Local Paper headlines _ September 14

1. Chosun Ilbo

- It was confirmed that the US sent out a letter containing the need to take vigorous measures against North Korea on the back of a UN resolution not only to six party members but also all 160 UN members. A high-ranking US official told Chosun Ilbo that the US would forge ahead with the plan with or without South Korea’ consent.

- Park Seong-jun, Professor at Sung Kong Hoe University and the husband of Prime Minister Han Myeong-sook, is reported to have until very recently participated in the fierce demonstration against US army base relocation to Pyeongtaek. He stopped joining in the move in May.

- Cheong Wa Dae expressed regret over flaws in the nomination process for the new head of the Constitutional Court, but the Grand National Party said the statement fell short of an apology. The current president’s term expires today.

- Foreign investors continue their selling spree in the Korean stock market. Korea Exchange announced yesterday foreigners’ selling totaled $2.88 bn in August alone, which is bigger than last year’s total sell-off of $2.23 by foreign investors. Foreign investors are said to believe stock price increase in the Korean market will not be high due to Korean company’s disappointing sales figure and the overall sluggish economy. And anti-sentiment toward foreign capital weighs heavy on the sell-off more than uncertainty coming from North Korea nuclear threat. John Lee at Lazard Asset Management said “North Korea’s nuclear problem is a short-term concern but the sentiment is a bigger concern that can shake the fundamental.”

2. Maeil Business Daily

- Real estate experts say the government excessive move to crack down on property speculation caused the current crisis in which ordinary people can’t find a leased house to move into. The number of available leased house is only half that of last year and the price also increased compared to a year earlier.

- Fair Trade Commission approved E-land’s takeover of Carrefour on condition that Eland should sell three Carrefour branches within six months to prevent company’s excessive market share.

- Kum-ho Asiana is reported to have asked Daewoo Construction creditors to reduce the take-over price by more than W1000 bn from its bidding price of an estimated W6600 bn. The maximum price that Kumho can bargain is W990 bn. The company begins today discussing with KAMCO on the final terms of the deal.

- Hyundai Motors will establish a R&D center in Chennai, India, which will be up and running in two years and employ 1,000 engineers.