Seoul, today_Jan. 26

- The Federation of Korean Industries re-elected Kang Shin-ho as its chairman. But Mr. Kang hasn’t revealed whether he would accept the offer, saying he would notify next week.

- Despite President Roh’s urge not to break up the Uri Party, disgruntled party members did not back down from their stance to form a new party.

- Real estate public fund worth W50 bn will be launched later this year, which will be managed by the government and Korea Housing Corporation (Jugong) with the aim of providing 50,000 public houses per year. The Finance Ministry and Construction Ministry will announce government measures including the scheme early next month.

- President Roh warned yesterday “if (housing prices) go up, stronger measures will be introduced.” “People are worried about real estate bubble burst, but there will be no hard landing in the property market,” he said.

- A strong local currency and serious labor disputes last year resulted in 0.5 per cent drop in sales, 10.8 per cent loss in operating profits, and 35 per cent slid in net profits, from a year before, at the country’s largest automaker Hyundai Motor.

- Samsung Electronics Vice President Lee Ki-tae hasn’t shown up to office since January 22, thus failing to attend important company meetings, which stokes speculation that he is rejecting to come to office in protest against the recent personnel reshuffle. The company rejects the claim, saying he is on sick leave.

- The government and the representatives from three major civil servant labor unions are said to have held their first meeting to discuss revamping the controversial civil servant pension fund.

- Japanese JiJi Press quoted a South Korean expert on the North as saying Kim Jong-il is not in Pyongyang and his close aides are having a fierce power struggle. One intelligence suggests a possibility of Kim Jong Il suffering from health problems or the military putting him under house arrest, the press said. It added the Seoul government doubts the authenticity of the intelligence.

- In the FKI meeting held yesterday, Lee Kun-hee, who has been serving as Samsung Group Chairman for the last two decades, told reporters “Though it is good that (Samsung) grew big, the next 20 years are more worrisome.” Asked when he will transfer his management control to his son, he said “(he should be) qualified for the role,” but didn’t deny his willingness to do so by saying “at least the foundation should be provided first.” On the question for the reason to make Lee Jae-yong take charge of CCO, he explained “it is meant to train him and let him have better understanding of customers, researchers, and company workers.”