12-15-사무실

S. Korea's inventory-shipment ratio hits 10-year high in Oct. SEOUL, Dec. 15 (Yonhap) -- South Korea's manufacturing inventory-shipment ratio reached a 10-year high in October in the face of weak domestic and overseas demand, a government report said Monday. The ratio stood at 1.187 in October, the highest since 1.214 tallied for February, 1999, according to the National Statistical office (NSO). It said the increase marks an annual increase of 17.6 percent. A higher inventory-shipment ratio indicates a build up in products held in storage and a drop in demand, while lower numbers translates into a rise in demand for manufactured goods. South Korean firms have been struggling to sell products as consumers around the world have tightened their purse springs in the wake of a liquidity crunch and overall uncertainties about the future. The NSO said the ratio of goods in stock compared to those shipped out for sales has been rising steadily from June this year as the slowdown in the global economy sapped consumption. The ratio had stood at 1.078 percent in June but rose to 1.151 percent in September, according to the office. yonngong@yna.co.kr


BOK to supply 6.5 tln won to financial system this week SEOUL, Dec. 15 (Yonhap) -- South Korea's central bank said Monday it will pump a combined 6.5 trillion won (US$4.87 billion) in liquidity into the financial system this week by buying longer-dated repurchase agreement deals. According to the Bank of Korea (BOK), by purchasing of the 91-day deals, it will supply 2.5 trillion won to financial firms on Monday. The central bank said it will also hold auctions on Tuesday and Friday to supply 2 trillion won, respectively. A repurchase agreement is a deal whereby one party sells the other a security at a specified price with a commitment to buy the security back at a later date. It is the central bank's main method of releasing liquidity into the market in a credit crunch and siphoning off excess liquidity. sooyeon@yna.co.kr(END)



S. Korea to inject 230 bln won to build up IT security industry By Lee Joon-seungSEOUL, Dec. 15 (Yonhap) -- South Korea will invest 230 billion won (US$172 million) in the information technology (IT) security industry over the next five years as part of efforts to combat growing illegal activity on the internet, the government said Monday. The plan by the Ministry of Knowledge Economy outlined at the Securing Knowledge Korea 2013 meeting in Seoul calls for the creation of a 18.4 trillion market in the IT security sector by 2013 that can effectively deal with dangers associated with the movement of information on the net. Currently the size of the domestic market stands at around 3.1 trillion won, according to the ministry. "The negative side effects of the IT revolution are being felt around the world and development of a 'risk-free ubiquitous' environment is gaining momentum as a next generation growth industry," said ministry official. He said of the total, 150 billion won will go into research and development to Internet security-related technology, with funds also being allocated to the training of 3,000 experts and finding overseas markets for products developed. He claimed 30,000 new jobs could be created in this sector. The masterplan, meanwhile, envisions South Korea exporting US$3 billion worth of IT security products and services by the target year to become one of the top three in this field. It said the country's global market share could hit 5 percent from 1.74 percent at present.


Lee says still determined to donate personal wealth By Yoo Cheong-moSEOUL, Dec. 15 (Yonhap) -- President Lee Myung-bak said Monday that he still is committed to donating almost all of his personal wealth to society in a gesture to encourage the underprivileged people to try to overcome the deepening economic difficulties. In his biweekly radio address, Lee also said he will continue to donate all of his presidential salary to low-income households for the rest of his five-year term which ends in early 2013. He donated all of his salary to low-income people while serving as mayor of Seoul in 2002-2006. Just before the 2007 presidential election when he was dogged by allegations of financial wrongdoing, Lee declared that if he wins the voting, he will donate all of his personal wealth, estimated at over 30 billion won (US$20.7 million), excluding a retirement house, to the public. Apparently mindful of growing public criticism over his failure to keep his campaign pledge to donate his personal wealth a year after it was made, Lee said Monday he is still mulling over what would be the best way to fulfill the pledge. "Personally, I have donated my paychecks earned as president and Seoul mayor (2002-2006) to the underprivileged people. I also have the same attitude towards my personal property," Lee said. "Despite the unprecedented economic crisis, donations to charities and distressed families have been on the rise in this nation. I feel really grateful to that," he said. Lee said he will be able to announce specific ways to donate his wealth "in the not too distant future."In the speech, Lee also stressed the importance of "love with a family," exhorting the public to reflect on the value of family in times of economic hardships. "Encouragement from within the family is most needed at this point. Family is the last stronghold we can turn to in the face of these economic difficulties," he said. "Husbands and fathers will surely recover from their loss of employment, if encouraged by their families."



Seoul shares open sharply higher on U.S. gains SEOUL, Dec. 15 (Yonhap) -- South Korean shares got off to a strong start Monday as institutional investors scooped up large-cap shares following U.S. gains, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 47.02 points, or 4.26 percent, to 1,150.84 in the first 15 minutes of trading. Wall Street rallied Friday as the Treasury Department reassured investors that it was prepared to rescue the nation's struggling auto industry a day after the Senate rejected a proposed US$14 billion aid package. The Dow Jones industrial average rose 0.75 percent and the tech-dominated Nasdaq composite index added 2.18 percent. The local currency was trading at 1,331.5 to the U.S. dollar as of 9:15 a.m., up 41 won from Friday's close.


