Local paper headlines

1. Chosun Ilbo

- Sixty per cent of Korean disaster fund goes to reconstruction and recovery and the rest 40 per cent is annually spent on disaster prevention while Japan spends 87 per cent only on preventive measures. Dr. Park Duk-geun in National Institute for Disaster Prevention says “we should shift our focus from short-term damage controlling measures on to long-term preventive ones.”

- The US government is confirmed that it would give back to Korea army operation control in wartime by 2010. The Korean government has been pushing for taking the control back as early as 2011-2012, but army experts voice concern that Korea will not have been ready for the job at that time.

- Kang Jae-seop, newly elected chairperson of GNP, revealed his ambitious plan to ‘overhaul’ the party. In an interview with Chosun Ilbo, he said “what I want to do most as a chairperson is remove the negative image of GNP.” “I will try to completely change the party within 6 months by introducing code of conduct for moral recovery and self-sacrifice.”

- Eugene Group is set to buy out 12.82 bn stocks or 4.87 per cent of Seoul Securities share for W20.5 bn after it bought out 1.41bn shares or 0.53 per cent from July 12 to 14. The group becomes a controlling shareholder of Seoul Securities with 5.4 per cent of the company stock.

2. Maekyung

- Due to heavy rainfall in Gangwon province, farm land was devastated and vegetables all ruined and were washed away. Vegetable prices are expected to go up 2-3 times.

-Kim Jong-il, commissioner of Defense Acquisition Program Administration, is reported to tender resignation this morning over bribery scandal.

- The government designated 18 cities in Gangwon province as special disaster zone. Those cities will get up to 80 per cent of recovery cost.

- “Making inroads into the financial market lays groundwork for M&As in construction and logistics companies. When we get approval from the FSC, we will do our best to take full responsibility and carry out our duty as a controlling shareholder of Seoul Securities,” said Yoo Kyung-sun, CEO of Eugene Group, in an interview with Maekyung.