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UNCLAS SECTION 01 OF 15 SEOUL 001836 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; November 20, 2009 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo, Dong-a Ilbo, Segye Ilbo, Seoul Shinmun, All TVs 
President Lee: "Seoul Willing to Talk Again with Washington 
on Automobiles" 
 
JoongAng Ilbo 
Foreign Language High Schools Vow to Do Away with English Listening 
and Oral Exams from Admission Procedures 
 
Hankook Ilbo, Hankyoreh Shinmun 
President Lee Hints at Additional Negotiations 
on Automobile Issue 
 
 
DOMESTIC DEVELOPMENTS 
--------------------- 
 
Presidents Lee Myung-bak and Barack Obama, during yesterday's summit 
in Seoul, agreed to work together to move the KORUS FTA forward. 
(All) 
 
President Obama said during a joint press conference following the 
summit: "We will be sending (Special Representative for North Korea 
Policy) Ambassador Bosworth to North Korea on Dec. 8 to engage in 
direct talks with the North Koreans."(All) 
 
A Blue House official said yesterday that President Lee's remark, 
"If the automobiles are a problem, we are willing to talk about it," 
does not mean renegotiation of the KORUS FTA, adding: "What he means 
is that we are willing to listen to what the U.S. concerns are for 
the automotive industry." (JoongAng, Segye) 
 
In a related development, local experts speculated that Seoul may 
make concessions in the automobile sector in exchange for 
compensation in the agricultural and service sectors. (Chosun) 
 
 
 
MEDIA ANALYSIS 
-------------- 
 
-President Obama in ROK 
------------------------ 
The ROK media was dominated by coverage of yesterday's summit in 
Seoul between Presidents Lee Myung-bak and Barack Obama. Some of the 
media reported that the two leaders agreed to work together to move 
the KORUS FTA forward and to push for a comprehensive "grand 
bargain" to resolve the North Korean nuclear issue.  Other media, 
however, noted that while President Lee used the term "grand 
bargain" in his statement three times, President Obama did not use 
the term. 
 
Coverage highlighted the Presidents' statements during a joint press 
conference following the summit: "We will be sending (Special 
Representative for North Korea Policy) Ambassador Bosworth to North 
Korea on Dec. 8 to engage in direct talks with the North Koreans;" 
"One of my goals (regarding the ratification of the KORUS FTA) is 
to... make sure that we can create the kind of win-win situation 
that I know President Lee is interested in seeing as well" 
(President Obama); and "If the automobiles are a problem, we are 
willing to talk about it;" "These negotiations for denuclearization 
take time and may be difficult, but it must happen and I am 
confident it will." (President Lee) 
 
According to media reports, it is the first time that the U.S. made 
public the date of the mission aimed at persuading North Korea to 
return to the Six-Party Talks.  Left-leaning Hankyoreh Shinmun 
quoted a local pundit as commenting that President Obama's 
announcement of the trip in Seoul showed his determination about 
direct talks with North Korea. 
 
 
SEOUL 00001836  002 OF 015 
 
 
Newspapers carried the following headlines: "President Lee: 'Seoul 
Willing to Talk Again with Washington on Automobiles'" (conservative 
Chosun Ilbo, Dong-a Ilbo and Segye Ilbo); President Lee Hints at 
Additional Negotiations on Automobile Issue" (moderate Hankook Ilbo, 
left-leaning Hankyoreh Shinmun); and "ROK, U.S. Agree to Push for 
Comprehensive 'Grand Bargain' to Resolve N. Korea's Nuclear Issue" 
(moderate Seoul Shinmun) 
 
Conservative Chosun Ilbo editorialized: "During this Asian tour, 
President Obama witnessed 'China's rise' and 'Japan's changed 
attitude' toward the U.S. ... The ROK and the U.S. should use the 
'2+2' (high-level security and defense) talks (they agreed to hold 
next year) as an avenue for strategic dialogue to discuss the 
overall political situation in East Asia, including changes in China 
and Japan.  The ROK-U.S. alliance should not and cannot remain a 
relationship in which the U.S. supports the ROK and the ROK relies 
on the U.S.  This is the alliance's future environment." 
 
An editorial in right-of-center JoongAng Ilbo observed: "The summit 
sent a clear message to North Korea that it must not think about 
rupturing the U.S.-ROK alliance by trying to deal directly with the 
U.S.  For North Korea, the only remaining path is returning to the 
Six-Party Talks and declaring its irreversible and verifiable 
nuclear dismantlement. ...  The expected opposition to the trade 
pact by the U.S. auto industry and unions remains an obstacle, but 
that's not something to be resolved through renegotiation.  The 
problem can only be resolved when U.S. automakers produce cars that 
are attractive to the Korean market." 
 
Conservative Dong-a Ilbo argued in an editorial: "President Obama 
mentioned the U.S. trade imbalance with Asia as an obstacle to 
ratifying the KORUS FTA. ... While the U.S. trade surplus with China 
is $300 billion and with Japan (it is) $70-80 billion, Korea's trade 
surplus with the U.S. is merely $8 billion.  Given the money the 
U.S. makes through investment companies in the ROK or in the service 
sector, bilateral trade is pretty balanced.  The U.S. argument for 
additional negotiations because of the trade imbalance is not 
convincing." 
 
Left-leaning Hankyoreh Shinmun editorialized: "There is a great 
likelihood that the start of U.S.-North Korea dialogue will lead to 
a resumption of the Six-Party Talks and Japan-North Korea talks. ... 
What is worrisome is the hard-line attitude of our government toward 
North Korea, which is completely preoccupied with its policy of 
demanding that North Korea first dismantle its nuclear program." 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
ROK, U.S. LEADERS SHOW RESOLUTE ATTITUDE TOWARD N. KOREA 
(Hankook Ilbo, November 20, page 39) 
 
Yesterday's summit between ROK President Lee Myung-bak and U.S. 
President Barack Obama yielded good results.  The two leaders had a 
shared understanding of their approach to the North Korean nuclear 
issue, which is at the core of (the two nations') attention.  They 
also agreed to work together to move the Korea-U.S. Free Trade 
Agreement (KORUS FTA) forward.  It is significant that both leaders 
agreed to further develop (the two nations') partnership into an 
exemplary strategic alliance of the 21st Century by faithfully 
implementing the "Joint Vision for the Alliance" adopted at the June 
16 summit.  Presidents Lee and Obama made no official mention of 
other delicate issues such as the ROK's troop deployment to 
Afghanistan.  But we expect the ROK and the U.S. will find common 
ground (on these issues) based on mutual understanding and 
cooperation. 
 
