Archive for October, 2007

North Korea Nuclear Deal Is Reached

Wednesday, October 3rd, 2007

Associated Press (Via the New York Times)
10/3/2007

North Korea will provide a complete list of its nuclear programs and disable its facilities at its main reactor complex by Dec. 31, actions that will be overseen by a U.S.-led team, the six nations involved in disarmament talks said Wednesday.

Chinese Vice Foreign Minister Wu Dawei said that as part of the agreement, Washington will lead an expert group to Pyongyang ”within the next two weeks to prepare for disablement” and will fund those initial activities.

”The disablement of the five megawatt experimental reactor at Yongbyon, the reprocessing plant at Yongbyon and the nuclear fuel rod fabrication facility at Yongbyon will be completed by 31 December 2007,” said Wu, who read the statement from the six nations to reporters, but did not take any questions.

The Bush administration welcomed the agreement, calling it significant progress.

”These second-phase actions effectively end the DPRK’s production of plutonium — a major step towards the goal of achieving the verifiable denuclearization of the Korean Peninsula,” said Gordon Johndroe, spokesman for the White House’s National Security Council.

The complex at Yongbyon has been at the center of North Korea’s nuclear weapons programs for decades and is believed to have produced the nuclear device Pyongyang detonated a year ago to prove its long-suspected nuclear capability.

Since then, Pyongyang rejoined the six-nation disarmament negotiations that involve the United States, China, Japan, Russia and South Korea as well as North Korea. Under a broad agreement reached in February, North Korea pledged to disable its nuclear programs in return for 1 million tons of heavy fuel oil or other assistance.

Wednesday’s statement outlines the next steps in the February deal. Although negotiators tentatively agreed on the statement Sunday after four days of talks, it was forwarded to their capitals for approval, leading to a delay in its public release.

The statement also said the U.S. and North Korea will ”increase bilateral exchanges and enhance mutual trust” but did not set a specific timetable for when Washington will remove Pyongyang from a list of countries that sponsor terrorism — a key North Korean demand. Arrangements will be made in future meetings between the two on normalizing their relations, the statement said.

In addition, the statement reiterated the five other countries’ commitment to deliver the fuel oil and other energy and economic assistance as spelled out in the February deal.

Shortly after Wednesday’s deal was announced, however, Japan said it would not provide aid to North Korea or lift its economic sanctions against the country because of a dispute over North Korea’s past abductions of Japanese citizens.

”There will be no immediate action from Japan. We will wait to see what North Korea does next,” Foreign Minister Masahiko Komura said. ”Japan’s policy remains unchanged. We will consider aid once we see progress on the abductions issue.”

Tokyo wants Pyongyang to account for its abduction of Japanese nationals in the 1970s and 1980s — a main sticking point for the two countries, which have no diplomatic ties.

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A postcard from Pyongyang

Tuesday, October 2nd, 2007

Joong Ang Daily
Brent Choi
10/2/2007

At 10 a.m. on June 28, I boarded a Koryo Air flight at Seoul’s Gimpo Airport, bound for Pyongyang. It took only one hour for the flight, organized by the non-governmental organization Movement for One Corea, to arrive at Pyongyang’s Sunan Airport, a two-story building bearing a large photo of the late North Korean leader Kim Il Sung ― not exactly an impressive sight for an airport.

There were 14 aircrafts at Sunan, including one helicopter. Seven were jets and six were old-style propeller planes. Most seemed in disrepair and sat beneath large covers. There wasn’t a single foreign plane there, a reminder of how isolated North Korea has become.

Four tourist buses came to fetch us. Each one carried about 30 visitors. About half were members of the Movement for One Corea. The rest were paying customers like me who had forked over around 2.5 million won ($2,750) for the tour of the North.

Several North Korean guides, who seemed rather shy, met us. They warned us not to take photos while the bus was moving and not to approach local people.

That afternoon our group toured Pyongyang. We first went to Mansudae to see a giant statue of Kim Il Sung. The guides lined up visitors in four groups and bowed low before the statue, in the manner of a Japanese person stooping before their emperor. Less than a tenth of our party followed the guides’ example.

Most were more impressed by the sheer size of the statue and wanted to take a picture. My roommate, a man named “Jo,” the head of a sewing factory, started taking pictures like crazy, using four different cameras.

