VZCZCXRO9932
OO RUEHGH
DE RUEHUL #0005/01 0040546
ZNR UUUUU ZZH
O 040546Z JAN 10
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6610
RUCPDOC/USDOC WASHDC 9565
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC//DDI/OEA//
RHHMUNA/USCINCPAC HONOLULU HI//FPA//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC//DB-Z//
RUEHMO/AMEMBASSY MOSCOW 0658
RUEHBJ/AMEMBASSY BEIJING 7107
RUEHKO/AMEMBASSY TOKYO 7167
RUEHGH/AMCONSUL SHANGHAI 1648
RUEHSH/AMCONSUL SHENYANG 5479
RUEHIN/AIT TAIPEI 4404
RUEHGP/AMEMBASSY SINGAPORE 7615
RUCNDT/USMISSION USUN NEW YORK 1886
RUEHGV/USMISSION GENEVA 3187
RUEHLO/AMEMBASSY LONDON 2262
RUEHFR/AMEMBASSY PARIS 2869

UNCLAS SECTION 01 OF 05 SEOUL 000005 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; JANUARY 4, 2010 
 
TOP HEADLINES 
------------- 
 
Chosun Ilbo 
All Roads Lead to Asia; Wealth Moves 
from West to East in 21st Century 
 
JoongAng Ilbo 
Competent KAIST Professors May Keep Titles Longer 
 
Dong-a Ilbo 
Signs of Holding 3rd Inter-Korean Summit Appear 
 
Hankook Ilbo 
Political Reform Needed; National Assembly 
Should Become a "Hall of Healing Conflicts" 
 
Hankyoreh Shinmun 
57 Percent Support ROK-led Inter-Korean Summit... President Lee's 
Job Approval Rating Is 56.7 Percent 
 
Segye Ilbo 
World's Tallest Building Burj Dubai Opens in UAE Today 
 
Seoul Shinmun 
Low Birth Rate Hinders ROK's Growth 
 
 
DOMESTIC DEVELOPMENTS 
---------------------- 
 
North Korea called on the need to "open the path for improving 
relations between the two Koreas" in the New Year's message carried 
in a editorial in three North Korean newspapers, increasing the 
prospects for an inter-Korean summit. (Dong-a, Hankook, Hankyoreh, 
Seoul, Segye) Experts say that a summit, if realized, may take place 
in March or April at the earliest (Hankook) or around the August 15 
Liberation Day or the Chuseok holidays. (Dong-a) 
 
UN Special Rapporteur on North Korean Human Rights Vitit Muntarbhorn 
is scheduled to arrive in Seoul on January 10 for a seven-day visit, 
and U.S. Special Envoy for North Korea Human Rights Issues Robert 
King will also visit Seoul on January 11. (Chosun, Hankook, Segye) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
Victor Cha, the Center for Strategic and International Studies 
(CSIS) Korea Chair, said in a January 2, local time, interview with 
JoongAng Ilbo in Washington, that North Korean leader Kim Jong-il 
would like to meet with businessman-turned-President Lee Myung-bak 
and that the KORUS FTA will not likely be ratified until November. 
(JoongAng) 
 
The U.S. and Britain closed their embassies in Yemen on January 3 in 
the face of al-Qaeda threats. (All) 
 
 
MEDIA ANALYSIS 
-------------- 
 
-N. Korea 
--------- 
Most ROK media covered North Korea's New Year's message calling on 
the need to "open the path for improving relations between the two 
Koreas."  Conservative Dong-a Ilbo speculated that as North Korea 
has shifted to a softer mode, it will brighten the prospects for an 
inter-Korean summit, and a summit, if realized, will take place 
around the August 15 Liberation Day or the Chuseok holidays (Sept. 
21-23).  Meanwhile, moderate Hankook Ilbo reported that the summit 
may be held in March or April at the earliest. 
 
 
SEOUL 00000005  002 OF 005 
 
 
Right-of-center JoongAng Ilbo had an interview with Victor Cha, the 
Center for Strategic and International Studies (CSIS) Korea Chair, 
in Washington on January 2.  Mr. Cha was reported to have said that 
North Korean leader Kim Jong-il, who feels more friendly towards 
businessmen than politicians, would like to meet with 
businessman-turned-President Lee Myung-bak, raising the possibility 
of an inter-Korean summit. 
 
Conservative Chosun Ilbo editorialized: "North Korea, (in its New 
Year's message,) may have adopted a conciliatory stance toward Seoul 
in order to make progress in its relations with the ROK, a 
precondition set by the U.S. for an improvement in the U.S.-North 
Korea relations and for higher-level bilateral dialogue." 
 
Moderate Hankyoreh Shinmun editorialized: "North Korea's (New Year's 
message) hints at two things: the North Korean economy is in 
difficulty; and for the North, stability inside and outside the 
country is very important now. ... The Six-Party nations should take 
advantage of this situation to activate discussions about 
denuclearization.  ... We should also positively consider 
negotiations about a peace regime (on the Korean Peninsula), which 
the North emphasizes.  Since North Korea's nuclear dismantlement is 
directly linked with its security guarantee, denuclearization 
efforts and the establishment of a peace regime should go hand in 
hand.  For the U.S., which must consider domestic public opinion, 
the establishment of a peace regime may be less burdensome than a 
complete normalization of relations with the North." 
 