During a press conference following the summit, President Obama 
said, "President Lee and I are in full agreement on our common 
approach going forward (regarding the North Korean nuclear issue.)" 
This remark dispels misunderstanding and discord that have been 
brewing over a comprehensive "grand bargain" President Lee proposed 
in June.  President Obama also showed the same position (on the 
 
SEOUL 00001836  003 OF 015 
 
 
North Korean issue) as President Lee when he strongly criticized 
North Korea for making little progress on key issues by alternating 
(between) provocations and conciliatory gestures, while just 
expecting concessions from other countries. 
 
In addition, during the press conference, President Obama unveiled 
U.S. Special Representative for North Korea Policy Stephen 
Bosworth's specific schedule for his visit to North Korea next 
month.  Above all, the announcement highlights the close partnership 
between the ROK and the U.S. as well as the ROK's role in the 
process of resolving the North Korean nuclear issue.  Considering 
that Pyongyang has long desired Ambassador Bosworth's visit, by 
releasing the schedule in person, one could infer that President 
Obama lent some power to Ambassador Bosworth and at the same time 
showed regard for the Kim Jong-il regime. 
 
Now the world's attention will focus on how sincere the North will 
be at bilateral dialogue with Bosworth's delegation.  Pyongyang has 
said that after confirming the U.S.'s willingness to abandon its 
hostile policy (toward the North) through U.S.-North Korea bilateral 
dialogue, it will decide whether to return to the Six-Party Talks. 
Now is the time (for North Korea) to make clear whether it truly 
intends to give up its nuclear ambitions.  As President Obama 
repeatedly emphasized during his Asia trip, there are two roads 
ahead of North Korea: (1) confrontation, or (2) survival through 
nuclear dismantlement.  We, once again, urge the North to make a 
wise decision. 
 
 
KOREA, U.S. MUST THINK ABOUT STRENGTHENING THE ALLIANCE 
(Chosun Ilbo, November 20, 2009, Page 35) 
 
President Lee Myung-bak, speaking at a press conference Thursday 
with U.S. President Barack Obama, said, "The relationship between 
our two countries is excellent and stands stronger than ever."  Lee 
has met Obama three times over the last 10 months.  "Obama's visit 
to Seoul is the last - and perhaps easiest - leg of an Asia trip in 
which he was forced to deal with a newly assertive Japan and an 
increasingly powerful China," The New York Times wrote. 
 
During this Asian tour, President Obama witnessed 'China's rise' and 
'Japan's changed attitude' toward the U.S.  For more than half a 
century, Japan was America's closest ally in Asia, but recently 
announced it would seek a more "equal relationship" with the U.S., 
sending bilateral relations into uncharted waters.  During his China 
visit, Obama avoided mentioning sensitive topics, and Beijing, which 
has become the world's largest holder of U.S. Treasury bonds and one 
of the top two superpowers, confidently rejected certain U.S. 
demands, challenging the absolute dominance the U.S. had held in 
Asia. 
 
Lee and Obama apparently discussed the issues of China's rise and 
the change in the U.S-Japan alliance insofar as they affect the 
Seoul-Washington alliance.  The U.S.-Japan alliance is closely 
linked to (the U.S. - ROK alliance) in the traditional tripartite 
structure in the region, while China is North Korea's sole ally and 
has a direct interest in issues involving the Korean Peninsula.  The 
fact that China and the U.S. are in a tug-of-war over who dominates 
Northeast Asia and around the world means South Korea's security 
environment is undergoing a sea change. 
 
The leaders of Korea and the U.S. agreed to hold a meeting of their 
foreign and defense ministers sometime next year, which marks the 
60th anniversary of the outbreak of the Korean War, to discuss 
specific ways to develop the alliance.  The U.S. already holds 
similar consultations with China and Japan. 
 
A rapid shift in the balance of power in Asia to China is 
undesirable from Korea's point of view.  The U.S. will have to 
re-evaluate the value of its relationships with Asian countries if 
China's influence in the region increases rapidly.  The ROK and the 
U.S. should use the '2+2' (high-level security and defense) talks 
(that they agreed to hold next year) as an avenue for strategic 
dialogue to discuss the overall political situation in East Asia, 
 
SEOUL 00001836  004 OF 015 
 
 
including changes in China and Japan.  The ROK-U.S. alliance should 
not, and cannot, remain a relationship in which the U.S. supports 
the ROK and the ROK relies on the U.S.  This is a situation which 
the alliance must face in the future, and the relationship must 
adapt to changing conditions and move forward. 
 
Lee and Obama spent the most time during the summit talking about 
the ratification of the Korea-U.S. free trade agreement, but once 
again failed to reach a definitive conclusion because the U.S. was 
unable to present a time frame for ratification.  The U.S. 
government and Senate must realize that the FTA goes beyond trade 
and serves as a opportunity to upgrade the Seoul-Washington alliance 
while the diplomatic environment in Northeast Asia is undergoing 
rapid changes.  Signed in March 2007, the FTA cannot continue in 
limbo forever.  Korea and the U.S. must now handle all bilateral 
matters, including the ratification of the FTA, from the perspective 
of strengthening their alliance. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
LEE ADMINISTRATION IS MYOPIC ON FTA AND N. KOREA ISSUES 
(Hankyoreh Shinmun, November 20, 2009, Page 31) 
 
At a press conference following his summit meeting with President 
Lee Myung-bak yesterday, U.S. President Barack Obama said he plans 
to send Stephen Bosworth, U.S. Special Representative for North 
Korea Policy, to North Korea on Dec. 8 to begin bilateral talks with 
North Korea.  The sanctions phase, which took shape as North Korea 
launched a satellite and conducted a nuclear test in April and May, 
is now entering a full-scale phase of negotiations as the two key 
nations talk directly to resolve the nuclear issue.  We expect that 
with substantive and productive talks between the two sides, North 
Korea will quickly be able to return to the Six-Party Talks. 
 