Kia Motors further cuts work hours amid falling sales SEOUL, Dec. 15 (Yonhap) -- Kia Motors Corp., South Korea's second-largest automaker, is further cutting back work hours at its main domestic plant to cope with falling sales as a global recession has hit vehicle demand worldwide, a source said Monday. Workers at Kia, a unit of Hyundai Motor Co., are putting in six-hour days, down from previous 10-hour shifts, at their plant in the city of Gwangju, 329 kilometers southwest of Seoul. The plant produces the Carens crossover and Sportage sport-utility vehicles. Since early October, employees have stopped both weekend shifts and overtime hours, the source said. Local newspapers have reported that Kia set its 2009 sales target at 1.47 million vehicles, compared with an estimated sales goal of 1.61 million vehicles this year. Hyundai also cut back on work hours and closed some of its production lines during weekends earlier this month to control rising inventories. (END)



Russia, U.S. differ over energy aid for N. Korea SEOUL, Dec. 14 (Yonhap) -- The United States and Russia disagree over whether to continue energy aid for North Korea after the latest round of six-way disarmament talks collapsed, according to a news report on Sunday. In an Oct. 3 accord struck last year with the U.S., South Korea, China, Japan and Russia, North Korea is promised 1 million tons of fuel oil, or its equivalent in return for disabling its main nuclear facility. Close to 600,000 tons have been delivered so far. The latest round of six-party talks broke down in Beijing on Thursday after North Korea refused to promise in writing a key U.S. demand for taking samples from its Yongbyon nuclear plant for testing. In a non-binding statement that summarized the results of last week's six-party talks, China said, "The Parties agreed, as described in the October 3 Second Phase Agreement, to implement in parallel the disablement of the Yongbyon nuclear facilities and the provision of economic energy assistance equivalent to one million tons of heavy fuel oil."But the U.S.later said it would halt further fuel shipments unless the North gives in writing concrete verification assurances about its nuclear declaration made in June. "This is an action-for-action negotiation. I don't think you're going to see much action from other parties until North Korea acts." State Department spokesman Sean McCormack said in a press briefing. "Future fuel shipments aren't going to move forward absent a verification regime."He added that the other four negotiating parters, including Russia, also agreed to the suspension of the energy aid. Russia said it was "surprised" by the U.S. stance. "We hope to complete shortly all of our quota of 200,000 tons of fuel," Deputy Russian Foreign Minister Alexei Borodavkin was quoted as saying by Ria Novosti news agency on Sunday. "We hope that all the parties implicated in the six-party settlement will respect their engagements," he added. South Korea maintains a cautious approach. "We will review the issue prudently," a foreign ministry official said, asking not to be named. "It is a matter to be decided by each nation, which does not require a compromise among the five parties."North Korea threatened to slow the pace of disablement if the energy aid comes to a halt. "We do not care about whether it is suspended or supplied," Pyongyang's nuclear envoy Kim Kye-gwan told reporters at the Beijing airport on Saturday as he headed back to his country. "If it is not provided, we will probably adjust the speed of the disabling."




Seoul to spend 1.51 tln won on inter-Korean cooperation next year SEOUL, Dec. 14 (Yonhap) -- South Korea said Sunday it will use about 1.51 trillion won (US$1.10 billion) in 2009 to facilitate economic and humanitarian exchanges with North Korea, including 400,000 tons of rice aid to the impoverished state. The amount represents an 8.6 percent increase from the 1.39 trillion won earmarked for the inter-Korean cooperation fund this year, the Unification Ministry said. The National Assembly on Saturday passed a 284.5 trillion won budget bill for 2009. The parliament, however, cut the amount of state contribution to the fund to 350 billion won from 650 billion won originally sought by the government, the ministry said, adding the government will fill the slashed amount with part of the fund to be carried over from this year. Seoul used only about 15 percent, or 240 billion won, of the money allocated for inter-Korean cooperation fund this year because of cross-border political and other tensions. Previous South Korean administrations led by liberal leaders Kim Dae-jung and Roh Moo-hyun had sent aid to Pyongyang annually in the form of rice and fertilizer. Direct South Korean food to the North aid has been suspended since the conservative government of President Lee Myung-bak took office in February. According to the ministry, 640 billion won of the total will be spent on sending humanitarian aid to North Korea next year, which will include 400,000 tons of rice and 300,000 tons of fertilizer. About 360 billion won will be used to promote inter-Korean economic projects, with the remainder to be used for job-training and settlement for North Korean defectors. The amount is down 51 percent from this year. The sharp drop reflects the Lee government's policy not to expand inter-Korean economic cooperation until North Korea abandons its nuclear ambitions. The two Koreas remain technically at war as the 1950-53 Korean War ended in a truce, not a peace treaty.



President Lee calls for aggressive fiscal policy to revive economy SEOUL, Dec. 14 (Yonhap) -- President Lee Myung-bak ordered his Cabinet Sunday to waste no time in executing next year's budget if needed to help reinvigorate the slumping economy, his spokesman said. Lee presided over an emergency meeting of top government officials, including Prime Minister Han Seung-soo, on Sunday to discuss next year's budget spending plan. A day earlier, the National Assembly approved a 284.5 trillion won (US$207 billion) government budget proposal. "President Lee instructed related ministries to immediately carry out projects that can be started in December," presidential spokesman Lee Dong-kwan told reporters. The president called for speedy measures so that the people can feel their effects as early as possible, the spokesman said. Next year's budget marks a 10.6-percent increase from this year, with the main focus placed on creating jobs and providing assistance to the underprivileged people. The president was also quoted by the spokesman as saying that budget-spending procedures should be simplified so that planned public construction projects can be launched at an early date.



Seoul begins construction of war rehab center for Vietnam SEOUL, Dec. 15 (Yonhap) -- South Korea on Monday began constructing a rehabilitation center in Vietnam that will help hundreds and thousands of Vietnamese suffering from various ailments resulting from their exposure to herbicides, such as dioxin, during the Vietnam War, Seoul's veterans affair ministry said. The construction of the 2-billion-won (US$1.5 million) facility, jointly funded by South Korea's Ministry of Patriots and Veterans Affairs and the Korea Disabled Veterans Organization, is scheduled to be completed in October, the ministry said in a press release. The facility is being constructed on a 32,000 square-meter lot of land provided by Vietnam's Quang Nam Province, according to the ministry. "The center will include a residence area, hospital and other public facilities that will be used by people and their offspring suffering from exposure to defoliants used during the Vietnam War," it said. More than 80,000 tons of herbicide, code named Agent Orange, is believed to have been sprayed across southern Vietnam during the 1959-1975 war where the U.S.-led anti-communist forces had to contend with thick forest cover while fighting communist forces, known as Vietcong. Over 30,000 Vietnamese in Guang Nam Province alone still suffer from various maladies associated with exposure to powerful herbicide, the ministry said. Upon completion, the rehabilitation center will house up to 64 live-in patients while providing daily medical services to hundreds of others, it said. The center will also offer various vocational and academic classes to help the victims and their families make a better living.