I was a North Korea specialist for one of the major dailies in South Korea for almost a decade. In the eyes of the journalist that I am, North Korea seemed to have long ago lost sight of the balance between the spiritual and physical worlds.

Wherever we went there were slogans saying “Revolution” and anti-Japan exhortations, along with praise for Kim Il Sung and Kim Jong-il by female guides who spoke as if they were still living the 1930s.

The North’s excessive deification of the two Kims seemed ironic, given that its ideology is based on Marxist-Leninism.

I stayed at the Yanggakdo Hotel near the Taedong River. It was in a relatively good state with abundant food and clean rooms. But it was reserved for foreign visitors. The rest of Pyongyang still seemed to be struggling with the “Arduous March” that began in the 1990s. The grey, sordid building next to ours seemed like it hadn’t been repainted or repaired in any way for at least 10 years. The roads were also bumpy with cracks.

Passersby, men in gray suits and women in traditional hanbok, all looked tired and depressed and looked at the ground. Only the little children shot occasional glances toward our modern foreign bus, a rare sight in Pyongyang.

Our dialogue with the guides proved to be one of the most interesting aspects of the five-day trip.

At first the visitors and guides gave basic introductions and began talking about non-contentious issues like the weather. After “testing the waters,” the North Korean guides then began to ask about South Korea’s political situation including the upcoming presidential election, while the South Koreans barraged the guides with questions about nuclear programs. Not everyone was engrossed in politics. Some guys asked about local women.

The guides I met this time differed from those I encountered in the past. When I visited Mount Kumgang in 1998, all the guides were over 50 and would start arguments with visitors over things like unification and the presence of U.S. forces.

The guides in Pyongyang were much younger, mostly in their 30s. It seemed like a rapid generational change is under way in the North, with the older generations who survived the struggle against Japan or the Korean War, and even those who grew up under Kim Il Sung in the 1970s and 1980s being supplanted by those in their 30s and 40s, the so-called “Arduous March” generation who were teenagers during the famine years of the 1990s.

Our young guides were from this group and displayed a strong loyalty toward Kim Jong-il. They belonged to the elite class of the country, having graduated from Kim Il Sung University.

These guides didn’t bother to hide the tough conditions faced by North Koreans. When I asked about the food situation, they replied that everything was “tense” and rations were suspended from time to time. When that happened they came to Pyongyang Market a couple of times a week to purchase rice. If that was the life of young elites from the ruling Workers’ Party, I was afraid to ask about the common people.

However, from the bus window I could see people flocking to fish in rivers, lakes and just about any little puddle they could find that might contain some food.

The energy supply wasn’t good either. We went to Mount Myohyang on the third day. During a two-hour ride from Pyongyang I saw only nine cars; two Mercedes that belonged to high officials, four of our tour buses, two trucks and an old bus.

Pyongyang is divided into 10 administrative districts. At present they receive electricity in turns. Even the Juche Tower on the Taedong River turns off its lights at 11 a.m. Outside Pyongyang the hardships must be far more severe.

One of the guides insisted that the “war-mongering” United States had provoked the North into developing a nuclear program. He added that the United States can never be trusted. It sounded like the North would never give up on its nuclear program.

It seemed like even these new, young guides didn’t really understand the contradictions and problems within the regime. I told the young quides that to end its isolation and improve its economy, the country must improve relations with the United States by giving up its nuclear program and adopting some of free market principles.

The young people in the North didn’t seem to understand this. For example, I asked one guide about prices ― a basic of the market economy.

He said prices are determined by “the state authority.” He and his colleagues knew nothing about concepts like marginal cost or profits. I realized it was useless to mention interest rates, inflation or foreign exchange.

The guides were also nostalgic for the past. “In the ’80s we were able to buy cheap rice, fish and clothing,” one pretty guide told me, adding that the North’s goal is to return to this “golden era of socialism.”

The guides knew next to nothing about life overseas. Only two out of 10 guides had visited Seoul. Nobody else had been outside North Korea and nobody spoke English or Chinese.

On the other hand, they were both “well-informed” and “ignorant” about the situation in Seoul. They seemed to know all the little details of the nomination race between Grand National Party candidates Lee Myung-bak and Park Geun-hye, yet they lacked the political common sense to interpret them. To them the Grand National Party was a synonym for “the bad party,” just as Washington was a synonym for evil.