That Obama announced Bosworth's visit to North Korea in Seoul, the 
last stop on his Asia tour, is a courtesy to the Lee Myung-bak 
Administration, which has not spoken positively about dialogue.  It 
is also a statement that stresses the reality that dialogue is the 
only choice.  Although Obama did not use the phrase "Grand Bargain," 
as proposed by Lee, even once, he said the two countries shared the 
same approach to North Korea.  Observers say that this could also be 
seen as a peck on the cheek for Lee.  Since the U.S. will be 
engaging in North Korea-U.S. dialogue, Obama must have wanted to 
hush up differences with Seoul and send an active message to 
Pyongyang. 
 
There is a great likelihood that the start of U.S.-North Korea 
dialogue will lead to a resumption of the Six-Party Talks and 
Japan-North Korea talks.  That Obama's announcement today came after 
prior fine-tuning with Japan and China, his previous destinations, 
lends even more support to this.  There are even reports that 
Japanese Prime Minister Hatoyama Yukio is pushing to visit North 
Korea next month. 
 
 What is worrisome is the hard-line attitude of our government 
toward North Korea, which is completely preoccupied with its policy 
of demanding that North Korea first dismantle its nuclear program, 
just as it did during the Kim Young-sam Administration.  The Lee 
Administration must realize that without improvements in the 
inter-Korean relationship, South Korea has no room to involve itself 
in Korean Peninsula issues, and should actively switch directions. 
It should also cleanly abandon the Grand Bargain, which is not 
gaining the official support of the U.S. and China, which are 
leading the dialogue phase over the North Korean nuclear issue, and 
merely gives the impression that South Korea is demanding that North 
Korea first abandon its nuclear program. 
 
With the early ratification of the South Korea-U.S. Free Trade 
Agreement (KORUS FTA) -- the issue the South Korean government 
worked on the hardest during this summit -- it seems the Lee 
Administration "went out for wool and came home shorn."  When Obama 
hinted at the automobile market issue, saying that there is a huge 
 
SEOUL 00001836  005 OF 015 
 
 
trade imbalance that the U.S. is concerned about, Lee responded by 
saying that if there is a problem in auto trade, South Korea is 
ready to talk again.  Observers say this could be a virtual 
declaration that South Korea is willing to renegotiate the auto 
trade classes.  If this is so, we cannot understand why there was a 
huge commotion to pass the ratification bill in the last National 
Assembly.  We feel despair at the attitude of the Lee 
administration, which is being myopic, whether it is on the North 
Korea nuclear issue or the KORUS FTA. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
IT'S ALL IN THE DETAILS 
(JoongAng Ilbo, November 20, 2009, Page 38) 
 
U.S. President Barack Obama ended his brief 21-hour visit to Seoul 
and returned home.  In comparison to his four-day stay in China, 
Obama spent less time with his South Korean ally, perhaps because 
there were fewer pending issues. 
 
Yesterday's summit was the third meeting between Obama and President 
Lee Myung-bak, and they are building a deep friendship.  They made 
public their efforts to cooperate on resolving the North Korean 
nuclear issue and ratifying the Korea-U.S. Free Trade Agreement. 
They also agreed to work together when Seoul hosts the G-20 summit 
next year and they vowed to collaborate to fight climate change, 
nuclear proliferation and terrorism.  This is a good outcome. 
 
The summit sent a clear message to North Korea that it must not 
think about rupturing the U.S.-ROK alliance by trying to deal 
directly with the U.S.  For North Korea, the only remaining path is 
returning to the Six-Party Talks and declaring its irreversible and 
verifiable nuclear dismantlement. 
 
It is also promising that Lee and Obama have agreed that the 
Korea-U.S. Free Trade Agreement is not only economically but also 
strategically important.  In addition, it is fortunate that Obama 
has become aware of the fact that the U.S. trade imbalance with Asia 
has become an obstacle to Congress's ratification of the free trade 
agreement with Korea, although trade between the U.S. and Korea is 
relatively balanced. 
 
The expected opposition to the trade pact by the U.S. auto industry 
and unions remains an obstacle, but that's not something to be 
resolved through renegotiation.  The problem can only be resolved 
when U.S. automakers produce cars that are attractive to the Korean 
market. And yet, Lee said that his government is interested in 
talking about the issue again, prompting the misunderstanding that 
he has signaled an intention to renegotiate. 
 
Obama probably felt during his Asia tour that Korea is the most 
reliable ally for the United States in Northeast Asia.  China is 
both a cooperative and competitive partner, while the new Democratic 
administration in Japan presents new challenges for the U.S.-Japan 
alliance. 
 
Obama reaffirmed the U.S. commitment to defend South Korea with a 
nuclear umbrella and extended deterrence and has renewed his 
determination to upgrade the U.S.-Korea alliance to a strategic 
alliance for the 21st century based on the previous agreement.  His 
remarks came at an appropriate time.  In marking the 60th 
anniversary of the Korean War (1950-53), the two countries will hold 
foreign minister- and defense minister-level talks.  The remaining 
task for the two governments will be to flesh out the specifics of 
their alliance. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FINE-TUNING OF FTA POSSIBLE 
(Dong-a Ilbo, November 20, 2009, Page 35) 
 
SEOUL 00001836  006 OF 015 
 
 
 
President Lee Myung-bak yesterday said that if the auto sector is an 
issue in the bilateral free trade agreement with the U.S., he is 
willing to talk about it again.  Cars are a new variable in the 
deal's ratification process at a time when U.S. calls are growing 
over the renegotiation of the automotive portions of the deal.  Both 
leaders spent a great deal of time discussing the agreement in 
yesterday's summit.  They reconfirmed the economic and strategic 
importance of the accord, but showed that there is a long way to go 
before ratification. 
 
