Local paper headlines_September 25

1. Chosun Ilbo

- As universities put more emphasis on student’s essay ability in the entrance exam, foreign-capital-backed essay institutions make aggressive inroads into the lucrative market, which is expected to grow into a market worth trillions of won in the next 3-5 years.

- Lee Young-hoon, head of the Supreme Court, is understood to express sorry tomorrow for his remark which has infuriated prosecutors and lawyers. His remark is expected to allay their anger.

- Korea Tourism Organization is alleged to have paid W90bn for Hyundai Asan-owned facilities in Mt. Kumkang, which is only worth W34bn. The organization bought out the facilities in 2001-2002 at a time when Hyundai Asan was in deep financial trouble. It is suspected that the difference in balance might go to North Korea.

- Lee Ku-taek, CEO of POSCO, again stressed the need for going global. He addressed new staff on September 20, “the domestic steel market is mature with oversupply so we can’t produce any more profit here.” “For a new success miracle, we should advance to other countries such as China, India, Mexico, Brazil, Turkey, Poland and South East Asia where demand is high,” he underlined.

-Civic groups intensify their criticism against KTF and LG Telecom which have earned W108bn for caller ID service from February to July while SK Telecom has been providing the service free of charge for users since January.

2. Maeil Business Daily

- The government decided to incorporate four public insurances including public health insurance, pension fund, employment insurance, and industrial accident insurance, from January 2009. But labor unions at the four government insurance companies are set to stage a strong protest against the plan, which will serve as a huge stumbling block for the plan.

-Korea, China, and Japan are fighting fiercely for resources in Central Asia which is emerging as a very attractive energy supplier, alternative to the Middle East.

- President Roh will have a summit meeting with Chinese President Hu Jintao next month in Beijing. They are expected to discuss the resumption of six party talks and China’s controversial history distortion.

- Consumer sentiment is very bad in the run up to Korea’s one of the biggest festivals, Chuseok. Consumer Expectation Index was 93.7 in August, the lowest point in 19 months. Bank of Korea’s Consumer Psychological Index was below the average 100, marking 96 in the third quarter.