이한구 위원장 “민주, 지연작전 아쉬워”
"자금낭비 줄이는데 역점"






국회 예산결산특위 이한구 위원장은 14일 국회를 통과한 새해 예산안과 관련, "민주당이 대안을 갖고 임해줬다면 더 좋은 모양새로 예산이 짜졌을 것"이라며 아쉬움을 표시했다.
이 위원장은 이날 연합뉴스와의 통화에서 "민주당이 지연작전을 펼침으로써 결과적으로 감액, 증액에서 심의가 덜 된 측면이 있다"며 "더 잘될 수 있었을 것"이라고 말했다.
하지만 그는 "계수조정소위 위원들이 많은 준비를 해와 심의 자체는 효과적이었다"고 평가했다.
이 위원장은 `자금 낭비는 없애고 사업을 할 수 있도록 한다'는 점을 예산안 심사의 기본 원칙으로 했고, ▲지방재정 확충 ▲금융산업 건전성 ▲남북협력기금 예산구조 변경 ▲일자리 창출 및 중소기업 지원 등을 위한 예산조정에 심혈을 기울였다고 강조했다.
다음은 이 위원장과의 문답 요지.
--이번 예산안 심사를 총평해달라.
▲민주당이 대안을 갖고 임해줬다면 더 좋은 모양새로 예산이 짜졌을 것이라는 아쉬움이 있다. 민주당은 예결위 전체회의 때만 해도 공감할 수 있고 좋은 안을 많이 내놓았었다. 민주당이 지연작전을 펼침으로써 결과적으로 감액, 증액에서 심의가 덜 된 측면이 있다. 더 잘될 수 있었다. 다만 계수조정소위 위원들이 많은 준비를 해와 심의 자체는 효과적이었다.
--예산 내용에 대해서는 어떻게 평가하나.
▲자금 낭비는 없애면서 사업을 할 수 있도록 예산을 짰다.
우선 국회 차원에서 지방재정과 관련한 문제를 많이 고쳤다. 세법 개정, 즉 감세로 인해 지방재정이 어려워졌는데 예산안 심사 과정에서 이를 보충했다. 전체적으로 7천600억원을 증액했다. 하천 개선사업도 지방살리기 차원에서 필요하다.
금융시장 안정에도 신경을 썼다. 금융산업의 건전성을 위해 1조5천억원을 증액, 금융기관들이 대외공신력을 높이도록 했다.
또한 이번 예산은 빚을 내서 마련됐는데 불용 가능성이 있고 빚내서 북한정권을 돕는 것은 문제라고 생각해 남북협력기금을 3천억원 삭감했다. 국회가 남북협력기금 관련 구조를 바꾼 셈이다.
아울러 하루빨리 산업을 살리라는 메시지를 담아 산업.중소기업 예산을 8천억원 이상 증액했고, 일자리 창출 프로그램 가동을 위한 예산을 대폭 늘렸다. 공공기관의 사업에 대해서는 `구조개혁을 하지 않으면 예산을 안준다'는 메시지를 담아 예산을 편성했다.
--홍준표 원내대표와 막판에 언쟁을 벌였다는 말도 있다.
▲민주당이 예산안 처리에 전적으로 협력한다는 약속을 하지 않은 상황에서 `근거없는 삭감' 주장을 받아들일 수 없다고 한 것이다.
--가장 긴박했던 12일 오후 7시간 가량 행방이 묘연했는데.
▲회의 결과만 기다렸다가는 표결도 못한다는 판단이 들었다. 예산을 확정짓기 위해 필요한 작업을 다른 곳에서 했다. 이때 하천 개선사업, 남북협력기금 등 쟁점이 되는 부분을 정부 관계자들과 함께 검토했으며 정부로부터 구조개혁을 한다는 약속을 받아냈다.
안용수 기자 aayyss@yna.co.kr (서울=연합뉴스)
Slew of IPOs revoked or delayed amid falling prices SEOUL, Dec. 15 (Yonhap) -- The number of South Korean firms that went public shrank by more than one third this year amid stumbling stock prices, the country's bourse operator said Monday. A total of 47 companies have offered their shares to public trading on the main Korea Composite Stock Price Index (KOSPI) and secondary KOSDAQ boards so far this year, down 37.3 percent from 75 firms last year, according to the Korea Exchange. Corporate funding from initial public offerings also nose-dived as companies revoked or delayed their planned listing. Local companies raised a total of 571.4 billion won (US$423 million) by offering their shares to the public in the January-October period, a 71-percent drop from 1.97 trillion won a year earlier, according to the Exchange. South Korean shares have fallen nearly 39 percent so far this year amid a global credit market freeze-up and a deepening economic slump. pbr@yna.co.kr(END)
(LEAD) BOK to supply 6.5 tln won to financial system this week SEOUL, Dec. 15 (Yonhap) -- South Korea's central bank said Monday it will pump a combined 6.5 trillion won (US$4.87 billion) in liquidity into the financial system this week by buying longer-dated repurchase agreement deals. According to the Bank of Korea (BOK), Monday's purchase of the 91-day deals will supply 2.5 trillion won to financial firms. In turn, the firms would put the money into a 10-trillion-won bond fund aimed at stabilizing the local debt market. The fund is to be launched on Wednesday. The central bank said it will also hold auctions to purchase 91-day repos on Tuesday and another auction to buy 28-day deals on Friday. The auctions are expected to generate 2 trillion won in additional liquidity each. A repurchase agreement is a deal whereby one party sells the other a security at a specified price with a commitment to buy the security back at a later date. It is the central bank's main method of releasing liquidity into the market in a credit crunch and siphoning off excess liquidity. "Along with local banks, brokerage houses that were recently made eligible for BOK's repo deals will be allowed to participate in the auctions," the central bank said. "A potential liquidity supply will help funds to flow more smoothly in the financial system," it added. On Thursday, the BOK decided to allow an additional 12 local securities firms to participate in its repurchase agreement operations to swiftly provide liquidity to the financial system. Despite steep rate cuts, market interest rates like yields on certificate of deposits have not fallen as much as expected, deepening a credit squeeze in the local debt market amid a lack of buyers for bank bonds. On Thursday, the BOK cut the key interest rate by a record one percentage point to an all-time low of 3 percent to prop up the slowing economy. It has trimmed the policy rate by a combined 2.25 percentage points since early October.
Pantech releases 3G handset in U.S. SEOUL, Dec. 15 (Yonhap) -- Pantech Co., a South Korean handset maker, said Monday it released a new mobile phone in the United States through wireless carrier AT&T Inc. The bar-type model, running on AT&T's third-generation wireless network, is equipped with a 1.3 mega-pixel camera, Bluetooth connectivity and various other multimedia functions, Pantech said in a statement. The device also provides real-time directional navigation services for drivers and pedestrians by connecting its dedicated assisted global positioning system network, Pantech said.
SKT-led consortium wins military network facility deal SEOUL, Dec. 15 (Yonhap) -- A consortium led by SK Telecom Co., South Korea's top mobile carrier, has won a deal to upgrade networks connecting 2,600 military bases in the country, according to the company Tuesday. The deal, estimated at around some 300 billion won (US$222 million), calls for the consortium of 11 companies to install some 3,200 kilometers worth of fiber-optic cables throughout military bases in the country, officials at SK Telecom said. The consortium will also be responsible for managing the networks as the military's private partner over the next 10 years. "Our feat is significant, considering that we've overcome our larger fixed-line operator KT Corp. in sealing the deal," an official at SK Telecom said, attributing SK Broadband Co.'s participation as a decisive factor in securing the deal. SK Telecom purchased a 39-percent stake in SK Broadband, formerly Hanarotelecom Inc., for 1.09 trillion won in Dec. 2007 from former controlling shareholders led by American International Group Inc. and Newbridge Capital LLC.