The free trade deal is the joint achievement of the two countries 
after 14 months of arduous negotiations.  Twenty-nine months have 
passed since the signing of the pact.  In principle, it should come 
into effect after both countries ratify it, but fine-tuning of 
details without shaking up the framework of the deal is possible if 
additional discussion is needed because of Washington.  President 
Lee's comment, however, should not signal renegotiation from the 
ground up. 
 
President Obama mentioned the U.S. trade imbalance with Asia as an 
obstacle to ratifying the KORUS FTA.  Though its trade deficit with 
Korea is not striking, the U.S. tends to see Asia as a group.  While 
the U.S. trade surplus with China is $300 billion and with Japan (it 
is) $70-80 billion, Korea's trade surplus with the U.S. is merely $8 
billion.  Given the money the U.S. makes through investment 
companies in the ROK or in the service sector, bilateral trade is 
pretty balanced.  The U.S. argument for additional negotiations 
because of the trade imbalance is not convincing. 
Just like the American auto industry, Korea's agricultural and 
service sectors are dissatisfied with the agreement.  The U.S. must 
recognize the potential win-win situation if it accepts Seoul's 
demands in the agricultural and service sectors in return for auto 
concessions to Washington. 
 
The two leaders called each other "friends."  The close relationship 
between them could serve as momentum for bilateral cooperation.  If 
major issues such as the free trade deal and North Korea's nuclear 
program show no progress, however, their friendship and confidence 
could prove meaningless.  Obama will send former U.S. Ambassador to 
Korea Stephen Bosworth, who is now Special Representative for North 
Korea Policy, to Pyongyang Dec. 8.  If Obama considers President Lee 
a friend, he should tell Bosworth to clearly inform North Korea 
about the agreement between the two leaders - the principle of North 
Korea's denuclearization in a complete and verifiable way through 
the Six-Party Talks. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FEATURES 
-------- 
 
 
LEE, OBAMA TO PURSUE `GRAND BARGAIN` FOR NK NUKES 
(Dong-a Ilbo, November 20, 2009, Front Page) 
 
By Reporter Chung Yong-kwan 
 
President Lee Myung-bak and U.S. President Barack Obama agreed 
yesterday to jointly pursue the former's "grand bargain" proposal to 
resolve North Korea's nuclear program in one stroke instead of 
phases.  At the presidential office in Seoul, both leaders also held 
in-depth discussion on ratification of a bilateral free trade 
agreement signed two years ago. 
 
President Lee mentioned the possibility of additional negotiations 
if the automotive industry blocks implementation of the accord, 
signaling a turning point in the stalled ratification process. 
 
On his country's willingness to further open up its auto market, the 
South Korean leader told a joint news conference, "We have reached a 
free trade agreement with the European Union, which has big car 
 
SEOUL 00001836  007 OF 015 
 
 
manufacturers.  The EU exports 50,000 cars to Korea." 
 
 
"If the automotive issue is a problem in the U.S., we're willing to 
talk about it." 
 
President Lee also stressed the need for the deal's early 
ratification, saying, "Each industry has a different position on the 
free trade agreement with the U.S.  In Korea, the service and 
agricultural sectors still oppose it.  From the broader perspective, 
however, it is beneficial for both countries." 
 
On this, Trade Minister Kim Jong-hoon said, "President Lee didn't 
mean additional negotiations or renegotiation, just that we're 
willing to listen to U.S. concerns." 
 
Obama said the two countries recognize that the agreement can 
strengthen bilateral ties not only economically but also 
strategically, but that what concerns the U.S. most is the growing 
imbalance in bilateral trade. 
 
The U.S. trade deficit with South Korea is not salient but Congress 
tends to treat all Asian countries the same, he said, adding that 
American companies and the American people will strive to create a 
win-win situation by assessing the strengths and weaknesses of each 
individual country. 
 
On North Korea's nuclear program, President Lee said, "We fully 
shared the view that the North Korean nuclear issue requires a 
definite and comprehensive resolution, as I described in my 'grand 
bargain' proposal, and (we have) agreed to closely consult on 
elaborating and implementing this approach." 
 
To this, Obama said the two countries fully agreed to a common 
approach on the matter.  He added that he will send former U.S. 
Ambassador to Seoul Stephen Bosworth, who is now Special 
Representative for North Korea Policy, to Pyongyang next month to 
begin bilateral talks with the communist country. 
 
Obama has made it clear that the U.S. will provide economic aid to 
North Korea and help it join the international community only after 
it keeps its obligations and renounces its nuclear program through 
concrete and irreversible measures. 
 
The two leaders also reaffirmed a strong defensive alliance, 
including the U.S. provision of an extended nuclear umbrella.  They 
agreed to hold a bilateral meeting of their foreign and defense 
ministers next year to mark the 60th anniversary of the outbreak of 
the Korean War. 
 
After the summit, Obama had lunch with President Lee, visited the 
U.S. Army base in Seoul`s Yongsan district, and boarded a flight 
home. (sic)* 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
(*Editor's note:  Although President Obama transited Yongsan 
Garrison, his visit with the troops was in Osan Air Base.) 
 
 
LEE, OBAMA VOW TO RATIFY FTA NEXT YEAR 
(Chosun Ilbo, November 20, 2009, Front Page) 
 
By Reporter Joo Yong-joong 
 
President Lee Myung-bak and his U.S. counterpart Barack Obama in a 
meeting at Cheong Wa Dae on Thursday agreed to try and ratify an 
epically delayed bilateral free trade agreement next year. 
 
A Cheong Wa Dae official said, "President Lee spoke about a time 
frame (for ratification) that we wanted and President Obama said he 
understood Korea's position and said he would make an effort, but 
they decided not to include that in their official announcement due 
 
SEOUL 00001836  008 OF 015 
 
 
to the concern that such comments could upset U.S. lawmakers." 
 
In an interview with Fox News in Beijing before flying over to 
Korea, Obama said, "The question is whether we can get it done in 
the beginning of 2010, whether we can get it done at the end of 
¶2010.  There are still some details that need to be worked out." 
 
