine (33.3 
percent) cited car standards and regulations such as  safety and 
environmental (concerns), while 10 (37 percent) noted consumer taste 
and public sentiment.  Kang Cheol-goo, Director at the Korea 
Automobile Manufacturers Association, said, "Since countries have 
different climates and driving cultures, the standards and 
regulations for vehicle safety and the environment should be 
different," adding, "When Korean automakers export cars, they also 
meet the standards of the importing country. These cannot be 
considered trade barriers." 
 
As for consumer taste and public sentiment, another expert said, 
"They could be an obstacle to selling American cars in Korea, but I 
wonder if we can call it a trade barrier."  "Should the Korean 
government go so far as to stage a campaign to promote purchase of 
U.S. cars?"  An import car industry source said, "In the past, there 
were practical barriers, including a ban on advertisements for 
imported cars," adding, "I don't see any notable barriers other than 
tariffs."  Four experts (14.8 percent) cited no notable trade 
barriers. 
 
Sales of European, Japanese cars surging 
 
Critics also said that even if there are trade barriers in the 
Korean auto market, European and Japanese cars are seeing their 
market shares rise.  According to the Korea Automobile Importers and 
Distributors Association, imported vehicle sales in Korea increased 
 
SEOUL 00001811  007 OF 009 
 
 
from 19,481 units in 2003, or 1.9 percent of the market, to 61,648 
last year, or 6 percent.  Imported vehicle sales have continued to 
set new records every year since 2002. 
 
The sales volume of European cars in Korea increased from 12,535 
units (1.2 percent) in 2003 to 32,756 (3.2 percent) last year.  Over 
the same period, that of Japanese cars surged from 3,774 (0.4 
percent) to 21,912 (2.1 percent) units.  The sales volume of 
American cars marginally increased from 3,172 (0.3 percent) to 6,980 
units (0.7 percent) over the same period.  The new BMW series sold 
1,578 vehicles in Korea from January through October this year, the 
fourth largest by volume in a global market.  The same tariff rate 
is levied on all import vehicles. 
 
Except for GM-Daewoo Auto & Technology's vehicles, U.S. car brands 
in Korea brought through official import channels are Chrysler, Jeep 
and Dodge imported by Chrysler Korea, Ford and Lincoln by Ford 
Korea, and Cadillac and Saab by GM Korea. 
 
 
FULL TEXT OF OBAMA'S INTERVIEW WITH YONHAP NEWS AGENCY 
(Yonhap News, November 13, 2009) 
 
The following is the full text of U.S. President Barack Obama's 
interview with Yonhap News Agency. 
 
(President Obama) I am very much looking forward to my trip to Asia 
and visiting Seoul and meeting with President Lee (Myung-bak). 
President Lee and I have established a very strong working 
relationship, which I think is quite evident in our close 
coordination on global issues, particularly on North Korea.  So let 
me first start with your question on North Korea. 
 
(Yonhap) Mr. President.  What is your view of North Korea's nuclear 
and missile programs?  Are you prepared to hold bilateral talks with 
North Korea?  Also, do you think the Six-Party Talks will work to 
denuclearize the North or do you have any other solutions in mind if 
the talks fail? 
 
(President Obama) North Korea's nuclear and missile capabilities are 
a grave concern, not only to the Republic of Korea and the United 
States, but to the international community.  This is an issue that 
President Lee and I have discussed in depth and we will hold 
consultations on this and other subjects in Seoul later this month. 
President Lee and I are in full agreement on the need to achieve a 
comprehensive resolution of the nuclear, missile, and proliferation 
problems, and cooperation between our two governments is extremely 
close.  We believe the Six-Party Talks are the best framework for 
reaching peaceful resolution and that the September 2005 Joint 
Statement clearly lays out the goals we must achieve.  We are open 
to a bilateral meeting as part of the Six-Party process if that will 
lead to an expeditious resumption of the denuclearization 
negotiations. 
 
North Korea's attempt to acquire weapons of mass destruction and the 
means to deliver them is destabilizing and represents a threat to 
peace and security.  This is why the United Nations Security Council 
adopted strong measures under Resolution 1874 and why the UN members 
states are enforcing the provisions of those resolutions.  Pursuit 
of nuclear weapons and missile delivery systems makes North Korea 
and the region less secure, whereas negotiations in the Six-Party 
process to achieve the peaceful denuclearization of the Korean 
Peninsula can bring security and prosperity to North Korea and the 
region. 
 
This is the choice that North Korea faces.  North Korea has the 
opportunity to move towards acceptance by the international 
community if it will comply with its international obligations and 
live up to its own commitments.  By taking irreversible steps 
towards the complete elimination of its nuclear program, North Korea 
will be following the peaceful path towards security and respect. 
 