◇간통죄, 친권법 논란에도 중심또 박철과의 이혼 과정에서 간통혐의로 불구속 기소됐던 배우 옥소리가 1월 30일 재판부에 간통죄 위헌심판 제청을 신청하면서 간통죄에 대한 사회적 논의를 다시 불러일으켰다. 그로부터 열달 만인 10월30일 헌법재판소가 간통죄에 대해 네 번째로 합헌결정을 내리고 옥소리는 결국 징역 1년 6월을 구형받았지만, 이 과정에서 간통죄 존폐여부는 사회적 이슈가 됐다. 최진실과 김미화가 잇따라 법원에 자녀의 성씨 변경 신청을 한 것 역시 주목을 받았다. 최진실은 5월 두 자녀의 성을 자신의 성으로 바꾸는 데 성공했고, 이에 앞서 김미화는 3월 두 딸의 성을 현재 남편의 성으로 바꿨

Dong-A Pharmaceutical ships anti-impotence drug to Russia SEOUL, Dec. 15 (Yonhap) -- Dong-A Pharmaceutical Co., South Korea's largest drug maker, said Monday it has shipped its anti-impotence drug Zaydena to Russia for the first time. The shipment was the first part of a US$50 million contract signed with Russia's Valenta in October to sell the drug in the European country over the next five years, Dong-A said in a statement. The Russian market for anti-impotence drugs is expanding annually at a double-digit rate, the South Korean company said.


Seoul unveils further steps for balanced development SEOUL, Dec. 15 (Yonhap) -- South Korea said Monday that it will expand tax benefits and other incentives for companies planning to move into provincial areas as part of its efforts to foster balanced development. The Ministry of Strategy and Finance said that it will cut corporate taxes on companies moving to less-developed provincial areas for up to 10 years from the current 7 years, while promising to give financial support for relocation. The ministry added that it will also step up efforts to build "quality" high schools in provincial areas as part of efforts to induce more companies to relocate. Detailed education-related measures will be announced in the first half of next year, the ministry said. Those and other measures are among the second-phase policy package aimed at promoting balanced national development. The first one was unveiled in September under which the ministry promised to invest 50 trillion won (US$45.8 billion) over the next five years to finance state-led provincial development projects. The move comes as complaints grow that the development gap between urban and rural areas is widening. Some people argue that the Lee Myung-bak government is seeking to focus only on revamping the areas in and around Seoul where a fourth of the nation's population is concentrated and with the government and large companies stationing their headquarters there. "We believe that the key to development in the provincial area is to induce companies to move there so that they could create jobs and income," the ministry said in a statement. "We will do our utmost to that end by providing diverse economic and social incentives."