"We have put our teams in place to make sure that we are covering 
all the issues that might be a barrier to final ratification of the 
agreement," Obama said in a joint press conference with Lee after 
the summit.  "And one of my goals is to... make sure that we can 
create the kind of win-win situation that I know President Lee is 
interested in seeing as well." 
 
Lee said, "President Obama and I talked in detail again about how to 
move this agreement forward.  If there are any problems in the 
automobile sector... then we are ready to resolve this issue." 
 
Trade Minister Kim Jong-hoon later told reporters that this did not 
mean there will be a renegotiation of the FTA or a revision of the 
wording of the contract, but that Korea is willing to listen to U.S. 
concerns and try to come up with solutions or explanations.  But it 
appears that Seoul cannot rule out additional discussions over the 
automotive portion. 
 
A Cheong Wa Dae official said the two leaders also agreed on the 
need to persuade North Korea to scrap its nuclear program through 
bilateral talks with Washington and through the Six-Party Talks. 
They agreed the best way to do this is to offer a so-called "grand 
bargain" in a bid to dismantle North Korea's nuclear program in one 
single step rather than in incremental stages for piecemeal 
rewards. 
 
"I reaffirmed my commitment to continue working together in the 
Six-Party process to achieve a definitive and comprehensive 
resolution of the nuclear issue," Obama said.  "As a part of that 
effort, we will be sending Ambassador (Stephen) Bosworth to North 
Korea on Dec. 8 to engage in direct talks with the North Koreans." 
 
Lee said, "Although a time frame has yet to be set, the sooner North 
Korean nuclear dismantlement talks start the better." 
 
The two presidents agreed that their foreign and defense ministers 
will meet some time next year and discuss specific ways to develop 
the alliance.  Next year marks the 60th anniversary of the outbreak 
of the Korean War.  A Cheong Wa Dae official said the talks would 
"broaden and deepen" diplomatic and security cooperation. 
 
The two leaders also discussed the G20 Summit, which Korea will host 
next year, as well as efforts to deal with global warming.  Obama 
thanked Lee for his decision to send more Korean troops to 
Afghanistan. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
FURTHER KOREA-U.S. FTA TALKS LIKELY TO FOCUS ON AUTOS, AGRICULTURE 
(Chosun Ilbo, November 20, 2009, Page 3) 
 
By Reporter Kim Jung-hoon 
 
The stalled Korea-U.S. Free Trade Agreement, concluded in 2007, is 
getting a push for legislative approval in both countries following 
the summit between President Lee Myung-bak and U.S. President Barack 
Obama.  Adding new momentum to the prospect of ratifying the FTA, 
Lee suggested that additional talks could help iron out U.S. 
concerns over the automotive segment of the deal.  "If there are any 
problems in the automobile sector... then we are ready to resolve 
this issue," Lee said. 
 
Working-level officials from the two sides could meet before the end 
of the year for further talks.  But negotiations could be tense, as 
Korea will likely seek to make up for any concessions in the auto 
 
SEOUL 00001836  009 OF 015 
 
 
sector with reciprocal gains for its agriculture and service 
sectors. 
 
U.S. 
 
At a joint press conference following the summit, Lee said, 
"President Obama and I reaffirmed the economic and strategic 
importance of the Korea-U.S. Free Trade Agreement.  We agreed to 
redouble our efforts to move the agreement forward."  Obama said, 
"And one of my goals is to... make sure that we can create the kind 
of win-win situation that I know President Lee is interested in 
seeing as well." 
 
The two leaders have virtually agreed on the general outline of the 
agreement, but some details need to be ironed out.  The auto sector 
remains a sticky issue, as Washington has complained that exports of 
American automobiles to Korea are far too small compared to 
shipments of Korean cars to the U.S. 
 
When the FTA was signed, Korea pledged to scrap its 8 percent tariff 
on U.S. car imports immediately after it becomes effective so there 
can be no dissatisfaction on the U.S. side in that area.  U.S. 
officials are instead expected to ask that other conditions in the 
Korean market are eased, such as local taxes, environmental and 
safety standards, and other non-tariff barriers. 
 
A Korean government official said, "We will decide whether or not to 
accept U.S. demands after hearing them first." 
 
Korea 
 
Experts believe that if Seoul ends up making concessions on autos 
then it will seek compensatory measures for the agriculture or 
service industries.  At the press conference Lee indirectly 
pressured the U.S. by pointing out that the agriculture and service 
sectors in Korea are still strongly against the deal. 
 
While the two sides will seek to find common ground on the key 
issues, it appears there will be no revision of the wording of the 
deal.  A Foreign Ministry official said, "President Lee's comments 
referring to the agriculture and service sectors were his way of 
saying that the FTA was beneficial for both countries even though 
there are individual sectors that are against it."  Washington 
appears to have recently concluded that the bilateral FTA would not 
be disadvantageous to the U.S. even if it is ratified in its present 
form. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
LEE SAYS OBAMA AGREES ABOUT "GRAND BARGAIN" 
(Chosun Ilbo, November 20, 2009, Page 4) 
 
By Reporter Lim Min-hyuk 
 
President Lee Myung-bak mentioned three times the idea of a "grand 
bargain" - a comprehensive rewards package for North Korea if it 
abandons its nuclear program - in a press conference with U.S. 
President Barack Obama on Thursday.  Lee coined the term during his 
trip to the U.S. in September. 
 
Lee said Obama "completely agreed" with the idea, but Obama did not 
use the term himself.  Instead, he called it a "common approach" or 
"comprehensive resolution." 
 
That appears to bother some Korean officials, who had hoped the U.S. 
president would come round to using the same terminology to dispel 
reports here that there was a rift between Seoul and Washington over 
the concept.  Some muttered they would have liked Obama to use the 
term "grand bargain" as a courtesy to his host. 
 
