local paper headlines

1. Chosun Ilbo

- The construction market shows the worst performance since the 1997-8 Asian financial crisis and exerts negative influence on the overall economic performance. The economic growth seemed to be picking up from the second half of last year, but the Bank of Korea revealed July 25 that net increase in GDP in the second quarter was a meager 0.8 per cent, lower than expected 0.9 per cent.

- The Supreme Court ordered Korea Railway Worker’s Union to compensate W2.44 bn to Korea Railroad for incurring damages by launching 4-day illegal strike in 2003. Meanwhile Posco also prepares for suing Pohang Construction Labor Union for damages.

- Finance Minister Kwon O-kyu is reported to have said “(I will) not play golf during my term and spend the weekends doing mountain climbing. “It is not good for government officials to play golf while people are suffering from flood,” implying it would be also difficult for officials in the Finance Ministry to play golf.

2. Maekyung

- ‘Apartment distribution system’ will be overhauled from 2008. The changed system will work more favorably to a household which hasn’t owned a house for a long time and comprises many and old family members.

- A high ranking government official said that the government confirmed the BoC’s measure to freeze North Korean bank accounts.

- The government is set to introduce the revised bill under which health insurance will cover only cost-effective medicines. Under the existing bill health insurance covered all medicines which were proved effective.

- Gasoline prices hit a record high with W1544.76 per liter due to unstable political situations on the Korean peninsula and the Middle East.

- It is reported that Hite is trying to get Jinro listed in the US, UK, and Korea stock markets. Securities experts analyze that if Jinro can get listed in several countries, there will be many advantages: first it can easily attract overseas investment; second the company can avoid possible Korean market instability by putting eggs in several baskets. If the plan succeeds, aggregate market value of Jinro will be expected to be far over W5000bn, analysts assume.