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UNCLAS SECTION 01 OF 03 SEOUL 000146 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MARR ECON KPAO KS US
SUBJECT: SEOUL - PRESS BULLETIN; FEBRUARY 2, 2010 
 
TOP HEADLINES 
------------- 
 
 
Chosun Ilbo 
Hyundai Heavy Industries' Labor Union to Reduce Number 
of Full-Time Union Members by a Third 
 
JoongAng Ilbo 
Possibility of Short-Range Missile Launch by N. Korea; 
North Designates Additional "No-Sail" Zones 
 
Dong-a Ilbo 
Most Students Admitted to Seoul National University This Year Are 
Graduates of Special-Purpose High Schools 
 
Hankook Ilbo 
Problems at Toyota, JAL Taint Japan Inc.'s Image 
 
Hankyoreh Shinmun 
Trade Deficit Tops $470 Million 
 
Segye Ilbo 
Steep Rise in Prices for Public Utilities; ROKG's Promise 
to Regulate Public Utility Rates Just Empty Words 
 
Seoul Shinmun 
U.S. to Strengthen Long-Range Strike Capability 
against China's Threats 
 
 
DOMESTIC DEVELOPMENTS 
---------------------- 
 
The two Koreas held working-level talks yesterday over the operation 
of the joint Kaesong Industrial Complex in the North, but failed to 
narrow their differences. The ROK wanted to discuss the issues of 
border passage, customs clearance and telecommunications, but the 
North insisted on discussing wages hikes for its workers at the 
complex. (All) 
 
According to military sources, the North designated five additional 
"no-sail" zones off the country's west and east coasts on Jan. 31, 
raising concerns over the possibility of a short-range missile 
launch. (All) 
 
The ROK Navy inaugurated its first Aegis destroyer-led squadron 
yesterday in an effort to develop its blue-water operational 
capability beyond coastal defense. (All) 
 
According to the Supreme Prosecutors' Office, 
c-o-n-f-i-d-e-n-t-i-a-l military information including the location 
of North Korea's radar installations collected jointly by the ROK 
and the U.S. was leaked by an ROK military officer. (JoongAng, 
Hankook) 
 
 
INTERNATIONAL NEWS 
------------------ 
 
The Pentagon, in its latest Quadrennial Defense Review (QDR), 
reportedly viewed North Korea's and Iran's ballistic missile tests 
as the first threat, and said that geographic containment of "areas 
of concern" will be necessary to prevent the proliferation of 
weapons of mass destruction. (Hankyoreh) 
 
 
MEDIA ANALYSIS 
-------------- 
 
¶N. Korea 
--------- 
All ROK media gave play to North Korea's Jan. 31 designation of five 
 
SEOUL 00000146  002 OF 003 
 
 
additional "no-sail" zones off the country's west and east coasts. 
This latest move by the North followed its declaration on Jan. 25 of 
two "no-sail" zones near the Northern Limit Line (NLL) in the Yellow 
Sea, the de facto inter-Korean sea border.   According to media 
reports, the ROK placed the military on high alert for the 
possibility of a short-range missile launch by the North. 
 
Yesterday's inter-Korean working-level talks over the operation of 
the joint Kaesong Industrial Complex also received wide press 
coverage.  According to media reports, the talks ended without 
agreement, with the North insisting on discussing wage hikes for its 
workers at the complex while the ROK wanted to address the issues of 
border passage, customs clearance and telecommunications. 
 
With regard to growing talks of a possible inter-Korean summit, 
sparked by President Lee's remark that he may meet with North Korean 
leader Kim Jong-il this year, conservative Chosun Ilbo quoted an 
ROKG source as saying: "Pyongyang would prefer June 15, the 10th 
anniversary of the first inter-Korean summit, as the summit date. 
But we want to achieve important progress in denuclearizing the 
Korean Peninsula on the 60th anniversary of the outbreak of the 
Korean War."  The report went on to say: "However, experts say that 
the anniversary of the war is not an ideal date since it started 
with an invasion from North Korea, making Liberation Day (August 15) 
a far likelier option." 
 
-Taiwan Arms Sale 
------------------ 
Conservative Chosun Ilbo carried an article entitled "China Declares 
Sanctions against U.S. Companies that Sell Taiwan Weapons; U.S. 
'Will Not Yield.'"  It said:  "Washington seems to view the Chinese 
move as aimed at taking the initiative in bilateral relations, so it 
will not likely retract its decision to sell weapons to Taiwan. 
However, there is a possibility that the U.S. may adjust the timing 
and size of its arms sales to Taiwan." 
 
Conservative Dong-a Ilbo wrote in the headline: "'U.S., Don't Sell 
Weapons to Taiwan;' 300 Million Chinese Give Signatures to Protest 
U.S. Arms Sales" 
 
 
OPINIONS/EDITORIALS 
------------------- 
 
ROK, U.S. SHOULD RUSH TO RATIFY KORUS FTA 
(JoongAng Ilbo, February 2, Page 34) 
 
U.S. President Barack Obama said that if congressional ratification 
of the Korea-U.S. Free Trade Agreement (KORUS FTA) is delayed any 
further, there will be a cost to U.S. companies (in terms of lost 
business opportunities). He added, "The European Union (EU) is about 
to sign a trade deal with the ROK.  The Europeans might get in there 
(ROK) before we do."  In his State of the Union address, Obama said 
that the U.S. should "strengthen its trade relations with key 
partners like the ROK, Panama and Colombia."  In the past, the U.S. 
government had expressed concern over auto provisions in the deal. 
 