After Lee coined the term on Sept. 21, U.S. Assistant Secretary of 
State Kurt Campbell told reporters, "To be perfectly honest, I was 
 
SEOUL 00001836  010 OF 015 
 
 
not aware of that."  That sparked suspicion that there was a lack of 
policy coordination between the allies.  A source said, "Some U.S. 
government officials were not pleased with Korea's announcement, 
which was made before details of the proposal had been discussed and 
drawn up.  But the misunderstanding was resolved through diplomatic 
channels later." 
 
The source added Korea and the U.S. "have been working together from 
the start for North Korea's complete denuclearization in return for 
a comprehensive compensation package.  It makes no difference 
whether the U.S. uses the term 'grand bargain' or not." 
 
However, U.S. officials still do not use the term "grand bargain" in 
public. 
 
(This is a translation provided by the newspaper.  We have compared 
the English version on the website with the Korean version and added 
the last paragraph in English to make them identical.) 
 
 
U.S. CALLS FOR FTA RENEGOTIATIONS IS AN ATTEMPT TO ARTIFICIALLY 
ADJUST ITS MARKET SHARE 
(Hankyoreh Shinmun, November 20, 2009, Page 5) 
 
By Reporters Choi Won-hyung and Hwang Bo-yeon and Washington 
Correspondent Kwon Tae-ho 
 
Experts say S. Korea has already made a stunning number of auto 
concessions and recommends taking the initiative to renegotiate 
toxic terms 
 
Analysts are saying the reason the U.S. is calling for 
renegotiations of the auto trade clauses of the South Korea-U.S. 
Free Trade Agreement (KORUS FTA) is due to the vast difference in 
the scale of auto exports between South Korea and the U.S.  However, 
based on the far greater number of concessions made by South Korea 
to the U.S. in the agreement between the two countries already, some 
critics are charging that the U.S. calls for renegotiations are an 
attempt to artificially adjust its market share.  Even the offices 
of the U.S. Trade Representative are calling it "managed trade," 
rather than "free trade." 
 
Experts in South Korea are saying that no further concessions can be 
made because everything has already been given away.  In the area of 
tariffs alone, South Korea has already agreed to immediately and 
completely abolish its 8 percent tariff on imported automobiles when 
the agreement takes effect, while the U.S. has agreed to 
incrementally abolish its 2.5 percent tariff on automobiles of 
3000cc displacement over a period of three years.  The high tariff 
of 25 percent for pickup trucks, which are mainly supplied by the 
so-called "Big Three" automakers, is to be lowered over a period of 
ten years.  Additionally, measures to revise taxation by changing 
the displacement standard, to adjust exhaust regulations to conform 
to U.S. standards, and to defer application of safety standards on 
U.S. cars for two years were benefits given to U.S. automobiles, 
which have large displacement. 
 
On top of this, a "snap back" provision for quick conflict 
resolution was introduced that would immediately return tariffs to 
their previous levels in the event of a violation of the agreement. 
As a result of these stipulations, the prevailing view among 
observers is that the agreement already reached was a humiliating 
bargain for South Korea and that there is nothing left to give. 
 
For these reasons, some experts are predicting that even if it is 
calling for renegotiations, it will be difficult for the U.S. to 
make any specific demands.  Kim Ki-chan, professor of business 
administration at the Catholic University of Korea, says, "The 
imbalance in exports is the result of a loss of competitiveness by 
the U.S. automotive industry, which focuses on large models, so the 
call for renegotiations can be interpreted as meaning, 'We are going 
to raise our market share even if we have to force it.'" 
 
Kim Pil-su, automotive engineering professor of Daelim University, 
 
SEOUL 00001836  011 OF 015 
 
 
says that the U.S. "has nothing clearly worth demanding."  Kim also 
points out, "About all the U.S. can ask for is that the period for 
abolishing the tariff be put off another one or two years, and that 
is not something that can resolve the imbalance in exports."  In 
other words, there is nothing left but measures that would 
artificially raise the South Korean market share of U.S. 
automobiles, and this inevitably goes against FTA principles. 
 
As a result, President Lee Myung-bak's remark Thursday that "we are 
positioned to discuss things again" has provoked concerns over 
whether he is giving the U.S. an occasion to call for 
renegotiations, which might lead to even more concessions in the 
automotive area than were made in the previous agreement.  One 
expert said, "It can essentially be interpreted as saying that we 
will have new negotiations or additional discussions."  The expert 
added, "The wisest choice for our government would actually be to go 
on the offensive and demand renegotiation on toxic, unequal items 
and to adjust its speed while keeping an eye on discussions in the 
U.S. Congress." 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
PRESIDENT LEE HINTS AT RENEGOTIATIONS ON FTA AUTO TRADE CLAUSES 
(Hankyoreh Shinmun, November 20, 2009, Front Page) 
 
By Reporter Hwang Joon-beom 
 
Lee's remark on the KORUS FTA during the press conference following 
the summit with Obama leaves some confused 
 
While speaking on the Korea-U.S. Free Trade Agreement (FTA), 
President Lee Myung-bak hinted Thursday that he would consider 
engaging in additional negotiations over the automobile sector if 
the U.S. requests it.  President Lee's statement is expected to 
cause controversy.  In addition, U.S. President Barack Obama used 
the visit in South Korea as a setting for announcing the schedule 
for the visit by Stephen Bosworth, U.S. Special Representative for 
North Korea Policy, to North Korea on Dec. 8 to engage in North 
Korea-U.S. dialogue. 
 
At a press conference following his summit meeting with Obama, Lee 
said that if the U.S. has issues with the auto sector, South Korea 
is ready to talk again. 
 
When asked by a U.S. reporter whether South Korea intends to 
renegotiate the FTA agreement on the auto sector, Lee responded by 
saying that South Korea has signed an FTA with the European Union 
(EU), another major car producer, and that if the U.S. and South 
Korea have an issue with the auto sector, they should be given a 
chance to reach a common understanding. 
 
In response, Trade Minister Kim Jong-hoon, who attended the summit, 
said there could be no renegotiations to the text of the FTA 
agreement, and that Lee's comment should not be interpreted as 
anything more than a readiness to listen to what the U.S. side has 
to say.  Another key Cheong Wa Dae official, who wished to remain 
unnamed, however, said the statement meant that if the U.S. proposes 
a plan, South Korea could consider participating in additional 
negotiations. 
 
