Local paper headlines_September 8

1. Chosun Ilbo

- The Ministry of Foreign Affairs and Trade announced yesterday that Korea doesn’t consider a Chinese research institute’s biased history information on Koguryo, Korea’s ancient kingdom, as an official position of Beijing. In a briefing, a MOFAT official said, “we believe the Chinese government is trying to uphold the 2004 mutual verbal agreement on that matter.”

- Shinsegye’s honorary president Chung Jae-eun gave all of his shares, 7.82 per cent of the company share, to his eldest son Chung Young-jin, vice-president of the company, and his daughter Chung Yoo-kyung, executive director of Chosun Hotel. Each received 840,000 and 634,571 shares respectively. The company said it would properly pay donation tax worth about W350 bn.

- China signaled a possibility of Kim’s visit to the country, saying “China and North Korea is in traditionally friendly relations and each country’s leaders also have had amicable visits to each other,” and “we well let you know in a timely manner if there is any high-ranking official’s visit between the two countries.”

- Ahead of a summit meeting between Korea and the US on September 14, there is a sign that the US might take a comprehensive sanction against North Korea. State Department spokesman Sean McCormack said two days ago that the US was discussing additional sanctions under the framework of the UN resolution condemning North Korea’s missile tests, but declined to give further details.

2. Maeil Business Daily

- Daewoo Electronics, Korea’s third largest consumer electronics company, is likely to be sold to an Indian company as a consortium led by Videocon of India was chosen as a preferred bidder by a group of creditors led by Wooribank. Videocon decided to buy out 100 per cent of Daewoo Electronics shares worth W670 bn from the creditors.

- Hyosung Corp. strikes a $3.2 bn deal with Goodyear Tire & Rubber Co. Under the deal, the Korean company will supply tire cords, fabric reinforcements that boost a tire’s durability and safety, to the US company. Hyosung took over four tire cord plants in the US, Brazil, and Luxemburg from the US biggest tiremaker, further cementing its position as the world’s largest tire cord maker.

- US FTA negotiators demanded that Korea repeal any preferential treatment for its ‘special banks,’ such as Industrial Bank and Nonghyup Bank. On controversial issues, such as agricultural products and medicine, the two countries still don’t see eye to eye.

- The Ministry of Education revealed yesterday that it has established a council consisted of nine people from all walks of life. The council, led by Park Seung, former governor of Bank of Korea, will decide who should take charge of spending Samsung –donated W800 bn and where the donation goes. It is believed that the donation will be mainly used for scholarship for underprivileged children.