A tailor’s shop on the third floor of the Yanggakdo Hotel was the most popular place for tourists. Complete suits were priced at $130, half the cost of a similar garment back in Seoul. I bought one and it was no different from those made by skilled tailors in the South.

The problem was that the tailor had limited raw materials. When the tourists heard about the shop 100 of them rushed to place an order, but it could only satisfy the first 20 people.

I couldn’t understand this. The tailor could have earned much-needed foreign currency. But she lacked the fabric and staff and she needed permission from above to get more of either. “North Korea has truly screwed up its distribution of resources,” one professor on the trip said.

Another example of the “screwed-up” economy was our hotel. The Yanggakdo was built in 1995 and is supposed to be the best in Pyongyang. It has 47 stories and 1,001 suites, yet only 300 rooms were occupied during our stay ― a 70 percent vacancy rate.

“If this was Seoul, you’d probably be fired for leaving the place this empty,” I told the hotel manager. He wasn’t the least bit impressed. “My duty here is to make sure everyone is comfortable. It’s the state’s responsibility to bring in the guests,” he replied.

I came to realize that the inefficient management of the North Korean regime stems from this “instruction policy” in which everything is determined by one person ― Kim Jong-il, the Chairman of the National Defense Commission.

North Korean society revolves around instructions given by Chairman Kim ― literally.

On the fourth day we went to Okryugwan, a famous naengmyeon cold noodles restaurant, where the food lived up to its reputation. I complimented the guide and she said the tasty noodles were thanks to “The Dear Leader.”

According to the guide, Kim instructed the cook how to make the soup and where the vinegar should be added, in the soup or in the noodles. I thought she was kidding but her expression told me otherwise.

Then I learned that Kim Il Sung University teaches that the Goryeo Kingdom (918 to 1392) was the first kingdom to unite the Korean Peninsula, instead of the Silla Kingdom (57 BC to AD 935) as believed by the South. Until the ’60s, the North learned the same thing as the South but then instructions to change came from above.

Having the same leader intervene in every little decision from food to history is bound to extinguish the creativity and richness of people and culture.

North Korean propaganda is also a source of inefficiency. Around 75 percent of television news was filled with the late leader Kim Il Sung’s past activities or praise for current leader Kim Jong-il. The media in South Korea is an agent for change, because it shows new developments around the world. In the North it blocks society from growing up.

North Korea’s Juche ideology is about self-reliance, but the people of this country long ago lost the ability to stand on their own feet. They blindly hang on to every word and action of their single leader.

Back on the plane, two thoughts crossed my mind.

First, how long will the North be able to withstand this inefficient regime? Second, if the North is able to maintain its backward-looking society through isolation and propaganda, perhaps it will last longer than anyone imagines. Only the future will tell.

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S. Korean first lady meets N. Korean female leaders, not her counterpart

Tuesday, October 2nd, 2007

Yonhap
10/2/2007

South Korean First Lady Kwon Yang-suk might have found herself in a rather awkward position on the first day of the inter-Korean summit due to the absence of her official counterpart.

The North’s reclusive leader, Kim Jong-il, showed up at Pyongyang Square by himself to greet President Roh Moo-hyun and Kwon, disappointing South Korean and Western media, which expected to get a glimpse of Kim’s current spouse and successor of the world’s only communist dynasty.

There is no clear information available on Kim’s marital history, but he is said to have lived with a total of four women: Kim Young-suk, Song Hye-rim, Ko Young-hee, and Kim Ok.

Song is the mother of Kim’s oldest son, Jong-nam, while Ko is the mother of Jong-chul and Jong-un. One of Kim’s three children is widely expected to replace him as the ruler of the tightly-controlled regime.

Kim has never been accompanied by his wife at a diplomatic occasion, including the first-ever inter-Korean summit in 2000.

Instead of meeting with the North Korean first lady, the visiting South Korean first lady spent Tuesday afternoon meeting with several leaders in North Korean women’s circles.

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Summit Spurs Stock Re-Rating

Tuesday, October 2nd, 2007

Korea Times
Yoon Ja-young
10/2/2007

The second inter-Korea summit is expected to lay the ground not only for the establishment of a permanent peace on the peninsula but for further re-rating of the Seoul stock market, analysts said.

They said that Seoul stocks, burdened so long with the so-called “Korea discount” due to geopolitical concerns, will get a fresh boost as President Roh Moo-hyun entered North Korea for a summit with the North’s leader Kim Jong-il.