Experts say that President Lee's remark could mean that South Korea 
may yield on issues, such as the immediate abolition of tariffs on 
autos, by creating an addendum to the agreement.  On the other hand, 
Trade Minister Kim says South Korea has no plans to renegotiate the 
provisions concerning the agricultural sector, where it seems South 
Korea will take a major hit. 
 
Regarding the North Korea nuclear issue, President Obama said at the 
press conference that he plans to send Bosworth to North Korea on 
Dec. 8 to begin bilateral talks with North Korea.  Bosworth's visit 
as a presidential envoy comes seven years after then-Assistant 
Secretary of State James Kelly visited Pyongyang and met with North 
 
SEOUL 00001836  012 OF 015 
 
 
Korean First Vice Foreign Minister Kang Sok-ju in October 2002. 
 
Obama stressed, "Our message is clear.  If North Korea is prepared 
to take concrete and irreversible steps to fulfill its obligations 
and eliminate its nuclear weapons program, the U.S. will support 
economic assistance and help promote its full integration into the 
community of nations." 
 
Lee said the two leaders fully agreed on the need to present a 
package deal in the form of Lee's proposed "Grand Bargain" to 
resolve the North Korea nuclear issue, and that they agreed to 
discuss closely the specific content of such a bargain and how to 
promote it.  Obama also stated that the two sides have agreed 
completely on a joint approach. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
OBAMA ANNOUNCES BOSWORTH'S N. KOREA SCHEDULE DURING SUMMIT IN SEOUL 
 
(Hankyoreh Shinmun, November 20, 2009, Page 4) 
 
By Reporter Lee Yong-in 
 
U.S. shows an intention of both engaging in direct dialogue with N. 
Korea and maintaining cooperation with S. Korea on the nuclear issue 
 
 
 Experts are saying that U.S. President Barack Obama's decision to 
choose Seoul as the setting for his announcement on the schedule for 
the trip by Stephen Bosworth, U.S. Special Representative for North 
Korea Policy, to North Korea has symbolic meaning in itself.  In 
addition, Obama appears to have shied away from making any 
statements that might provoke North Korea out of consideration for 
the upcoming bilateral dialogue between the U.S. and North Korea 
scheduled for Dec. 8. 
 
Experts had actually already predicted that Bosworth's North Korea 
visit would be held early next month.  The U.S. State Department 
formally announced the visit on Nov. 10, just before Obama's Asia 
tour, and gave the date as sometime "within this year."  Informally, 
however, the State Department announced that it would be some time 
around early December, after the last week of November and the U.S. 
Thanksgiving holiday. 
 
Yet, certain significance can be attributed to the decision to 
announce the schedule of Bosworth's visit to North Korea during the 
South Korea-U.S. summit.  Kim Yong-hyun, a professor of North Korean 
studies at Dongguk University, says, "It shows President Obama's 
intention to have a direct dialogue with North Korea." 
 
Another foreign policy expert interprets it as a "message to North 
Korea," a declaration of readiness to engage in dialogue with the 
country.  In essence, it follows along with U.S. Secretary of State 
Hillary Rodham Clinton's formal announcement of the appointment of 
Bosworth, a former U.S. Ambassador to South Korea, as the Special 
Representative for North Korean policy, which she made during her 
visit to South Korea in February.  An official with the South Korean 
government explained, "It shows that South Korea and the U.S. are 
cooperating well on the North Korea nuclear issue." 
 
Obama also limited remarks about North Korea at the summit to a 
reiteration of his existing policy line on North Korea.  Obama said 
Thursday, "If North Korea is prepared to take concrete and 
irreversible steps to fulfill its obligations and eliminate its 
nuclear weapons program, the U.S. will support economic assistance 
and help promote its full integration into the community of 
nations."  Previously, following his Tuesday summit meeting with 
Chinese President Hu Jintao, Obama said that North Korea was at a 
crossroads of choosing between "the path of confrontation and 
provocation" and "becoming a full member of the international 
community."  He also said at that meeting that North Korea would 
fail to prosper and find itself isolated if it continued engaging in 
 
SEOUL 00001836  013 OF 015 
 
 
confrontation and provocation.  The basic gist of the statements 
then and now is similar, but observers are noting that Obama appears 
to have avoided using provocative expressions such as and 
"confrontation" and "isolation" in this announcement. 
 
It is difficult, however, to predict the outcome of Bosworth's North 
Korea visit.  At a press conference Thursday, Obama described the 
character of the upcoming North Korea-U.S. meeting as "talks." 
Observers are interpreting this to mean that an attempt will be made 
to assess each other's intentions rather than to mean that (actual) 
negotiations will take place.  In contrast, North Korea wants to sit 
down with the U.S. and draw it into substantive negotiations. 
 
Regarding what could possibly be brought up at the negotiation 
table, North Korea has repeatedly indicated that it will be placing 
priority on discussing "the issue of turning the hostile North 
Korea-U.S. relationship into a peaceful relationship."  This means 
it is more interested in normalizing North Korea-U.S. relations and 
addressing security issues such as a peace system.  In contrast, the 
U.S. is focused on urging North Korea to quickly return to the 
Six-Party Talks and to reaffirm its intent to abide by the joint 
statement of Sept. 19, 2005.  However, analysts are saying that in 
order to persuade North Korea to return to the Six-Party Talks and 
denuclearize, the U.S. will have no choice but to reveal what will 
be given in return.  Former Unification Minister Jeong Se-hyun said, 
"The contents of the package Bosworth carries with him to North 
Korea are important." 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
SUMMIT FOCUSES ON NORTH KOREA AND FREE TRADE AGREEMENT 
(JoongAng Daily, November 20, 2009, Front Page) 
 
By Ser Myo-ja 
 
Obama says Bosworth will go to Pyongyang on Dec. 8 
 
The United States will send a special envoy to North Korea on Dec. 8 
for direct talks on the nuclear impasse with the dictatorial regime, 
U.S. President Barack Obama said yesterday, vowing that Seoul and 
Washington shared a commitment to break the past pattern of 
rewarding Pyongyang for provocative behavior. 
 