(Yonhap) You supported South Korea's bid to host the G-20 summit in 
November next year.  What kind of role do you expect South Korea to 
 
SEOUL 00001811  008 OF 009 
 
 
play in the G-20 forum? 
 
(President Obama) South Korea's emergence as host of the G-20 
leaders meeting next year is the latest evidence that South Korea is 
playing an important leadership role on the world stage.  President 
Lee has done a superb job steering South Korea's economy through the 
economic downturn and now on an upward trajectory, and I am looking 
forward to his continued strong leadership in the Asia Pacific 
region on the economic policy front. 
 
South Korea's hosting of the G-20 next year is also a prime example 
of the economic success it has had in a relatively short period of 
time and its movement into the ranks of the world's leading 
economies.  South Korea's success serves as a prime example for 
still developing economies and its hosting of the G-20 next year is 
demonstrative of the global leadership role that it is undertaking. 
I am pleased that South Korea has agreed to host the G-20 meeting 
next year and the US will help support their efforts to ensure that 
the meeting is a success. 
 
 
SURVEY: 73 PERCENT OF RESPONDENTS SAY THEY "WILL NOT BUY AMERICAN 
CARS EVEN IF PRICES FALL 10 PERCENT" 
(Dong-a Ilbo, November 16, 2009, Front Page) 
 
By Reporters Chang Kang-myung and Kim Sang-woon 
 
With U.S. President Barack Obama's visit to the ROK drawing nearer, 
some U.S. lawmakers argue, "The ROK should open its doors wider to 
U.S. vehicles."  It has been found, however, that ROK consumers and 
experts on commerce and automobiles believe, "The reason why U.S. 
vehicles do not sell well in the ROK is due to their lack of 
competitiveness."  Furthermore, seven out of ten ROK consumers 
answered that even if U.S. car prices fell by 10 percent, they would 
still purchase Korean, Japanese or European cars, instead of U.S. 
vehicles. 
 
The industrial news desk of Dong-a Ilbo and EnClean.com, a SK Energy 
portal site, conducted a survey of 513 members of the Internet site 
by e-mail on November 10-11.  According to the results, 49.4 percent 
of the respondents cited problems with products - such as design 
(16.8 percent), fuel efficiency (12.7 percent), functions (7.4 
percent) and brand image (7.2 percent) - as why U.S. cars do not 
sell well in the ROK.  90.8 percent of those surveyed possess their 
own cars, and among them, 41.2 percent have mid- and large-size cars 
with engine displacement of more than 2,000cc. 
 
A total of 72.9 percent of the respondents said that even if U.S. 
car prices dropped by 10 percent, they would still buy Korean, 
European or Japanese vehicles.  Based on this result, it can be 
predicted that even if the current eight-percent tariff on U.S. 
autos is eliminated, their sales in the ROK will not increase much. 
The car import industry estimates that even if the ROK-U.S. Free 
Trade Agreement (FTA) comes into force and removes tariffs on U.S. 
cars, their actual market prices will drop by only 4 to 6 percent. 
Lee Hang-koo, a researcher at the Korea Institute for Industrial 
Economics and Trade, pointed out, "Even in the U.S., Asian vehicles 
rank high in consumer satisfaction surveys." 
 
Regarding the auto section of the ROK-U.S. FTA, 12 (44.4 percent) 
out of 27 experts of automobiles and commerce, including 12 
officials in the car import industry, said, "The levels of market 
opening in the ROK and the U.S. are similar," and 9 people (33.3 
percent) responded, "The ROK's market opening level is higher." 
Only two answered, "The U.S.'s market opening level is higher." 
 
Last year, the ROK exported over 590,000 assembled cars to the U.S. 
while the U.S. exported only 8,864 assembled cars to the ROK.  The 
share of U.S. cars in the ROK market has remained below 1 percent 
for several years. 
 
Some experts argue that domestic sales by GM Daewoo, the automaker 
in which General Motors has a 70.1 percent stake, should be counted 
into the U.S.'s share of the ROK auto market.  In the ROK market 
 
SEOUL 00001811  009 OF 009 
 
 
alone, GM Daewoo sold over 110,000 cars (market share:  10.1 
percent) last year.  When Hyundai-Kia Automotive Group's 6 to 8 
percent market share in the U.S. is reported, the company's output 
in Alabama is counted in.  Lee Sang-ho, a professor of economics at 
Sejong University, said, "Locally produced GM Daewoo (vehicles 
should be included in the sales of U.S. automakers," adding, "The 
ROKG should actively publicize this." 
 
 
STEPHENS