The main index KOSPI closed above 2,000 points again Tuesday as it closed at 2,014.09 points, up 51.42 points, or 2.62 percent, on the balmy news from north on top of the bullish New York bourse.

Most analysts agree that the summit will have a positive effect on the bourse in the long term. They advise investors to pay attention to stocks that have to do with social overhead capital (SOC) projects in North Korea.

Samsung Securities said the summit will be a great boon for the bourse in the long run. “The political events between the two countries haven’t affected stock prices much. Opinions diverge regarding its effect in the short term, but it would greatly contribute to the revaluation of local stock market in the end,” said Ahn Tae-kang, an analyst at Samsung Securities.

The world was surprised when the two countries announced the summit plan in 2000 April, and the whole nation watched the historic scene on TV when former President Kim Dae-jung was greeted by North Korean leader Kim Jong-il in Pyongyang two months later.

The stock market soared after each of these events, yet change was not always predictable. When North Korea conducted nuclear tests in 2006, on the contrary, stocks continued to rise as foreign investors sought buying shares on cheap prices.

It is different this time, according to analysts. “It would be a remarkable bullish factor once the two come out with a concrete plan on economic cooperation and SOC,” said Lee Seon-yeob, an analyst at Goodmorning Shinhan Securities. It would be only symbolic if without concrete agreements, he feared, but it would still be meaningful, according to Lee.

“The two can talk about setting up special economic zones, which can give rising momentum to North Korea related stocks and improve overall investor sentiment,” Kiwoom Securities said in a report.

Samsung Securities’ Ahn cited decreasing geopolitical risk and consequent reevaluation of stocks, the economic cooperation between the two and decreasing cost of unification after North Korea’s adoption of a market system and opening of the market as meanings of the summit. “The growing possibility of the sovereign credit ratings raise and Seoul index’s incorporation into developed world indices and the risk premium decrease are some of the positive effects,” he said.

He advised investors to concentrate on large cap blue chips that will benefit from infra projects in North Korea. Hyundai Engineering & Construction, POSCO, Hyundai Merchant Marine, Hyundai Elevator, KEPCO, and Hyosung were among his top picks.

Goodmorning Shinhan’s Lee said cited SOC related businesses, including construction and power transmission as the ones to benefit from the summit. “In the first summit, all stocks related with North Korea skyrocketed, but not this time. Investors are taking out the ones that will have a visible benefit. Investors seem to know how to make a good investment,” Lee said.

North Korea-related shares rise on summit
Joong Ang Daily

Kim Bo-yung
10/2/2007

With just a day left before the second epoch-making inter-Korean summit, North Korea-related shares surged on the Korean stock market yesterday.

The power facility industry enjoyed a moderate increase. Geumhwa PCS Co. advanced 5.5 percent, and Doosan Heavy Industries & Construction Co. climbed 2.37 percent.

The electric wire sector also posted a bull run as LG Cable and Taihan Electric Wire Co. surged 5.3 percent and 2.8 percent.

Nam Hae Chemical Corporation, a local agrichemical product manufacture, increased 5.6 percent.

However, the companies that have penetrated into the Kaeseong Industrial Complex suffered a loss.

Romanson Co. tumbled 3.3 percent and JY Solutec Co. slid 0.8 percent.

The share prices of Ewha Technologies Information, Cheryong Industrial Co. and KwangMyung Electronic, potential beneficiaries of electricity transmission from South to North Korea, dropped by 6 to 13 percent.

The second inter-Korean summit is expected to improve investment sentiment, generating strong gains across the board.

However, some market watchers warn investors not to make impulsive investments in North Korea-related shares.

“Although investment sentiment surrounding the stock market is [expected] to improve once the inter-Korean summit kicks off, it will only have a short-term effect,” said Oh Hyun-seok, the investment information manager at Samsung Securities.

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NK’s Country Domain ‘.KP’ Gets Nod

Tuesday, October 2nd, 2007

Korea Times
Jane Han
10/2/2007

Its just a matter of time before North Korea meets the world through the World Wide Web, as its domain “.kp” has recently been delegated for use.

The domain .kp _ short for Korea, Democratic People’s Republic _ allocated to North Korea, but currently not in use, has been officially designated by the Internet Corporation for Assigned Names and Numbers (ICANN) to be managed by the Pyongyang-based Korea Computer Center (KCC).

