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UNCLAS SECTION 01 OF 04 SEOUL 001965 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; December 17, 2009 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo 
Plane Impounded in Thailand Contains 
Taepodong-2 Missile Parts 
 
JoongAng Ilbo, Hankook Ilbo, All TVs 
Court Issues Warrant to Arrest Former Prime Minister 
 
Dong-a Ilbo, Seoul Shinmun 
17 Killed in Tourist Bus Crash near Gyeongju 
 
Hankyoreh Shinmun 
Blue House Effectively Rejects "Three-Way Meeting" between Leaders 
of Ruling and Opposition Parties and President Lee 
to Resolve Budget Impasse 
 
Segye Ilbo 
Gas Rates to be Linked to Global Oil Prices 
 
 
INTERNATIONAL NEWS 
------------------ 
 
According to a diplomatic source in Washington and foreign media, 
President Barack Obama sent a personal letter to North Korean leader 
Kim Jong-il that was delivered last week when Special Representative 
for North Korea Policy Stephen Bosworth visited Pyongyang. (All) 
 
According to Reuters, Thai investigators searching cargo seized from 
a plane from North Korea that landed in Bangkok have found weaponry 
that includes unassembled Taepodong-2 missile parts. (Chosun, 
Dong-a, Hankook) 
 
A high-ranking Thai government security official said: "Given that 
North Korea has developed the Taepodong-2 missile in cooperation 
with Iran, some experts believe that the seized weapons (were 
destined for) Iran." (Chosun, Dong-a, Hankook) 
 
According to a source in Seoul, North Korean leader Kim Jong-il 
ordered the November currency revaluation in his country to get a 
better handle on the North's economy. The source said that the North 
Korean leader issued a directive in early September saying that the 
North's planned economy and the market economy, which developed 
after an earlier economic reform, could not coexist. (JoongAng) 
 
According to a source well-versed in North Korean affairs, North 
Korea's arms exports this year have reached nearly $200 million, 
twice the amount of last year's. (Dong-a) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
---------- 
All ROK media covered yesterday's foreign media reports that 
President Barack Obama sent a personal letter to North Korean leader 
Kim Jong-il, which was delivered last week when Special 
Representative for North Korea Policy Stephen Bosworth visited 
Pyongyang. 
 
Conservative Chosun Ilbo noted Washington's unwillingness to make 
public the existence of the letter, and said that there is 
speculation that President Obama may have made "bold" promises (to 
North Korea), such as a bilateral summit, if the North's 
denuclearization proceeds smoothly. 
 
Conservative Segye Ilbo quoted Foreign Minister Yu Myung-hwan as 
telling reporters yesterday: "(I am) aware that North Korea conveyed 
 
SEOUL 00001965  002 OF 004 
 
 
to Ambassador Bosworth, who traveled to the North from Dec. 8 to 10, 
that the U.N. sanctions on the country are unreasonable.  This is 
nothing new.  (The claim) is similar to the North's insistence that 
the U.S. drop its hostile policy toward the North before it returns 
to the Six-Party Talks." 
 
Most media replayed a Dec. 16 report by Reuters that Thai 
investigators searching cargo seized from a plane from North Korea 
that landed in Bangkok have found weaponry that includes unassembled 
Taepodong-2 missile parts.  A high-ranking Thai government security 
official was widely quoted as saying: "Given that North Korea has 
developed the Taepodong-2 missile in cooperation with Iran, some 
experts believe that the seized weapons (were destined for) Iran." 
 
Conservative Chosun Ilbo, in a related development, gave attention 
to a Dec. 8 report by Japan's Sankei Shimbun claiming that North 
Korea is assisting Iran in developing a cruise missile.  According 
to the Japanese daily, an unnamed diplomatic source claimed that the 
missile under development is capable of carrying a nuclear warhead 
and could lead to technical improvements in Middle Eastern and North 
Korean missile technologies. 
 
 
FEATURES 
---------- 
 
NORTH'S KIM MOVED TO END MARKET ECONOMY 
(JoongAng Daily, December 17, 2009) 
 
By Reporter Jeong Yong-soo 
 
North Korean leader Kim Jong-il had ordered the November currency 
revaluation in his country in September to get a better handle on 
the economy, the JoongAng Ilbo has learned. 
 
A source in Seoul said yesterday that Kim issued a directive in 
early September to officials handling the economy saying that North 
Korea's planned economy and the market economy, which developed 
after an earlier economic reform, could not coexist. 
 
"The currency reform was designed to restore order within, and 
strengthen, the centrally planned economy," the source said, 
referring to the economic system managed directly by the state. 
 
The central government makes all economy-related decisions. 
 
Relaying a message from a high-ranking economic official in 
Pyongyang, the source added, "The new economic policy line, 
reflecting Kim Jong-il's wishes, is expected to be included in his 
New Year's Day editorial in newspapers on Jan. 1." 
 
