local paper headlines_Nov 14

1. Chosun Ilbo

- Amid mounting criticism for failure to deal with real estate policy, it is reported that the presidential blue house passed the responsibility now to the Finance Ministry. Up to now, property market policies have been made by Cheong Wa Dae economic advisors but it is expected that the matter will be handled with more market-friendly hands in the finance ministry.

- Construction Minister Choo Byung-jik is likely to resign mainly over his premature announcement of a new city development plan. He said “I won’t shirk my responsibility.”

- It is reported that government’s plan not to fully join in the US-led PSI was decided without proper consultation with the ruling party in which opinions were very divided on that matter. The government unilaterally announced its position on the PSI while disregarding minority opinions inside the ruling party.

- The prosecution sought arrest warrant for former financial official Byeon Yang-ho for alluding with Lee Kang-won to help Loan Star buy KEB at a discounted price. It also sought arrest warrant for Ha Jong-sun, president of the Hyundai insurance company, who is alleged to lobby Byeon on behalf of Lone Star.

2. Maeil Business Daily

- Small and medium-sized companies are suffering from a rising won against Japanese yen. It is reported that 12 per cent of the companies are giving up on exports to Japan. The exchange rate of won against yen hit the lowest since Oct 31st 1997.

- The west seashore is emerging a new Mecca for industrial complex with new plants of LCD, motor, chemical, and steel being built around the area. The popularity of the area is due to its proximity to the metropolitan area and logistics convenience through highways and seas.

- Shipment of rice and fertilizer to North Korea will be halted for the time being in accordance to the UN resolution 1718. As for Mount Kumkang tour, the government will stick to the halting of subsidies, and in the case of Kaesung industrial complex, no further measure except for sale reservation of the first development complex will be taken.

- 550,000 new houses will be constructed near Seoul by 2011, up 110,000 from the previous new city development plan in order to solve house shortage.

- Hana financial group made small changes in its personnel structure and added a M&A specialist from outside. The company brought in Lee Sung-kyu, former vice-president of Kookmin Bank, who will take charge of domestic M&A, future policy coordination, and financial and risk management. Hiring Lee Sungp-kyu is seen part of the company efforts to put more focus on M&As.