Local paper headlines_October 12

1. Chosun Ilbo

- The government is said to have decided not to stop inter-Korean business of Kaesung Industrial Park and Mt. Kumkang tour even if the US-led UN resolution to punish North Korea is adopted. A government official close to the issue said “the draft resolution prepared by the US bans transferring to the country assets, money, goods, and technology related to the WMD, but Kaesung Industrial Complex and Mt. Kumkang tour have nothing to do with them.”

- A series of statements urging the scrap of sunshine policy as well as on-going consultation with the US for wartime command transfer are released in the wake of North Korea’s nuclear test. A group of 100 people comprised of former government officials, teachers, and journalists announced a statement at Seoul Press Center yesterday, asking for the dismantlement of Kim Jong-il regime and Roh’s resign. Hwang Jang-yeop also joined in the group.

- The government starts reviewing pump-priming measures, marking a turnaround from its existing position that it doesn’t introduce any artificial economy stimulating measure despite economic slowdown. Officials at the MOFE said North Korea’s nuclear test influenced the changed position but basically the time had come to come up with some measures to revive the slow economy. A MOFE official said “without North Korea’s nuclear test, it is inevitable for the government to change our policy for economy revival.”

- Economic experts in Wall Street think two Korea’s unification after the regime collapse, rather than a nuclear test, will have more bad impact on the Korea economy. John Chambers at S&P said in an interview with Bloomberg that North Korea’s nuclear test was already reflected on the Korea’s credit rating and if North Korea collapsed, Korea would have to take serious financial burden.

2. Maeil Business Daily

- The government seems confused how to deal with North Korea. The government and the ruling party don’t see an eye to eye on whether to join in the PSI. Unification Minister Lee Jong-seok said he didn’t recognize the existence of nuclear weapons whereas Defense Minister Yoon Kwang-woong said he personally believed North Korea proved itself to be a nuclear power. Regarding the engagement policy, it also shows confusion whether to stick to the policy or overhaul it.

- Hyundai Group CEO Hyun Jung-eun said in a meeting with President Roh that the Mt. Kumkang tour would continue even if there was only one tourist.

- 48.2 per cent of Mt. Kumkang tourists canceled their trip today. The cancellation rate is on the rise ever since the nuclear test announcement with 6.1 per cent on the first day of the test and 31.3 per cent the next day.