Soon after the revaluation began on Nov. 30, exchanging old bills 
for new ones at the rate of 100 to 1, various sources said the move 
was aimed at curbing inflation following the economic reform 
measures from July 1, 2002. 
 
The North in 2002 introduced some market economy aspects, raising 
wages, expanding corporate incentives and gave companies leeway to 
set their own business plans.  The side effects have been inflation 
and a widening gap between the rich and the poor. 
 
The Seoul source also said Kim Jong-il asked the economic officials 
to attract more investments from the Western world, including the 
United States. 
 
"North Korea tried to draw investment through special financial 
districts in 1993 and 2002, but had little success," the source 
said.  "This time, the North (plans to) expand those special 
districts and will try to bring in foreign capital to other areas, 
too." 
 
Professor Chin Hee-gwan of Inje University's unification studies 
program said the North has in effect acknowledged the failure of the 
July 1 measures. 
 
SEOUL 00001965  003 OF 004 
 
 
 
"The expanded market economy had a spillover effect on the planned 
economy, and internally, the North has admitted its mishap," Chin 
said.  "The North's economy now appears to be on the upswing, and it 
must be confident about supplying goods through its ties with 
China." 
 
A North Korean expert at a state-run research institute said Kim 
Jong-il had already hinted in his June statement that economic 
change was imminent.  Kim at the time said the North Korean people 
should strive to achieve "self-reliant economic revival." 
 
"Stressing self-reliance essentially meant doing away with the July 
1 measures," the expert said.  "I can just picture Kim agonizing 
over what to do with the side effects from July 1." 
 
 
IS NORTH KOREA TAKING A POSITIVE ATTITUDE AFTER BOSWORTH'S VISIT DUE 
TO OBAMA'S PERSONAL LETTER? 
(JoonAng Ilbo, December 17, Page 10) 
 
By Correspondents Choi Sang-yeon and Kim Dong-ho 
 
U.S. Special Representative for North Korea Policy Stephen 
Bosworth's visit to North Korea produced much more positive results 
than expected.  On December 11, one day after Ambassador Bosworth 
wrapped up his visit, a North Korean Foreign Ministry spokesman said 
that the two sides reached a series of common understandings on the 
need to resume the Six-Party Talks and the importance of 
implementing the September 19 Joint Statement.  The U.S. said that 
this statement signals a good start. 
 
Even though North Korea stopped short of pledging to return to the 
Six-Party Talks, it is the first time the North mentioned the 
resumption of the Six-Party Talks and the implementation of the 
September 19 Joint Statement since it vowed never to return to the 
multilateral forum in April.  Therefore, this represents a 
significant change in North Korea's attitude. 
 
U.S. experts on North Korea viewed this change (in the North Korean 
attitude) as somewhat unexpected.  North Korea and the U.S. had no 
discussions on follow-up talks.  Moreover, Ambassador Bosworth's 
visit did not include a meeting with North Korean leader Kim 
Jong-il.  Therefore, diplomatic sources in Washington speculated 
that "something" is behind the change in North Korea's attitude.  It 
turns out that the change was apparently driven by President Obama's 
personal letter which Ambassador Bosworth delivered to Kim Jong-il. 
 
A presidential letter is not diplomatically binding but generally 
contains polite requests from a state leader.  A presidential letter 
is often kept under wraps and remains undisclosed.  This time again, 
the Obama Administration reportedly stressed to the other Six-Party 
nations that the fact should not be disclosed.  The ROKG is 
maintaining the position that "Ambassador Bosworth did not talk 
about the personal letter, and we do not know about it" or that "It 
is not appropriate to mention it." 
 
The problem is the contents of the letter.  Up until now, the Obama 
Administration has reiterated that it will not withdraw sanctions 
against North Korea or provide other incentives in order to persuade 
the North to rejoin the Six-Party Talks.  Assistant Secretary of 
State for Public Affairs Philip Crowley noted, "Ambassador Bosworth 
and the team made clear to North Korea, should they come back to the 
Six-Party process, should they take affirmative steps in the 
denuclearization process, then a range of other possibilities open 
up for North Korea."  In this regard, Japan's Yomiuri Shimbun quoted 
a USG official as saying on December 16, "When Ambassador Bosworth 
visited Pyongyang, the North asked him to provide it with a 
justification for returning to the Six-Party Talks."  The daily 
added, "The official presumed that the lifting of the economic 
sanctions is the justification." 
 
Former U.S. Presidents Bill Clinton and George W. Bush also sent 
their personal letters to North Korean leader Kim Jong-il.  However, 
 
SEOUL 00001965  004 OF 004 
 
 
President Obama's letter is unusual in the sense that the missive 
was sent after intensive diplomatic efforts.  Former President Bush 
wrote in his letter sent in late 2007, late in his term, "We can 
have normalized relations on the condition that North Korea fully 
discloses its nuclear plans." 
 
 
STEPHENS