S. Korea's import price growth hits 7-month low in Nov. SEOUL, Dec. 15 (Yonhap) -- South Korea's import prices grew at the slowest pace in seven months in November as retreats in oil prices and slumping demand outweighed a weaker local currency, the central bank said Monday. Import prices in local currency terms climbed 32 percent on-year in November, compared with a 47.1 percent on-year gain for the previous month, according to the Bank of Korea (BOK). The November figure marked the slowest growth since a 31.3 percent gain in April, the central bank said. The country's import prices climbed 50.6 percent on-year in July, hitting a 10-year high. Import prices fell 6.6 percent on-month in November, marking the first decline in three months and falling by the largest margin since December 1998 when such prices dropped 7.1 percent, it added. "Despite a softer won, falling oil prices and weaker demand affected by a global recession drove down the growth of import prices," said Lee Byung-doo, an official at the BOK. Raw material prices rose 15.6 percent on-year in November, sharply slowing from a 47.3 percent gain the previous month, it added. Oil prices have been on a downward path after peaking at US$147 per barrel in July. South Korea, the world's fifth-largest crude buyer, relies entirely on imports for its oil needs. A weaker won against the dollar is putting upward pressure on inflation as it makes imports more expensive. South Korea's currency has declined more than 30 percent against the greenback so far this year. In November alone, the won lost 12.1 percent against the dollar. On Thursday, the BOK cut the key interest rate by a record one percentage point to an all-time low of 3 percent to prop up the slowing economy. It has trimmed the policy rate by a combined 2.25 percentage points since early October.


S. Korea to spend 114 tln won on river works By Lee Joon-seungSEOUL, Dec. 15 (Yonhap) -- South Korea will spend 14 trillion won (US$10.4 billion) on strengthening the capability of four main river systems across the country to cope with floods and drought, the government said Monday. The Ministry of Land, Transport and Maritime Affairs said initial work could begin in the second half of 2009, with the entire work on the Han, Nakdong, Geum and Yeongsan rivers to be completed by late 2011. "Work will be focused on strengthening embankments, restoring the eco-system and maintaining appropriate depth to facilitate water flow," Kwon Jin-bong, deputy minister for construction and water resources said. The project outlined at a meeting chaired by President Lee Myung-bak could reduce damages caused by floods and drought that on average costs the government 4.2 trillion won annually. "The basic plan is to prevent damage that has destroyed property and taken lives" he stressed. The government had spent about only 1.2 trillion won each year on rivers to prevent disasters. The official claimed that while a more detailed plan will be announced in April or May of next year, the project could help create 190,000 new jobs mainly in the construction sector and boost related economic output by 23 trillion won. The plan, in addition, calls for the construction of four submerged dams to save water in case of drought, the setting aside of reserve reservoirs along the rivers in case of floods and development of recreational facilities on the river banks. Woodland that is to be created on the embarkment could help reduce greenhouse gas emissions. The ministry said that while 8 trillion won of the total earmarked will be spent on developing rivers, the project is not related to the controversial Grand Canal program. It said that there are no plans to set up inland terminals, dams or dredge up the river bottom to allow for boat traffic. The canal plan that calls for linking major rivers via canals has effectively been scrapped in the face of public opposition to its feasibility and concerns about its environmental impact.


S. Korea's import price growth hits 7-month low in Nov. SEOUL, Dec. 15 (Yonhap) -- South Korea's import prices grew at the slowest pace in seven months in November as retreats in oil prices and slumping demand outweighed a weaker local currency, the central bank said Monday. Import prices in local currency terms climbed 32 percent on-year in November, compared with a 47.1 percent on-year gain for the previous month, according to the Bank of Korea (BOK). The November figure marked the slowest growth since a 31.3 percent gain in April, the central bank said. The country's import prices climbed 50.6 percent on-year in July, hitting a 10-year high. Import prices fell 6.6 percent on-month in November, marking the first decline in three months and falling by the largest margin since December 1998 when such prices dropped 7.1 percent, it added. "Despite a softer won, falling oil prices and weaker demand affected by a global recession drove down the growth of import prices," said Lee Byung-doo, an official at the BOK. Raw material prices rose 15.6 percent on-year in November, sharply slowing from a 47.3 percent gain the previous month, it added. Oil prices have been on a downward path after peaking at US$147 per barrel in July. South Korea, the world's fifth-largest crude buyer, relies entirely on imports for its oil needs. A weaker won against the dollar is putting upward pressure on inflation as it makes imports more expensive. South Korea's currency has declined more than 30 percent against the greenback so far this year. In November alone, the won lost 12.1 percent against the dollar. On Thursday, the BOK cut the key interest rate by a record one percentage point to an all-time low of 3 percent to prop up the slowing economy. It has trimmed the policy rate by a combined 2.25 percentage points since early October.


S. Korea to spend 114 tln won on river works By Lee Joon-seungSEOUL, Dec. 15 (Yonhap) -- South Korea will spend 14 trillion won (US$10.4 billion) on strengthening the capability of four main river systems across the country to cope with floods and drought, the government said Monday. The Ministry of Land, Transport and Maritime Affairs said initial work could begin in the second half of 2009, with the entire work on the Han, Nakdong, Geum and Yeongsan rivers to be completed by late 2011. "Work will be focused on strengthening embankments, restoring the eco-system and maintaining appropriate depth to facilitate water flow," Kwon Jin-bong, deputy minister for construction and water resources said. The project outlined at a meeting chaired by President Lee Myung-bak could reduce damages caused by floods and drought that on average costs the government 4.2 trillion won annually. "The basic plan is to prevent damage that has destroyed property and taken lives" he stressed. The government had spent about only 1.2 trillion won each year on rivers to prevent disasters. The official claimed that while a more detailed plan will be announced in April or May of next year, the project could help create 190,000 new jobs mainly in the construction sector and boost related economic output by 23 trillion won. The plan, in addition, calls for the construction of four submerged dams to save water in case of drought, the setting aside of reserve reservoirs along the rivers in case of floods and development of recreational facilities on the river banks. Woodland that is to be created on the embarkment could help reduce greenhouse gas emissions. The ministry said that while 8 trillion won of the total earmarked will be spent on developing rivers, the project is not related to the controversial Grand Canal program. It said that there are no plans to set up inland terminals, dams or dredge up the river bottom to allow for boat traffic. The canal plan that calls for linking major rivers via canals has effectively been scrapped in the face of public opposition to its feasibility and concerns about its environmental impact