 
It is hard to believe whether this U.S. change in attitude is 
genuine.  President Obama did not specify when he will move to seek 
congressional approval for the agreement.  U.S. government officials 
also are taking a passive approach to ratification of the trade 
deal.  U.S. Assistant Secretary of State for East Asian and Pacific 
Affairs Kurt Campbell called on the ROK to remain patient in the 
ratification of the pending free trade deal, adding that the two 
countries will have to "wait and see."  Even though the U.S. voices 
dissatisfaction with the auto provisions, it has not yet come up 
with any "benchmark" for review or specific demands. 
 
The KORUS FTA has languished in Congress for more than two and a 
half years after both countries signed the agreement.  Last year, 
President Lee Myung-bak said, "If there are any problems in the 
automobile sector, we are ready to resolve this issue."  President 
Obama emphasized, "We will double our exports over the next five 
 
SEOUL 00000146  003 OF 003 
 
 
years, an increase that will support two million jobs in America." 
Therefore, the U.S. is very likely to actively move towards 
(ratification of) the KORUS FTA, brightening the prospects for the 
accord. 
 
In the U.S., there is the proverb "Make hay while the sun shines." 
President Obama said, "If the U.S. sits on the sidelines while other 
nations sign trade deals, we will lose the chance to create jobs on 
our shores."  This remark is right.  Now things are turning positive 
for ratification of the KORUS FTA.  We should not engage in 
renegotiation which may require an overhaul of the agreement. 
Instead, the two countries should resolve any problems in a wise 
manner, for example, by amending the annex, exchanging side letters 
or signing a voluntary agreement between industrial sectors.  This 
is the time for President Obama to make a decision (to move the FTA 
forward.) 
 
 
ROK, U.S. SHOULD REVISE BILATERAL ATOMIC ENERGY AGREEMENT BASED ON 
THE SPIRIT OF ALLIANCE 
(Dong-a Ilbo, February 2, 2010, Page 35) 
 
The ROK and the U.S. have started early-stage discussions to revise 
the bilateral peaceful nuclear cooperation agreement.  Second Vice 
Foreign Minister Chun Young-woo visited Washington last week to set 
the stage for the revision of the agreement, which expires in 2014. 
U.S. Deputy Secretary of State James Steinberg also implied that, 
with regard to the reprocessing of used nuclear fuel, which was the 
focus of the discussions, the two nations have undertaken a 
feasibility study on "pyro-processing." 
 
Nuclear reprocessing is a pending issue at the national level.  As 
of 2008, spent nuclear fuel stockpiled in atomic power plants 
amounts to over 10,100 tons.  If the use of electricity continues to 
grow like this, the ROK will have more than 50 nuclear plants by 
¶2100.  For the safe disposal of nuclear fuel which will have been 
accumulated by then, we should find bedrock or a blanket of mud at a 
depth of about 500 meters and dig a 14 km2-wide pit.  An appropriate 
alternative to this is to reprocess used nuclear fuel for energy 
production and reduce nuclear waste. 
 
Under the U.S.-ROK peaceful nuclear cooperation agreement, which 
stipulates, "If (the ROK) wants to change the shape and substance of 
used nuclear fuel, it should seek the consent of the U.S.," the ROK 
has not attempted to reprocess spent nuclear fuel.  Just as choosing 
nuclear power for energy production is a matter of sovereignty, so 
is reprocessing used nuclear fuel.  The U.S. already allows Japan to 
reprocess its spent nuclear fuel.  Now is the time for the U.S. to 
show a forward-looking attitude in pushing for the revision of the 
agreement so that the ROK will also be permitted to reprocess its 
spent nuclear fuel. 
 
The reprocessing technology used by France and Japan goes through 
the process of extracting plutonium, a raw material for nuclear 
weapons, and reduces the quantity of nuclear waste by only five 
percent.  However, "pyro-processing," a new technology being studied 
by the ROK, does not produce plutonium and cuts the amount of 
nuclear waste to one tenth.  The U.S. also has an accumulated 77,000 
tons of spent nuclear fuel.  A study on pyro-processing could be a 
win-win solution for both nations. 
 
The revision of the agreement is a sensitive issue related to the 
North Korean nuclear issue.  The U.S. is concerned about the impact 
of nuclear reprocessing on nuclear proliferation.  Ever since the 
ROK adopted the Joint Declaration of the Denuclearization of the 
Korean Peninsula in 1992, it has adhered to the principle of zero 
tolerance for a nuclear North Korea.  The ROKG needs to argue in a 
dignified manner that the peaceful use of nuclear energy is our 
goal. 
 
 
STEPHENS