Obama and President Lee Myung-bak also promised (that they would 
make an) effort to seek ratification of the bilateral free trade 
agreement that was signed in 2007.  Lee said his government is 
willing to discuss the thorny issue of automobile exports if that 
helps the stalled ratification process move forward in the U.S. 
Congress. 
 
Following a summit that lasted more than an hour, Lee and Obama 
addressed the press at the Blue House. 
 
"We will be sending Ambassador (Stephen) Bosworth to North Korea on 
Dec. 8 to engage in direct talks with the North Koreans," Obama told 
the media.  It was the first time that the United States made public 
the date of the mission, aimed at persuading North Korea to return 
to the Six-Party Talks. 
 
"I am satisfied that South Korea and the United States are 
cooperating closer than ever in resolving the North Korea nuclear 
issue," President Lee said, adding that he and Obama have agreed to 
resolve the situation through a comprehensive "grand bargain." 
 
"The thing I want to emphasize is that President Lee and I both 
agree that we want to break the pattern that has existed in the 
past, in which North Korea behaves in a provocative fashion, and 
then is willing to return to talks for a while and then leaves the 
talks and then that leads to seeking further concessions," Obama 
said. 
 
Lee said North Korea will face a new future if it takes the grand 
 
SEOUL 00001836  014 OF 015 
 
 
bargain offer, in which Pyongyang's nuclear arms programs will be 
exchanged for massive economic aid and the normalization of ties 
with the international community. 
 
 "I hope that by accepting our proposal, the North will secure its 
safety, improve the quality of life for its people, and open the 
path to a new future," Lee said. 
 
Obama also pressured the North to seriously consider giving up its 
nuclear weapons programs, emphasizing that the "door is open."  He 
also said the international community will not be distracted by side 
items that end up generating more meetings but little concrete 
action. 
 
In addition to the nuclear impasse with North Korea, Lee and Obama 
also addressed the sensitive issue of trade liberalization between 
the two countries. 
 
"President Obama and I reconfirmed the economic and strategic 
importance of the Korea-U.S. Free Trade Agreement and agreed to work 
together to move the trade deal forward," Lee said. 
 
A senior Blue House official told JoongAng Ilbo that Lee proposed a 
time line to Obama, urging him to persuade the U.S. Congress to 
endorse the deal before the end of the first half of next year. 
While the U.S. president's reaction to the proposal was not 
immediately known, Obama made clear his commitment to forge ahead 
with the free trade agreement, saying that the deal will benefit 
both countries. 
 
The free trade agreement was signed by the previous administrations 
in 2007.  The last step to liberalize trade between Korea and the 
United States is ratification by their respective legislatures. 
U.S. automobile lobby groups have expressed dissatisfaction toward 
the deal, complaining that the Korean market was not sufficiently 
open to them.  In contrast, the agreement has been criticized by 
farmers and service industry workers in Korea. 
 
Obama said a team has been created under his administration to 
remove the obstacles. 
 
"American companies and workers are very confident in our ability to 
compete," Obama said.  "And we recognize that there is not only an 
economic, but a strategic interest, in expanding our ties to South 
Korea." 
 
The American president also said the United States is concerned 
about the trade imbalance with Asia, although trade with Korea is 
relatively balanced. 
 
"There has been a tendency, I think, to lump all of Asia together 
when Congress votes on trade agreements," Obama said, adding that 
his government and the business community will try to assess 
conditions with each country separately to create a win-win 
situation. 
 
President Lee also said he is aware of the automobile issue and his 
government is willing to talk about the concerns.  "In Korea, those 
in the service and agricultural industries oppose the FTA, but we 
are pushing it forward because it will benefit bilateral trade," Lee 
said.  "If the automobiles are a problem, we are willing to talk 
about it.  The European Union is a major automaker, but we signed an 
FTA with them." 
 
Senior Lee administration officials explained that the president's 
remark does not mean renegotiation of the deal.  "What he means is 
that we are willing to listen to what the U.S. concerns are for the 
automotive industry," said Trade Minister Kim Jong-hoon.  The trade 
minister added that Washington will discuss the matter internally 
first and then contact Seoul.  "Convincing Congress (to ratify the 
FTA) is an important task for Obama, and the U.S. president said the 
summit was helpful because he has earned some good points that he 
can refer to when persuading the legislature," Kim said. 
 
 
SEOUL 00001836  015 OF 015 
 
 
At the press conference, Lee and Obama said they have discussed 
plans to bolster the two countries' alliance.  Marking the 60th 
anniversary of the Korean War, defense and foreign ministers of the 
two countries will have talks next year to discuss the specific 
future vision for the alliance, Lee and Obama said. 
 
The U.S. president also said he has discussed global issues with 
President Lee, including Seoul's hosting of the G-20 summit and 
Korea's participation in the global efforts to rebuild Afghanistan. 
Climate change and clean energy were also discussed, Obama said, 
praising Korea's recent voluntary announcement of greenhouse gas 
emission cuts by 2020.  Lee and Obama talked for more than an hour 
at the summit with only a few key aides accompanying them, the Blue 
House said.  Foreign Minister Yu Myung-hwan, Trade Minister Kim and 
Senior Secretary for Economic Affairs Yoon Jin-sik are among the 
Korean aides who attended.  Obama was accompanied by Susan Rice, 
U.S. Ambassador to the United Nations; Larry Summers, Director of 
the National Economic Council; Deputy National Security Adviser Tom 
Donilon, Assistant Secretary of State Kurt Campbell and Jeff Bader, 
the Senior Director for Asian Affairs at the National Security 
Council.  The two leaders continued talks at a working luncheon with 
more officials present.  Obama said he was a fan of Korean culture 
and barbecue.  The Blue House said the U.S. leader was given a 
taekwondo uniform and books featuring Korean art and culture.  The 
U.S. president left yesterday afternoon. 
 
 
STEPHENS