Gov't Denies River Project Is Grand Canal in Disguise
Opposition lawmakers are accusing Chong Wa Dae of surreptitiously relaunching the abortive cross-Korea canal project after the presidential office on Wednesday said it will push ahead with major repairs of the country's main waterways, calling it a Korean version of America's New Deal.
Bahk Jae-wan, the presidential secretary for state affairs planning, said in a radio interview on Wednesday that repairing the country's four major waterways could be seen as Korea's New Deal since it is a multi-purpose project that creates jobs, improves water quality, resolves a shortage of water and prevents flooding. But Park added the cross-Korea canal was a "completely different" project and that the repairs should be seen simply as a move to clean up the major rivers and increase supply of usable water.
But Liberty Forward Party leader Lee Hoi-chang said one look at the budget to repair the major waterways is enough to raise suspicions that it is the first step in the creation of a cross-Korea canal. He said the 2008 budget for the Nakdong River was W183.6 billion but this soared to W446.9 billion next year, up 243 percent. "The spending plan needs to be scrutinized to see whether it is purely for repair purposes." Democratic Party spokeswoman Kim Yoo-jung said the government's intention to link the waterway repair project with the cross-Korea canal construction was "as plain as day."
Prime Minister Han Seung-soo in a press conference denied the accusations and said the project will aid job creation and the revitalization of the economy.
(englishnews@chosun.com )

Korean firms' exposure to Wall Street fraud may reach US$100 mln SEOUL, Dec. 15 (Yonhap) -- South Korea's financial watchdog said Monday local financial firms' exposure to an alleged multi-billion dollar fraud masterminded by a big-time U.S. financier may reach around US$100 million. On Thursday, the U.S. Federal Bureau of Investigation arrested Bernard Madoff, former chairman of the Nasdaq Stock Market, on charges of securities fraud in a so-called Ponzi scheme, a pyramid-type swindle that promises early investors high returns with money from newcomers. Korean asset managers, insurers and the private school pension fund are likely to suffer losses after investing in hedge funds Fairfield Sentry and Primeo Select which entrusted Madoff's investment securities firm with billions of dollars, according to the Financial Supervisory Service (FSS), "Institutional investors are seeking to find ways to minimize potential losses by checking a possibility of retrieving their investment," an official at the FSS said. Korea Life Insurance Co., the country's second-largest insurer, invested US$50 million directly in hedge funds while six other institutional investors, including two pension funds, entrusted a combined $45.1 million to six local asset managers for investment in the funds, the FSS said. sooyeon@yna.co.kr(END)





Seoul stocks jump almost 5 pct on U.S. rally SEOUL, Dec. 15 (Yonhap) -- South Korean stocks spiked 4.93 percent Monday as foreign and institutional investors picked up big-cap shares following Wall Street gains, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 54.37 points to 1,158.19. Volume was heavy at 478.33 million shares worth 5.72 trillion won (US$4.18 billion), with gainers outpacing losers 817 to 109. "Foreign and institutional investors scooped up local shares after Wall Street took a boost on Friday from renewed hopes that a lifeline will be extended to cash-strapped automakers," said Kwak Jung-bo, an analyst at Hana Daetoo Securities. Steep gains prompted the Korea Exchange, the bourse operator, to suspend program trading for five minutes in early trading after the KOSPI futures prices rose more than 5 percent. Wall Street rallied Friday as the White House and the Treasury Department reassured stock investors they are ready to assist the beleaguered auto sector a day after the U.S. Senate voted to reject a US$14 billion aid bill. The Dow Jones industrial average rose 0.75 percent and the tech-laced Nasdaq composite index jumped 2.18 percent. Builders spearheaded the overall rally as investors bet the local government will place big orders to bolster the slowing local economy. Top builder Daewoo Engineering & Construction surged 14.51 percent to 10,100 won and Hyundai Engineering & Construction jumped 14.95 percent to 61,500 won. Auto shares also joined the market-wide rally. Hyundai Motor, the country's leading automaker, gained 7.14 percent to close at 45,000 won, and its affiliate Kia Motors Corp., added 7.29 percent to end at 7,210 won. Shipbuilders and steel makers also added substantial ground. Hyundai Heavy Industries climbed 10 percent to 220,000 won and POSCO added 4.13 percent to 390,500 won. Securities stocks were also boosted in anticipation of year-end stock rally. Mirae Asset jumped 6.47 percent to 79,000 won with Daewoo Securities rising 14.06 percent to 14,600 won. The local currency ended at 1,367 won to the dollar, up 5.5 won from Friday's close, as offshore investors snapped up won to purchase local shares, dealers said.


(LEAD) Ssangyong Motor wants to shut down sole plant for 3 weeks SEOUL, Dec. 15 (Yonhap) -- Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp., wants to shut down its sole plant from Wednesday for three weeks amid a sharp slump in sales and a prolonged liquidity crisis, union officials said Monday. If idled, it would be the third time this year that the troubled Ssangyong has suspended production at its lone plant in the port city of Pyeongtaek, about 70 kilometers south of Seoul. In a newsletter posted on its Web site, Han Sang-kyun, leader of the Ssangyong union, indicated the planned plant shutdown would meet strong resistance. "If the management pushes ahead with the shutdown, we will fight it out by mobilizing every possible means," Han said in the statement, calling the company executives and their Chinese parent "masters of excuses." Cha Ki-woong, a spokesman at Ssangyong, said the company has been still in talks with the union to win support for the plant shutdown. "Talks are still underway and no decision was made yet," Cha said by telephone. In May and June, Ssangyong halted production at one of its two assembly lines at the Pyeongtaek plant for six weeks and another three weeks from July 31 as vehicle sales tumbled. The troubles at Ssangyong, South Korea's smallest automaker, were deepening as the union warned against cutting employee benefits and idling the sole assembly plant. Ssangyong's Chief Executive Officer Choi Hyung-tak has asked SAIC to inject fresh capital to help Ssangyong weather the crisis. In the third-quarter of this year, Ssangyong lost 28.2 billion won (US$21.2 million), marking its fourth consecutive quarterly loss. Last month, the automaker's sales plummeted 63 percent from a year earlier to 3,835 units. Early this month, Choi of Ssangyong admitted the company's cash reserves were fragile, and added the automaker may face "a critical period" early next year. The Chinese state-run SAIC acquired a 51-percent stake in Ssangyong for $500 million in 2004.

