Local paper headlines

1. Chosun Ilbo

- As Kang Jae-sup, supported by former leader Park Geun-hye, received the biggest vote followed by Lee Jae-o backed by Lee Myung-bak, and was elected a new leader yesterday, the party is expected to suffer bigger rift due to increasing disagreement between two factions. Kang garnered 5254 votes or 25 per cent of approval rating, followed by Lee with 4791 votes or 22.8 per cent.

- The prosecution started investigation into Moon Byong-wook, CEO of Sun & Moon Group, over alleged misappropriation of tens of billions won and breach of trust. He was probed in 2003 on suspicion of giving slush funds to aides of then-presidential nominee Roh Moo-hyun.

- The second tallest twin towers only after 160-story burj-Dubai in the United Arab Emirates will be built in Song-do city in the free economic zone of Incheon.

- The Korean government doesn’t feel happy about the fact that Japan has been, in fact, preparing a UN resolution that might include possible military power exercise on North Korea but hasn’t consult South Korea over the matter.

- In the second round of FTA negotiations, Korea and the US agreed to more strictly apply rules of origin on imported cars. When imported cars do not use a certain percentage of Korean or US parts, they will be excluded from tariff reduction.

- Hyundai Motor is said to offer the labor union a 4.4 per cent salary increase while the union asked a 9.1 per cent increase. The negotiation seems to face an uphill battle.

2. Maekyung

- Relations between Korea and Japan have soured to a worst level over how to deal with North Korean missile launches.

- Korean Airline has topped number one in terms of cargo transportation for two consecutive years, according to International Air Transport Association. Its competitiveness mainly comes from successful international marketing and sales strategy. About sixty-four per cent of its sales revenue comes from outside Korea.

- The Ministry of Construction and Transportation revealed stricter rules, effective from today, to discourage illegal collusion between apartment owners to drive up house prices, such as frequently announcing real price of the apartment.

- As an alternative to the current 25 per cent ceiling on equity investment, Park Sang-in, professor of Seoul National University, suggested a new system under which the limit on total investment is imposed collectively on a conglomerate, not on an individual subsidiary company.