Local paper headlines_Oct 20

1. Chosun Ilbo

- On the recently adopted UN resolution, US State secretary Condoleezza Rice said in her joint press briefing that all UN members had a duty and responsibility to stop the proliferation of weapons of mass destruction and block the inflow of money that was used to make such weapons.

- The national tax office informed Chosun Ilbo for another tax investigation only five years after the last probe in 2001.

- A Chinese diplomatic source said North Korean leader Kim Jong-il told Tang Jianxuan that he would come back to the six party talks if the US lifted financial sanctions on the regime. Kim is reported to have said if the US made some concessions, he was willing to make the same move, be it accepting a bilateral talk or a six party talk. According to the source, Kim delivered an apology for the test to his Chinese counterpart.

- Ri Churl, North Korean Ambassador to the Switzerland, met with ruling party lawmakers at the sideline of the IPU (Inter-Parliamentary Union) in Geneva and complained about the US’s ‘interruption’ into the Kumkang mountain tour. Ruling party representatives said Mr. Lee asked that Seoul should continue its firm position on the tour.

2. Maeil Business Daily

- GNP leader Kang Jae-sup, marking 100 days since he was appointed a leader of the opposition party, said of a possibility of inter-Korean summit as a solution to North Korea nuclear test, “it is very inappropriate.” “A summit meeting is supposed to be held when the mood is good, but right now the relations have become very sour.”

- A number of local economic institutes have been issuing a report that points to a possibility for North Korean economy to contract due to reduced financial assistance from China and South Korea. Korea Institute for Industrial & Economic Trade predicts North Korea would suffer food production shortage of more than 1m ton every year if South Korea suspends it annual 0.35 ton fertilizer shipment. The state-run Korea Institute for International Economic Policy predicts the North Korean economy is expected to post negative growth in 2007, the first time since the economy suffered nine consecutive years of contraction between 1990 and 1998.

- SK Communications Co. has acquired a 24.4 per cent stake in Empass, the country’s third largest portal and search engine by visitors, for W37.2m. SK Communications will also buy a 29.5 per cent stake in Konan Technology Inc. which provides search Know-how to Empas.

- Among executives and CEOs of conglomerates, Yoon Jong-yong, vice-president of Samsung Electronics, receives the highest monthly salary with W2.1 bn. Lee Kun-hee monthly earns W1 bn, the fattest among CEOs, followed by Chung Mong-koo of Hyundai with W0.77 bn.