S. Korea to invest 1.2 tln won to enhance energy efficiency By Lee Joon-seungSEOUL, Dec. 15 (Yonhap) -- South Korea will spend 1.2 trillion won (US$898 million) over the next several years to enhance its overall energy efficiency, which could help the government cut fuel costs and better cope with global warming, Seoul said Monday. The Ministry of Knowledge Economy said the plan, which also includes tax breaks and other incentives, aims to increase the country's energy efficiency by 11.3 percent by 2012. State backing will be centered on seven key areas, according to the ministry, covering information technology, energy storage, "green cars," light emitting diodes and energy efficient buildings. The government will also provide research and development support for so-called green home appliances, which include next generation TVs, air-conditioners and refrigerators, as well as for high-energy industrial equipment, including boilers, electric motors and furnaces, according to the ministryAs part of the plan, the ministry said it will phase out the use of traditional incandescent light bulbs for more efficient fluorescent products by 2013 and provide incentives for the manufacture and sale of hybrid cars sold after July 2009. The European Union announced it would phase out incandescent light bulbs by 2012 and Australia has pledged to do the same by 2013. Other measures announced by the ministry call for a negotiated agreement with companies that consume large amounts of energy to introduce energy management systems that can help reduce waste. State-run companies like Korea Electric Power Corp., Korea District Heating Corp. and Korea Gas Corp. will be required to adopt energy efficient resource standards that are designed to better predict demand and raise fuel efficiency. The ministry said that such efforts could improve the country's overall competitiveness by reducing costs and allow it to deal with growing pressure to join worldwide efforts to reduce greenhouse gases. Seoul is a signatory to the Kyoto Protocol but as a Non-Annex 1 member is not obliged to cut greenhouse gases at present. Experts, however, predicted that it may have to take some steps to contribute to the prevention of global warming after 2012, when a follow-up program to the Kyoto Protocol is expected to be drawn.

1. 63 percent says democracy backtracked during Lee’s first year in office: Kyunghyang Shinmun
2. Government to start 2009 projects in December with new year’s budget (Donga Ilbo)
3. Government to launch 10 trillion won project for 2009.
4. Economic slump eroding middle class (JoongAng Ilbo)
5. Government unfolds emergency plan for low-income households (Chosun Ilbo)
6. Ruling Party pushes through controversial bills with its majority status.(Hankyoreh)
7. Government to inject funds for troubled banks (Hankook Ilbo)
8. Accounting rules to be eased to help companies amid weak won (Korea Economic Daily)
9. Land ministry to set up underground development law (Maeil Business Newspaper)
10. 2009 budget passed by National Assembly (JoongAng Daily)
11. Nations faces worst jump in job market (Korea Herald)
12. Is budget big enough to revive economy? (Korea Times)
13. Government cuts 2009 growth prospect to 2%
14. Manufacturing backlog the highest in a decade.
15. Government to ease irregular worker restrictions
16. Special audits next year to focus on economic stability.
17. President preparing for pledged donation.



(LEAD) Lee vows massive infrastructure projects in provincial areas By Yoo Cheong-moSEOUL, Dec. 15 (Yonhap) -- President Lee Myung-bak said Monday that his government is planning to interlink all roads and railways across the nation and intensively implement other infrastructure expansion projects outside the Seoul metropolitan areas, as part of its economy-boosting measures. Lee also instructed his Cabinet to immediately embark on projects to refurbish the basin areas of the nation's four major rivers to drastically upgrade business, cultural and tourism infrastructures of the provincial areas.

Lee's remarks made during a meeting of the Presidential Committee on Balanced National Development triggered speculation that the government is seeking to revive the president-proposed inland waterway project, which has been put on hold in the face of stubborn objection from opposition parties and environmental activists. Over the weekend, the National Assembly controlled by the ruling Grand National Party approved a budget of 1.3 trillion won (US$970 million) for the redevelopment of the nation's four major rivers -- Nakdong, Han, Geum and Yeongsan -- next year, which is widely seen as a preparatory work for the controversial inland canal project. "We have to promote the concept of a singularized national land by removing barriers between Seoul and provincial areas... The government has a plan to connect all railroads and roads nationwide with one another, paving the ground for balanced development of the entire nation," said Lee. "About 22,000 Korean companies have relocated their operations abroad so far, whereas only 1,500 firms have moved from the capital area to provincial regions. My government will drastically improve business environment in provincial areas to address the structural problems," he said. The president then stressed that the planned refurbishment of the four major rivers and their basin areas is designed to improve business, cultural and sightseeing infrastructures in the provincial areas. He instructed the construction ministry to allow the participation of as many small and medium-sized companies as possible in the upcoming river redevelopment projects, and take extraordinary measures to eliminate relevant administrative red tape. Following the balanced development meeting, meanwhile, the government announced a plan to spend a total of 100 trillion won over the next five years on revitalizing the provincial economy, developing the basin areas of the four major rivers and improving livelihoods of provincial residents. The government also offered tax benefits for business entities moving from the Seoul metropolitan area to provincial regions and promised to implement targeted development projects in coastal and border areas. Specific development plans include the connection of the trans-Korean railway with trans-Chinese and trans-Siberian rail networks and the promotion of international cooperation and exchanges between Korean coastal areas and their neighboring regions in Japan and China.



