Local paper headlines _Oct 18

1. Chosun Ilbo

- As signs are pointing to a second nuclear test by North Korea, it is reported that the US and Japan will come up with a sterner resolution than the Resolution 1718 if the communist regime turns its word into action.

- US government officials reveal their skepticism toward Korea’s economic engagement policy toward North Korea. US chief nuclear negotiator Christopher Hill said of Mount Kumkang Tour, “[it] seems to be designed to give money to the North Korean authorities.” US Secretary of State Condoleezza Rice said to a question about the economic projects “I suspect that a lot of it has to do with what North Korea does.”

- In a first official statement after the unanimous adoption of the UN resolution to punish North Korea, the regime denounced the resolution as a ‘declaration of war led by the US’ and announced it would take necessary measures in accordance with what the US does.

- The KDI (Korea Development Institute) expected yesterday that the economic conditions will deteriorate and the growth rate will be around a disappointing 4.3% next year.

- A Cheong Wa Dae official said yesterday Kim Byung-joon, who was forced to resign August amid the plagiarism controversy of his thesis, is reinstated in the position of policy adviser to president.

- Since the nuclear test by North Korea, Lee Myung-bak’s approval rating has seen the increase the most among presidential hopefuls, said the opinion survey of 700 adults conducted by Research & Research. Former Seoul mayor Lee Myung-bak earned 29.5 % of support followed by Park Geun-hye with 24%, and Ko Kun with 17.8%.

2. Maeil Business Daily

- George Soros, who are staying in Seoul to attend World Knowledge Forum, said “North Korea’s nuclear weapon development is a known fact, and foreign investors are not going to sell stocks because it is not known that the regime has succeeded in the experiment.” “I see North Korea nuclear problems much more positively than the Iraqi issue, and it is possible to solve the [North Korea] problem peacefully.”

- Lotte Shopping eyes on the takeover of C&M, the number two in the MSO (Multi System Operator). According to industry experts, the discussion has began in earnest between the two companies and the price tag is predicted to be about W1,200 bn.

- Former president Kim Dae-jung is recommended by many lawmakers of the ruling as well as opposition parties as a special envoy to North Korea. Rep. Chung Hyung-keun of GNP party said “former president Kim is the one who knows Kim Jong-il well.” Kim, however, rejects the suggestion saying “a special envoy should be someone in the level of minister or prime minister of the current government.”

- The prosecution raided in Citi Group’s Global Market Securities Seoul Office yesterday in connection with the KEB sale to Lone Star. The group acquired Salomon Smith Barney (SSB), the securities firm which managed the merger between KEB and its credit card unit 2003.