The international organization’s board voted unanimously in mid-September to accept KCC’s request to activate the domain.

Although an initial request was made in 2004, ICAAN declined permission due to the country’s lack of technology, management and governmental support.

The domain has been officially listed with the Internet Assigned Numbers Authority (IANA), allowing Web sites to be managed like other country domains, such as .jp (Japan) and .kr (Korea, Republic of).

Experts predict that the opening of the web domain may serve as a gateway to link the reclusive nation to the global community.

However, North Korean officials have been quoted as saying, “The domain will be strictly managed under the guidance of the central government.”

The North Korean government operates a handful of official and unofficial Web sites on computer servers based in other nations. Most of them are used to promote the country to foreigners, but access from South Korea is blocked by the South’s authorities due to its decades-old laws on national security.

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NK Projects: Chance or Risk for Businesses?

Tuesday, October 2nd, 2007

Korea Times
Jane Han
10/2/2007

Economic cooperation topping the agenda for the inter-Korean summit, plus the van of corporate decision makers traveling to the North together, begs the question: Will the trip bear fruit for two-way business?

Chung Mong-koo of Hyundai-Kia Automotive Group, Chey Tae-won of SK Group, Koo Bon-moo of LG Group and Hyun Jeong-eun of Hyundai Group, who are among the 18 CEOs accompanying President Roh Moo-hyun as part of a special entourage, showed signs of hope as they departed for Pyongyang on their three-day trip that started Tuesday.

“I hope the talks will go well and further the ongoing business between the two Koreas, while opening doors to new areas as well,” said Hyundai Chairwoman Hyun.

Unification Minister Lee Jae-joung was also optimistic as he detailed some of the items, including North Korea’s expansion of social overhead capital (SOC) and construction of railroads, which may be discussed among leaders of both sides.

“As there has been much progress in the peninsula over the past seven years, we’re hoping that this experience will set a milestone in history,” he said in a television interview.

These hopes may be translated into reality through at least two scheduled business leader meetings during the summit period.

“The definition of economic cooperation between the two Koreas, so far, has implied one-way support from Seoul,” said Koh Il-dong, a research fellow of the Korea Development Institute (KDI). “But now, it’s time to break free of that old understanding and move toward real cooperation.”

And “real cooperation” is what the North bound corporate executives are looking to, as they hint some of the possibilities they have in mind.

Among the top three business topics expected for discussion _ natural resource developments, roadway and railway distribution system expansions and dockyard construction _ Hyundai-Kia Automotive Group is said to be interested in building railroad cars through its shipping affiliate Glovis, and also measure the feasibility of SOC businesses, while POSCO showed interest in forestation.

Although company officials said forestation is just a possibility, as the steel maker has shown its interest in securing carbon credit overseas, industry insiders say the opportunity will be advantageous for POSCO if cooperation comes through.

And as speculations rose that SK Group may be considering communication and energy projects in the North, company officials said plans are open for review if the right offer is made.

LG and Samsung, which are said to be mulling over their specialty areas of electronics, seem to be in the same scouting stages as others.

“Each company needs to be given the time and circumstances to carry out through market research,” said Dong Yong-sueng, a research fellow of the Samsung Economic Research Institute (SERI), implying that those are some of the accommodations that must be worked out if business is to happen.

Contrary to the high hopes, economic experts pointed out that some corporations would be wary of cooperating with North Korea, as it may ruin their reputation in the global market.

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IFES MONTHLY RECAP: SEPTEMBER 2007

Tuesday, October 2nd, 2007

Institute for Far Eastern Studies
NK Brief No. 07-10-2-1

DPRK-U.S. RELATIONS
North Korean and U.S. officials kicked off the month of September with meetings held in Geneva on the 1st~2nd. The bilateral talks focused on how to implement the February 13 agreement. After two days of talks, U.S. Assistant Secretary of State Christopher Hill stated he is “convinced” the North will disable nuclear programs by year’s end, a timeline offered by the DPRK negotiators. North Korean press reported that the DPRK would be removed from the U.S. terrorism roster and sanctions imposed under the Trading with the Enemy Act would be lifted in return.

On September 7, Hill announced that North Korea had invited nuclear experts from the United States, Russia, and China to the DPRK in order to survey nuclear facilities and recommend dismantlement plans. The experts examined North Korean nuclear sites from September 11 to September 16.