-U.S. Anti-Terrorism Efforts 
----------------------------- 
All newspapers reported on the closure of the U.S. and U.K. 
embassies in Yemen in the face of al-Qaeda threats.  Dong-a Ilbo 
picked up U.S. President Obama's statement that "I think it is a top 
priority for us to stamp out Al Qaeda once and for all."  JoongAng 
Ilbo interpreted the U.S.'s embassy closure as a prelude to its war 
on terrorism. 
 
Conservative Chosun Ilbo reported that Washington had sent David 
Petraeus, head of the U.S. Central Command, to Yemen to deliver 
President Obama's personal letter to Yemeni President Ali Abdullah 
Saleh and to discuss the issue of al-Qaeda in Yemen.   On its inside 
page, the daily carried a headline, "After Passage of Health Care 
Bill, Obama Aims at 'War on Terror' Again." 
Hankook Ilbo carried a headline, "Obama Officially Blames al-Qaeda 
Affiliate for Airliner Attack for the First Time." 
 
 
OPINIONS/EDITORIALS 
-------------------- 
 
HOW TO ENGAGE N. KOREA IN DIALOGUE 
(Chosun Ilbo, January 4, 2010, Page 31) 
 
In his New Year's address on Monday, President Lee Myung-bak will 
unveil a plan to improve relations with North Korea.  Unification 
Minister Hyun In-taek in a policy briefing to the president last 
Thursday said, "All kinds of dialogue are possible, including those 
involving the highest officials."  At the start of the New Year, 
there are signs of a potential thaw in inter-Korean relations, which 
had been virtually frozen during the first two years of the Lee 
Administration.  There is even talk of an inter-Korean summit. 
 
In a New Year's message on Friday carried by the official Korean 
Central News Agency, North Korea said, "It is the consistent stand 
of (North Korea) to establish a lasting peace framework on the 
Korean Peninsula and make it nuclear-free through dialogue and 
negotiations."  The Choson Sinbo, a North Korean mouthpiece in 
Japan, said the message was a precursor to "radical changes" this 
year.  It was markedly different from its New Year's message in 
2009, when North Korea called the Lee Administration "fascist" and 
called on South Koreans to rebel against their government. 
 
This is not the first time that North Korea shifted its stance to 
fit its needs.  During the first half of 2009, the North was busy 
 
SEOUL 00000005  003 OF 005 
 
 
testing missiles and nuclear weapons, only to turn around during the 
second half and start making peace overtures to the U.S. and South 
Korean governments.  North Korea has always used provocation and 
dialogue depending on the situation, so there is no need to get 
excited. Still, the shift is worth noting. 
 
In the title for its New Year's message, North Korea called on its 
people to speed up the development of the country's light 
manufacturing and farming industries to achieve a "decisive 
transformation."  Those words demonstrate the seriousness of North 
Korea's economic situation.  Public anger over the revaluation of 
the North Korean currency is said to show few signs of abating, and 
the third-generation dynastic transfer of power to Kim Jong-un does 
not seem to be going smoothly while the health of leader Kim Jong-il 
remains in question.  These troubles are probably the reason why the 
North is seeking improved ties with South Korea and the U.S. 
 
North Korea said in its message, "The fundamental task for ensuring 
peace and stability on the Korean Peninsula and in the rest of Asia 
is to put an end to the hostile relationship with the U.S."  It may 
have adopted a conciliatory stance toward Seoul in order to make 
progress in its relations with the ROK, a precondition set by the 
U.S. for an improvement in the U.S.-North Korea relations and for 
higher-level bilateral dialogue.  North Korea will use dialogue with 
Washington to demand a peace treaty, which in turn could lead to 
revisions in the South Korea-U.S. defense pact and cause changes in 
the status of American forces in the South. 
 
The uncertainties and complexities in inter-Korean ties could lead 
to major opportunities, but also carry heavy risks.  Seoul must not 
regard a summit as a goal in itself but as a means to address the 
opportunities and risks in inter-Korean relations. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
¶S. KOREA'S RESPONSE TO NORTH KOREA'S TRANSITION AND IMPROVEMENTS IN 
INTER-KOREAN RELATIONS 
(Hankyoreh Shinmun, January 4, 2010, Page 31) 
 
Unlike the previous year, North Korea avoided criticizing South 
Korea in its joint New Year`s Day editorial issued on Friday. 
Instead, its three major newspapers published an editorial stating 
North Korea's intention to improve inter-Korean relations.  At the 
same time, the editorials (spoke of a desire to) end  antagonistic 
relations with the U.S. and emphasized the establishment of a peace 
regime and denuclearization.  This indicates (that North Korea is 
taking) a flexible position and showing its willingness to expand 
the dialogue and negotiations that have been taking shape since the 
summer of 2009. 
 
