local paper headlines_Oct 27

1. Chosun Ilbo

- Cheong Wa Dae is said to criticize the Ministry of Construction and Transportation for its early announcement of building a new city, which has already triggered a speculative move in the designated area. An official from the blue house said “there hasn’t been enough consultation between Cheong Wa Dae and the ministry regarding the announcement.”

- US Secretary of State Condoleezza Rice said the US would bring up its own punitive actions separate from the UN resolution.

- China’s foreign ministry spokesman confirmed in his regular press briefing that the two ethnic Koreans who Korean press reported were arrested in China for possessing enriched uranium were really trying to sell a ‘dangerous material.’

- The NIS and the prosecution confirmed that Jang Min-ho, who was investigated on charges of espionage, had been a member of Rodong Party and trained as a spy in North Korea from 1989 to 1993. Jang partially admitted the charges. The prosecution sought arrest warrants for other two people under the same charge.

- Hyundai and Kia Motors have been aggressively seeking to advance into foreign markets, and thereby overseas investment is rapidly increasing. From 2003 to now, the automobile companies have annually poured W2000-3000 bn for new factory construction overseas and will invest more than W1000bn by 2009, however their domestic investment pales miserably in comparison.

2. Maeil Business Daily

- Hynix continues its outstanding performance with its third quarter producing W435 bn or a 23 per cent of net operating profit. The total sale for the third quarter hit a record high with W1966 bn.

- Exporting companies are selling dollars through financial futures contract. Their selling-off triggers appreciation of won. According to the Bank of Korea, they sold $13.5 bn during the third quarter, which is tantamount to 4.7 times of export net profit during the period.

- Industrial Bank of Korea gave up its plan to acquire LIG Insurance due to huge price differences. A high ranking financial official with the knowledge of the process confirmed that the M&A process ended. The bank, however, still seeks to take over an insurance company.

- As part of its restructuring plan, Doosan Co. is due to sell its food business including Chongga Kimchi to Daesang for W120bn. They are expected to conclude the contract today.

- Monorail construction plan of Kangnam ward office is scrapped because the office concluded the economic feasibility of the project is not very good.