July 11 local news headlines

1. Chosun Ilbo

- The government is said to oppose to the UN Security Council Resolution aimed at imposing sanctions on North Korea for its missile test firing. A government official familiar with the matter said “it is not desirable for us to express our position on a particular resolution when we are not a member of Security Council,” a remark that is understood as an expression of obvious opposition. The vote on the resolution was postponed.

- On various economy-stimulating measures suggested by Uri Party, Finance Minister nominee Kwon O-kyu said, “the economy is expected to continue its growth trend so (I am not considering) further pump-priming measures and stick with the current policy line.”

- Typhoon Ewiniar died down last night, but it left its severe mark on southern, central, and eastern part of the peninsula, claiming at least six lives. Meanwhile the fourth typhoon Bilis is heading for the peninsula from off the coast of Taiwan.

- Seoul is considering dropping its stance on getting ‘Made in Kaesung’ products acknowledged as ‘Made in Korea’ ones, according to a government official close to the matter. “Because of North Korea’s missile firing, it is now impossible to get concession from the US,” and “the government is thinking to give up on Kaesung issue in the Korea-US FTA negotiation and bring up the issue later in line with the resumption of stalled six party talks.” He added the government will not officially withdraw the issues from the on-going negotiation but use it as ‘bargaining chip’ to get concession from the US in the controversial fields such as agriculture.

2. Maekyung

- Government’s project to develop ‘Innovative City’ around the country can be a failure due to lack of research and time constraints, said some experts. Last year the government has designated 10 cities as an innovative city where 175 government agencies will be relocated as part of the balanced development plan.

- Japanese officials are increasingly embracing a radical measure to preemptively strike North Korean missiles bases. “There is the view that attacking the launch base of the guided missiles is within the constitutional right of self-defense. We need to deepen discussion,” said Chief Cabinet Secretary Shinzo Abe.
- The US demands South Korea the opening of online education market. US chief negotiator Wendy Cutler said in a press conference held at Shilla hotel, Seoul “we are not interested in opening up education and medical markets, but we are interested in market access to internet educational service and test services such as SAT.”


3. Naver

- US and Japan’s surveillance satellites spotted a move indicating North Korea is ready to fire another two Nodong missiles, Yomiuri Sinmun quoted Japanese officials as saying.

- Military authorities estimate North Korea spent W60 bn in developing and firing 7 missiles recently being test fired. Some experts point out that Seoul’s assistance for six years since the 2000 historic inter-Korean summit made it possible for Pyongyang to spend such a huge amount of money. Given North Korea’s 2005 budget, revealed at a third meeting of Supreme People’s Assembly, was $2.59 bn, the spending on missiles amounts to 2.5 per cent of the whole annual spending. Another calculation with the real exchange rate ($1 = W3,000) points that the money might take up half of its annual budget.

- Gasoline price reaches an all-time high to 1289.32 mainly due to traffic tax increases.

- Cheong Wa Dae said this morning of Japan’s core cabinet members’ argument on the justification of preemptive strike on North Korea’s missile launch base, “Japan is showing its aggressive nature, which is very worrisome.” “Given the painful history that Japan invaded (us) under the pretext of protecting its nationals living on the Korean peninsula, this is a very intimidating remark that hampers peace not only on the Korean Peninsula but also in North East Asia,” Press secretary Chung Tae-ho said.

4. Daum

- A school in Suwon is reported to have forged ahead with school excursion to Jeju Island amid parents’ strong opposition over typhoon yesterday. 460 students were grounded in Kimpo airport over 7 hours due to flight cancellation on bad weather.

- The main opposition Grand National Party is due to elect five-member of new leadership among 8 candidates this afternoon. The party leadership race is understood by many as a proxy battle between the two leading presidential candidates, Lee Myung-bak and Park Guen-hye.

- WSJ reported rich Koreans are staring to buy out houses in the US. Citing data from the BoK, the paper said Korean’s direct investment in the US amounted to $570 million during the first quarter of this year, nearly reaching the half of last year’s whole investment with $1.27 bn.