Local paper headlines_Oct.17

1. Chosun Ilbo

- Since North Korea’s N-test, major banks in China is reported to partially block or restrict remitting money to North Korea, especially in Dandong area, where trade between China and North Korea is very active. A Chinese source says “I don’t think the Chinese government ordered banks to do so, I think banks are voluntarily starting to restrict transactions with North Korea.”

- Cheong Wa Dae decided to stick to its economic engagement with North Korea considering that if it stops the two projects namely Mt. Kumkang Tour and Kaesung Industrial Park, it could have negative impact on foreign investors, said Moon Jung-in, a professor at Yonsei University.

- From next year, woman and man can get legally married when they turn 18 years old (20 in Korean age). The current law allows a woman to marry at 16 and a man at 18, but the law is to be revised due to sex discrimination.

- North Korean defector Ahn Myong-churl said political offenders had been mobilized to construct underground tunnel near Mt. Mantap in Hamkyungbuk-do where North Korea is believed to have conducted a nuclear test. He worked as a security guard in a concentration camp for political offenders in Kyungsung (경성)and Heoryung(회령) and from 1987 young and healthy inmates of the camp had been mobilized under the name of “great construction,” which he believed was the construction of nuclear underground tunnel.

- Chosun survey of executives at 20 big domestic companies shows that 90 per cent of respondents think increasing uncertainty is the biggest problem since the nuclear test. Asked whether they will change business plan for next year due to the test, 50% say they will make ‘a little adjustment’ while 45% say they don’t have such plan. Of the question on how much the test influences the economy, 65% say it is premature to tell the impact and how the whole situation plays out is more important for the future economy. Half of the respondents consider the government’s response to the test as ‘a bit inappropriate’ and 10% say ‘very inappropriate.’

2. Maeil Business Daily

- The price of won increased to a eight-year-and-11-month-high against the Japanese yen, closing at 798.71 won against 100 yen yesterday, up 1.42 from a day ago, which can make exporting companies feel hard-pinched.

- Samsung Electronics is predicted by the securities sector to continue its high operating profits in the fourth quarter as well due to the expected increase in Nand Flash price and buoyant LCD sales.