On the same day, U.S. President Bush stated Washington would consider a peace treaty with North Korea in return for the North’s abandonment of nuclear arms.

On September 17 it was reported that North Korea had admitted that it had earlier procured materials needed to build uranium enrichment centrifuges. The admission regarded the import of 150 tons of hard aluminum pipes, enough for 2,600 centrifugal separators.

On September 20, the DPRK was removed from Washington’s list of countries producing illegal drugs. The North was added to the list in 2003.

On September 28, U.S. President Bush authorized 25 million USD worth of energy aid for North Korea. These funds could be used to provide the DPRK 50,000 metric tons of heavy fuel oil, equal to the amounts provided by China and South Korea as part of the February 13 agreement.

DPRK-JAPAN RELATIONS
Two days of talks between North Korean and Japanese diplomats began on September 5 in Mongolia, with both sides expressing confidence that there would be progress. Wartime compensation issues were discussed, although Japan continued to link normalization of relations with kidnapping issues.

Following the talks, North Korea stated that kidnapping issues were resolved with Japan, while Japan stated that both sides reiterated existing positions. On the same day, Japan rejected a DPRK request to allow North Korean ships to dock in Japan in order to pick up aid for flood victims.

On September 30, Chief Cabinet Secretary Nobutaka Machimura said Japanese economic sanctions on North Korea would be extended for another six months due to “basically no progress” on abduction issues.

DPRK-SYRIA ARMS COOPERATION
Reports began coming out of Israel in early September that reconnaissance flights over Syria had taken pictures of North Korean nuclear supplies and materials. Following Israeli air strikes, it was reported that Special Forces had entered Syria and confiscated material that appeared to be of DPRK origin. Conflicting reports stated that the facilities struck were missile storage facilities, rather than of a nuclear nature. North Korea has denied any nuclear cooperation with Syria.

DPRK-UAE RELATIONS
North Korea established ambassador-level diplomatic ties with the United Arab Emirates on September 18. A joint statement said the two countries aim to “enhance understanding and boost the links of friendship and cooperation between their two peoples.” Ties with such an oil-rich nation on friendly terms with Washington could be significant as the North moves to dismantle nuclear facilities.

ROK-DPRK ECONOMIC COOPERATION
It was reported on September 4 that stock prices of South Korean companies engaging in inter-Korean economic cooperation have shot up on news that the DPRK will dismantle nuclear programs. This includes not only those companies operating in the Kaesong Industrial Complex, but also firms involved in providing electricity and other projects planned in exchange for the North’s denuclearization.

On September 20 it was announced that the ROK government plans to request a 50 percent increase for inter-Korean cooperative projects in next year’s budget. The Ministry of Planning and Budget will request 822 million USD for cross-border projects, as well as 580 million USD for humanitarian assistance.

On September 27, it was reported that the ROK government was reviewing a proposal to jointly develop Nampo, Haeju, Najin, Sunbong, Wonsan, and Shinuiju. The North has requested development of heavy industries, while South Korea seeks cooperation on light industrial projects.

SIX-PARTY TALKS
The latest round of six-party talks opened in Beijing on September 27, with both the U.S. and DPRK negotiators promising progress. On September 30, talks were ended to allow delegates to return to their home countries to work on a ‘nuts and bolts’ joint statement. U.S. delegate Hill stated the delegates were close to agreeing on a definition of facilities, and that the proposed joint statement was very detailed. Before returning to Pyongyang, Kim Kye-gwan was quoted as saying that the North can report nuclear programs, but will not declare nuclear weapons by the end of the year. An ROK official stated that the North’s position was acceptable to Seoul. Negotiators are also thought to have agreed to begin removal of ten core devices from three nuclear facilities beginning in November. The joint statement is scheduled for release on October 2.

DPRK FLOODING
Acting UN Coordinator to the DPRK Jean-Pierre de Margerie stated on September 3, “The level of damage to infrastructure, to communications, to crops, to farmland and to households, is considerable,” but also pointed out, “The [DPRK] government has improved its level of cooperation by giving us unprecedented access to the field to conduct our assessments of the damage.”

ESPIONAGE IN THE DPRK
Li Su-Gil, spokesman for the DPRK National Security Service, reported on September 5 that several foreigners had been arrested along with a number of DPRK citizens accused of spying for a foreign country; Specifically, for having “collected official documents and information on the DPRK’s important military facilities, and spread the idea of so-called democracy and freedom to the people.” The identities and nationalities of those arrested were not revealed.

