local paper headlines _Nov 2

1. Chosun Ilbo

- US Secretary of State Condoleezza Rice told the New York Times that the US would demand a verifiable dismantlement of North Korea’s nuclear program or the resumption of IAEA inspection when the six party talks would be held.

- The government is considering resuming the shipment of rice and fertilizer to North Korea as soon as the news of the North’s willingness to come back to the negotiation table broke out. Unification Minister Lee Jong-seok said in a radio interview the government would review when to resume the shipment and the shipment date would be decided sooner or later.

- Security authorities are said to investigate into the phone list of Chang Min-ho to find out whom he has contacted with. When the list becomes revealed, the repercussion is expected to be massive throughout the political sector.

- The government is set to unveil a massive development project in the southwest province of the country. According to the project, a tourist complex and logistics centers will be built in the area by the year 2016 with an estimated budget of W7,000 bn.

- The prosecution is understood to be considering seeking arrest warrant for former president of KEB Lee Kang-won on suspicion of breach of trust. Lee Kang-won was summoned last week as a suspect for investigation.

- Shinsegae decided to file a lawsuit against the Fair Trade Commission for conditional approval for its takeover of Wal-Mart Korea. The FTC approved the take-over on condition that Shinsegae sells 4-5 stores to prevent monopoly.

2. Maeil Business Daily

- A high-ranking government official said “we agreed with the US before to form a financial working group to deal with the BDA issues when the North agrees to come back to the six party talks,” and “forming such a group is one of the ideas that we have brought up.”

- Chae Dong-wook, leading prosecutor in the Loan Star case, reiterated his willingness to handle the case in a stern manner. He said “if convicted, we will punish them according to law.” “Vice president of Loan Star is very important post and seeking arrest warrant was based on a careful consideration,” he added.

- The financial authorities put a brake on mortgage loans provided by local banks, asking banks to strictly follow the LTV (Loan To Value ratio) and restraining themselves from excessive competition.

- In the parliamentary audit yesterday, the Grand National Party blasted the MOFAT for failing to join the meeting between China, the US, and North Korea in which the North surprisingly agreed to the resumption of the six party talks. GNP lawmakers contended Korea has been always pushed aside whenever important things happened regarding North Korean issues.

- Inno Design plunges into a new business of producing its own digital products, by launching Innoman. Lee Soon, CEO of Innoman, said “the company is in charge of planning a digital product and global marketing, and we will make a technical tie-up with other companies and outsource works.”

- Two shareholders of Hyundai Merchant Marine Co. filed a lawsuit, as representatives of the company’s shareholders, against Hyundai Group CEO Hyun Jung-eun and HMM CEO Roh Jung-ik for W42.4 bn in damage that they are alleged to have caused to the company by selling company shares at a 20 per cent discounted price and buying shares of unlisted Hyundai Logistics at a high price for management control.