local paper headlines Oct 26

1. Chosun Ilbo

- The NIS and the Police seeks an arrest warrant for three former 386 activists on charges of espionage. One of them was former member of Democratic Labor Party. The three men are under suspicion that they contacted North Korean spies in March in China.

- Presidential spokesman Yoon Tae-young said of the resignation of Lee Jong-seok that even if the minister changes, there would be no change in policy, emphasizing Lee is not resigning over the failure in North Korean policy but over excessive criticism toward sunshine policy which Lee is representing.

- The Ministry of Science and Technology said yesterday it officially confirmed that North Korea conducted a nuclear test. The ministry said its researchers detected a nuclear material Xenon near a border area of Kangsung in Kangwon-do.

- Uri party again was completely trounced in yesterday’s by-election of which vote turnout was 34.1 per cent.

- North Korea’s ‘Nation Peace and Unification Committee’ warned yesterday “if the South joins in the US-led scheme to impose sanctions on us, we will consider it as a complete disavowal of the 6.15 joint statement by South Korea and as a declaration of confrontation and will thus take necessary measures.” It seems the North warns South Korea not to join in the PSI.

- Park Sam-koo, CEO of Kumho Asiana Group which has recently acquired Daewoo Construction Co. revealed his ambition to buy out the Korea Express Co.

2. Maeil Business Daily

- Bank of Korea said yesterday the Korean economy grew a disappointing 0.9 per cent in the third quarter from previous one and 4.6 per cent year-on-year. Korea’s GDI decreased by 0.2 per cent because of price increase of imported goods and flat prices of export goods.

- Investors are flocking to Kumdan area of Incheon to buy an apartment as the government announced a plan for building a Budang-like new city in that area.

- According to the Ministry of Planning and Budget, the ceiling for the investment into the stock market by the public pension fund will more than double next year. The current ceiling is W6,580 bn but it will increase to W17,260 bn next year.