local paper headlines_Oct 30

1. Chosun Ilbo

- Ilsimhoe, the underground spy group headed by Chang Min-ho, is said to have sent North Korea at least 46 reports which included intelligence on South Korea’s political and military situation. Among those reports contain political responses in the wake up of North Korea’s N-test, the reasons behind the failure to sack Defense Minister Yoon Kwang-ung back in 2005, methods to help Uri party candidate for Seoul mayor be elected in the 5.31 local election, and measures to spread anti-US movement in S.Korea especially using environment groups.

- NIS head Kim Seung-gyu who announced to resign last week said “the spying incident is very shocking.” Asked whether the incident make any influence on his resignation, he neither confirmed nor denied.

- The prosecution is investigating into Uri Party Rep. Chung Dong-chae and Lee Mi-kyung on suspicion that they have received slush funds from illegal gambling stores for business favor.

-GNP committee on North Korean nuclear crisis argued yesterday that most of the $0.6bn South Korea has sent to the North for Kumkang Mount Tour since 1998 landed on the hands of the regime’s worker’s party and military.

- If Korea is hit by ‘three misfortunes,’ namely North Korea’s another nuclear test, a strong won, and high oil prices next year, the economic growth can hit as bottom as 1.9 per cent in the worst scenario, says a report by Korea Economic Research Institute.

2. Maeil Business Daily

- It has been almost four months since Jeju Island was designated as a special administrative region but Jeju local people say they hardly feel any difference or improvement made after the designation. Rather they say changed regulations make things more difficult and inconvenient for them.

- House prices of Kumdan region of Inchoen, which has been named as a new development city by the government a few days ago, went up so high that real estate transactions have virtually all but stopped. Meanwhile the construction ministry and the national tax office will start to clamp down on speculative moves in that area from tomorrow.

- Ambassador to China Kim Ha-joong, Presidential Advisory Council on Democratic and Peaceful Unification chief Lee JAe-joung are the most likely candidates to become the next unification minister. Army Chief of Staff Gen. Kim Jang-soo, former Vice Chief of Staff of the Air Force Bae Yang-il and Uri Party Rep. Chang Young-dal are tipped as the most leading candidate for the next defense minister.

- Samsung Corporation is set to sell Samsung Plaza in Bundang and totally withdraw from the retail business. The company will announce a prime bidder early next month and conclude a contract by the end of next month. Currently Aekyung Group, Samsung Tesco, and Hyundai Department Store are participating in the bidding process, and Aekyung is said to be the most competent bidder with the offered price tag of W560 bn, which the company denied.

- In the year to September, foreign direct investment totaled $0.79 bn, only one quarter that of the same period last year, said the Bank of Korea. Picture is bleaker for indirect foreign investment with foreigners selling off $2.96 bn worth of stocks. Meanwhile overseas investment by locals dramatically increased to $4.97 bn, up 50 per cent from a year ago.