As indicated by the editorial headlines (in the three newspapers), 
"Let Us Achieve a Definitive Transition in the People's Livelihood 
by Spurring Light Industry and Agriculture," the focus was on 
economic issues.  This hints at two things.  First, the North Korean 
economy is in difficulty.  In particular, due to the recent currency 
reforms, the discontent among residents is likely to grow unless 
(residents receive greater access to) necessary supplies (of 
household goods.)    Second, for the North, stability inside and 
outside the country is very important now.  The Workers' Party of 
Korea celebrates its 65th anniversary this fall and there is a 
possibility that the country's succession issues might be formalized 
at that time.  Advancements in relations with South Korea and the 
U.S. reflect the present internal situation within North Korea. 
 
The Six-Party nations should take advantage of this situation to 
activate discussions about denuclearization.  If they show 
themselves to be willing to provide the help North Korea needs right 
now, progress towards talks might proceed relatively smoothly.  We 
should also positively consider negotiations about a peace regime 
(on the Korean Peninsula), which the North emphasizes.  Since North 
Korea's nuclear dismantlement is directly linked with its security 
guarantee, denuclearization efforts and the establishment of a peace 
 
SEOUL 00000005  004 OF 005 
 
 
regime should go hand in hand.  For the U.S., which must consider 
domestic public opinion, the establishment of a peace regime may be 
less burdensome than a complete normalization of relations with the 
North. 
 
Now more than ever, we need a change in the South Korean 
government's policy approach.  Past experience has shown that 
inter-Korean relations and the nuclear issue move in tandem with one 
another, and improved inter-Korean relations would have the effect 
of encouraging discussions on a peace regime. 
 
Yet by setting resolution of the nuclear issue as a precondition for 
improving inter-Korean relations, the Lee Administration succeeds 
only in (limiting progress) on inter-Korean relations and 
denuclearization and in pushing South Korea to the periphery of 
international discussions pertaining to the future of the Korean 
peninsula.  The Unification Ministry's 2010 policy plan contains no 
mention of resolving pending issues such as the resumption of the 
Mt. Kumgang and Kaesong tourism ventures, or of increasing 
inter-Korean exchange and cooperation efforts.  Given these 
circumstances, an inter-Korean summit would be unlikely to produce 
any real results even if one were scheduled to take place. 
 
This 2010 year will mark a decisive turning point in discussions on 
issues affecting the Korean Peninsula.  The U.S., China and Japan 
are all preparing for this, and North Korea is likewise responding 
favorably.  The South Korean government must not remain caught up in 
its rigid thinking and allow this chance to pass it by. 
 
(This is a translation provided by the newspaper, and it is 
identical to the Korean version.) 
 
 
TIME TO DISCUSS REVISING ROK-U.S. ATOMIC ENERGY AGREEMENT 
(JoonAng Ilbo, January 4, Page 30) 
 
After the ROK won a deal from the United Arab Emirates (UAE) to 
build nuclear power plants, it has become necessary for the ROK to 
revise the ROK-U.S. Atomic Energy Agreement.  At a meeting held at 
the National Assembly late last year, Minister of Knowledge Economy 
Choi Kyung-hwan said that control of raw materials and reprocessing 
provisions in the ROK-U.S. Atomic Energy Agreement are "excessive." 
Previously, in July 2009, some ROK politicians called for nuclear 
sovereignty.  With the agreement expiring in 2014, there is an 
outpouring of opinions on this issue. 
 
A call to revise the ROK-U.S. Atomic Energy Agreement is reasonable 
in economic and environmental aspects.  Most of all, since 
high-level nuclear wastes stored in a nuclear power plant will reach 
a saturation level in 2016, we should urgently come up with a plan 
to reprocess spent fuel.  To this end, ROK nuclear scientists 
developed a new technology called pyroprocessing and eagerly wait 
for a revision of the agreement.  With the adoption of the new 
technology, most of the spent nuclear fuel will be recycled to 
generate nuclear power.  This will reduce high-level nuclear wastes 
to less than one twentieth.  In addition, with this technology, it 
will be hard to extract plutonium, which is used for nuclear 
weapons.  Therefore, we can minimize costs and side effects of 
nuclear power generation. 
 
Even though the pyroprocessing technology has paved the way for 
peaceful use of nuclear power, the agreement prevents the ROK from 
reprocessing (spent fuel.)  The ROKG should make all-out efforts to 
devise a strategy to persuade the USG to revise the agreement. 
 
However, an argument for nuclear armament, which some ROK 
politicians are raising, is very dangerous.  This would ruin the 
ROK's international status, potentially imperiling its survival. 
The ROK cannot live isolated from the international community like 
North Korea.  In particular, we should be wary of this argument 
because it may even hamper our efforts to utilize nuclear power 
peacefully. 
 
 
 
SEOUL 00000005  005 OF 005 
 
 
STEPHENS