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Internet lines of two Koreas to be linked during summit

Monday, October 1st, 2007

Yohnap
10/1/2007

South and North Korea will be linked via the Internet during the summit of their leaders from Tuesday to Thursday, South Korea’s top communications service provider said on Monday.

KT Corp. said that it will reopen for three days the optical communication network which was established in July 2005 for the video reunions of families separated by the inter-Korean border, enabling the South Korean entourage and press corps to use the Internet.

North Korea originally planned to allow Internet access via China, but notified the South Korean government over the weekend of its decision to use the inter-Korean network.

Twelve personal computers have been connected to the Internet at the press center established at the Goryo Hotel in Pyongyang.

KT also plans to support a broadcasting relay for South Korean broadcasters using its Mugunghwa No. 3 satellite.

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Mt. Geumgang Project to Take Another Leap

Monday, October 1st, 2007

Korea Times
Ryu Jin
10/1/2007

Mt. Geumgang tourism project, launched in 1998, has grown up as one of the three major inter-Korean economic projects in accordance with the reconciliation of the two Koreas. And it now braces itself for another leap with the 2007 South-North Summit.

But the project went through a rough and difficult road in the past nine years, largely due to exterior factors such as the political instability such as the nuclear standoff between North Korea and the United States since 2002.

Hyundai Asan, the operator of the cross-border tourism project, expects the summit to provide a fresh momentum for their business. Hyundai Group Chairwoman Hyun Jeong-eun will accompany President Roh Moo-hyun to Pyongyang.

Riding on Reconciliation

In June, Mount Geumgang opened the elegance of its inner part to outsiders for the first time since the pre-modern Korea was divided into two different systems — the capitalist South and the communist North — more than half a century ago.

Since it became accessible in 1998, Mt. Geumgang has emerged not only as a popular tourist destination for South Koreans but also one of the few places in North Korea where foreigners could travel relatively easily.

But the inner part of the mountain, better known as “Naegeumgang” in Korean, has been closed by North Korea despite the repeated requests by Hyundai Asan in the past several years.

Geumgang-san, a 12,000-peak mountain that has long held aesthetic and spiritual allures for Koreans, could be divided into three parts: “Naegeumgang” (inner, western part), “Oegeumgang” (outer, eastern part) and “Haegeumgang” (seashore part).

In the past, people took trains to Cheorwon to explore the auspicious mountain _ they climbed up through Naegeumgang to get to the highest Biro-bong peak (1,638 meters), looked around Oegeumgang and then came down to Haegeumgang.

Former Unification Minister Lee Jong-seok, who climbed up the new course, said it was quite meaningful that Pyongyang has finally decided to open the secretive area, given the strategic importance of the military bases facing the South’s Cheorwon.

After a four-month operation of the Naegeumgang tour, more than 50,000 people are expected to visit Mt. Geumgang in October to break the record for the number of visitors in a single month, according to Hyundai Asan.

For Another Leap

Since the first tour to Oegeumgang in late 1998, more than 1.5 million visitors have made the trip to the mountain resort as of May. Most visitors were South Koreans, while nearly 8,000 visitors came from 48 other countries.

But Hyundai Asan’s tourism business has often been affected by security situations on the peninsula. It met difficulties when North Korea conducted a nuclear test in October last year.

Amid the heightened tension, the number of tourists to the mountain resort plummeted to some 240,000 last year, putting a damper on Hyundai Asan’s target of securing more than 400,000 visitors.

Hyundai Asan CEO Yoon Man-joon said earlier this year that the company set the target at 400,000 again for this year. By the end of May, about 100,000 people have made the trip to Mt. Geumgang this year, according to Hyundai Asan spokespersons.

Yoon said that the company would also try to revamp tour programs to draw more younger visitors as part of its new marketing strategy for the existing tour to the outer side of the mountain, Oegeumgang.

Company officials added, once the 500,000-pyong (408-acre) 18-hole golf course is completed in October, Mt. Geumgang would be reborn as a new resort complex with “things to see, eat, buy and enjoy.”

Hyundai Asan has a new plan for the next year. “Our tourism business would be put on the right track next year, if the visitors could drive their own cars all the way to the resort area across the border and clime up to the highest Biro-bong,” a spokesman said.

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