Gov't mulls emergency support for bankrupt households SEOUL, Dec. 15 (Yonhap) -- South Korea plans to provide emergency relief to bankrupt households and underprivileged families suffering from the current economic slump, a government official said Monday. Temporary support could be given in the form of money needed to buy basic necessities and cover education-related spending, according to the official who declined to be identified. The relief funds are to be offered to people who have filed for bankruptcy and those that have fallen on hard times due to layoffs, accidents and illnesses, he said. After growing 5 percent in 2007, Asia's fourth-largest economy is expected to grow around 4 percent this year. Economic growth is forecast to slow down further to the 3 percent range, while some private think tanks are predicting 2 percent gains. Without going into details on the amount set aside by Seoul, he added measures are being taken to ease requirements so more people can become recipients of social security benefits compared to the past. The system has been criticized for having loopholes that effectively prevented some people from getting help. The government, meanwhile, said beside direct cash support, it will offer free training courses so people can find employment and hold onto new jobs. It will also expand earned income tax credit (EITC) from the original 130 billion won (US$97.3 million) to 470 billion won in 2009. The amount is sufficient to give help to 630,000 households. The EITC system is designed to help people in low-income groups with subsidies and tax benefits that can augment wages. It can act as an incentive for people to find and hold onto work. yonngong@yna.co.kr(END)



Gov't mulls emergency support for bankrupt households SEOUL, Dec. 15 (Yonhap) -- South Korea plans to provide emergency relief to bankrupt households and underprivileged families suffering from the current economic slump, a government official said Monday. Temporary support could be given in the form of money needed to buy basic necessities and cover education-related spending, according to the official who declined to be identified. The relief funds are to be offered to people who have filed for bankruptcy and those that have fallen on hard times due to layoffs, accidents and illnesses, he said. After growing 5 percent in 2007, Asia's fourth-largest economy is expected to grow around 4 percent this year. Economic growth is forecast to slow down further to the 3 percent range, while some private think tanks are predicting 2 percent gains. Without going into details on the amount set aside by Seoul, he added measures are being taken to ease requirements so more people can become recipients of social security benefits compared to the past. The system has been criticized for having loopholes that effectively prevented some people from getting help. The government, meanwhile, said beside direct cash support, it will offer free training courses so people can find employment and hold onto new jobs. It will also expand earned income tax credit (EITC) from the original 130 billion won (US$97.3 million) to 470 billion won in 2009. The amount is sufficient to give help to 630,000 households. The EITC system is designed to help people in low-income groups with subsidies and tax benefits that can augment wages. It can act as an incentive for people to find and hold onto work. yonngong@yna.co.kr(END)


Seoul education chief's office raided in election funding scandal SEOUL, Dec. 15 (Yonhap) -- Prosecutors raided the office of the Seoul education chief on Monday, intensifying their ethics investigation into alleged illegal donations to his and his defeated rival's election campaign. Investigators suspect interest groups largely financed candidates' campaigns in the first-ever direct election for superintendent of the Seoul Metropolitan Office of Education in July. Concerns soon arose that education policy could be influenced by such business interests. Kong Jeong-taek, who won the election with promises to push through conservative President Lee Myung-bak's competition-driven reforms, was suspected of drawing 1.8 billion won (US$1.3 million), or 80 percent of his campaign funding, through donations from private institutes, school meal agencies and private school owners. Investigators confiscated computer hard disks and documents from Kong's office as well as two offices of a leading private institute in Seoul suspected of funding his campaign, prosecutors said. Kong admitted to receiving the donations from school meal agencies and private institutes, but denied that he offered business favors in exchange. The donations were prompted by Kong's "personal relationships" with his campaign contributors, his office said earlier. Opposition parties are demanding Kong's resignation, saying he has already lost people's trust by acknowledging the donations. Kong did not appear at a parliamentary audit in October, citing high blood sugar levels. Kong, 72, was reelected to his third term in the direct election, narrowly beating Jou Kyong-bok, who campaigned on a platform of egalitarianism in the school system. Prosecutors are also looking into allegations that Jou accepted money from the Korean Teachers and Education Workers' Union, an umbrella organization of progressive teachers' unions. The Seoul superintendent wields ultimate power in executing the city's annual education budget of 6 trillion won, the approval of new schools and the supervision of 55,000 teachers and school staffers from public kindergarten to high schoolSeoul introduced direct voting for the position this year following the lead of several provincial cities to better reflect public opinion. The ethics scandal, however, has raised doubts about the effect of direct voting.

S.Korea says to spend $10 bln on rivers over 4 yrs

294 words
15 December 2008
6:26 AM GMT
AFX Asia
English
(c) 2008, AFX Asia. All rights reserved.

SEOUL, Dec 15 (Reuters) - South Korea plans to spend about 14 trillion won ($10.35 billion) over the next four years on improving and redeveloping the country's four main rivers and adjacent areas, the land ministry said on Monday.
The ministry said in a statement that it would draw up more detailed plans early next year but estimated in a draft plan released on Monday that the investment would create a total of 190,000 jobs and stimulate provincial economies. The money would be spent on dredging, environmental cleanups, redirecting watercourses and waterfront development. The main opposition Democratic Party has long criticised the government for proposing big construction projects, which it says will end up wasting billions of dollars in taxpayers' money, mainly to win popularity from voters in regional provinces. President Lee Myung-bak won an election last year by a big margin with pledges including one aimed at linking up the country's rivers into a canal. The canal project was later dropped due to public opposition. South Korea is focusing its policy on creating jobs and boosting domestic demand as Asia's fourth-largest economy is in danger of slipping into its first recession since the 1997-1998 Asian financial crisis in the face of deepening global recession. ($1=1352.4 Won) (Reporting by Yoo Choonsik; Editing by Keiron Henderson) Keywords: KOREA ECONOMY/RIVERS (choonsik.yoo@thomsonreuters.com; +82 2 3704 5580; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)