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This page is graphically intense with long load times due to photos. However, the photos and narratives by the men who served at Osan Air Base makes the wait well worthwhile. The opinions expressed are those of the author and in no way represents any official statement of Osan AB or the USAF.

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If you wish to listen to some golden oldies from 1940s-1990s, click on the selection on the list below. There are about 80 full-length songs to choose from. (NOTE: Song audio degraded due to space limitations, but adequate for computer listening.) Click For Music 1940s: Billie Holiday_As Time Goes By 1940s: Kate Smith_God Bless America 1940s: Mills Brothers_Glow Worm 1950s: Big Bopper_Chantilly Lace 1950s: Bill Haley Comets_Youre Never Too Old To Rock 1950s: Coasters_Yakety Yak 1950s: Danny And TheJuniors_At The Hop 1950s: Del Shannon_Handyman 1950s: Doris Day_By The Light Of The Silvery Moon 1950s: Fats Domino_I Hear You Knockin 1950s: Freddie Canon_Palisades Park 1950s: Nat King Cole_Ramblin Rose 1950s: Pat Boone_Love Letters In The Sand 1950s: Red Skelton_Pledge Of Allegiance 1950s: Ricky Nelson_Listen To The Rhythm Of The Falling Rain 1950s: Ritchie Valens_Boney Maronie 1950s: Ritchie Valens_Donna 1950s: Ritchie Valens_LaBamba 1960s: Beach Boys_Surfin USA 1960s: Beach Boys_Barbara Ann 1960s: Beatles_Strawberry Fields Forever 1960s: Bobby Vee_Go Away Little Girl 1960s: Chubby Checker_The Twist 1960s: Chuck Berry_Johnny Be Good 1960s: Crosby Stills Nash_Teach Your Children 1960s: Dean Martin_Make The World Go Away 1960s: Elvis Presley_Blue Suede Shoes 1960s: Elvis Presley_Love Me Tender 1960s: Harry Belafonte_Day O 1960s: James Darren_Goodbye Cruel World 1960s: Johnny Mathis_Chances Are 1960s: Kingsman_Louie Louie 1960s: Marcels_Blue Moon 1960s: Marvin Gaye_Lets Get It On 1960s: Paul Anka_Put Your Head On My Shoulder 1960s: Harry Belafonte_Day O 1960s: Righteous Brothers_Youve Lost That Loving Feeling 1960s: Johnny Mathis_Chances Are 1960s: Peter Paul Mary_The Marvelous Toy 1960s: Roy Orbison_Only The Lonely 1960s: Roy Orbison_Pretty Woman 1960s: Sam The Sham_Wooly Bully 1960s: Shirelles_Soldier Boy 1960s: Silhouettes_Get AJ ob 1960s: Simon And Garfunkel_Bridge Over Troubled Waters 1960s: Thunderbirds_Hippy Hippy Shake 1960s: Tony Bennett_San Francisco 1960s: Ventures_Apache 1970s: Bette Midler_The Rose 1970s: Cher_If I Could Turn Back Time 1970s: Commodores_Three Times A Lady 1970s: Crystal Gayle_Ill Do It All Over Again 1970s: Dione Warwick_Ill Never Love This Way Again 1970s: Engelbert Humperdink_Release Me 1950s: Fleetwoods_Mr Blue 1970s: Lovin Spoonful_Rain On The Roof 1970s: Mamas And Papas_Age Of Aquarius 1970s: Mamas And Papas_California Dreaming 1970s: Mamas And Papas_Monday Monday 1970s: Tina Turner_Whats Love Got To Do With It 1970s: Tony Orlando And Dawn_Tie A Yellow Ribbon 1970s: Troggs_Wild Thing 1980s: Aaron Neville Linda Ronstadt_All My Life 1980s: Bruce Springsteen_Born In The USA 1980s: Kenny Loggins_Footloose 1980s: Kim Carnes_Betty Davis Eyes 1980s: Kris Kristofferson_Loving Her Was Easier 1980s: Lee Greenwood_God Bless The USA 1980s: LindaRonstadt_Desperado 1980s: Linda Ronstadt_Thatll Be The Day 1980s: Marie Osmond Dan Seals_Meet Me In Montana 1980s: Michael Jackson_Billie Jean 1980s: Michael Jackson_You Are Not Alone 1980s: Michael Jackson And Friends_We Are The World 1980s: Michael Jackson_Ill Be There 1980s: Phil Collins_In The Air Tonight 1980s: Ricky Nelson_Garden Party 1980s: Ronnie Milsap_Lost In The 50s Tonight 1990s: Kenny G_Auld Lang Syne 1990s: Luther Vandross_Id Rather 1990s: Ricky Martin_Livin La Vida Loca Free JavaScripts provided by The JavaScript Source

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ROH MOO-HYUN, RADICAL REFORMIST OR ANTI-AMERICAN

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Roh Moo-Hyun: Anti-American or Radical Reformist?

Anti-US Seoul Protest (31 Dec 2002)

When he was swept into office on his anti-American platform in 2002, we thought him an opportunist politician as the anti-American protests ceased on 1 Jan 2003 with only a word from him. Then he laid out his platform in Feb 2003 and we thought he was a radical reformist.

Roh Inauguration

Then the scandals, promises and tantrums and direction he was taking the country showed him to be a "leftist" -- a term that is just shy of "communist." (His supporters prefer to call him a "progressive.") The MDP (Millinieum Democratic Party -- later to become simply the Democratic Party) were sore enemies as Roh had used the party to gain the Presidency and then immediately abetted the split away to form the Uri Party. Once it was established, he joined the Uri party. He was impeached by the combined might of the GNP (Grand National Party) and MDP in Mar 2004, but it back fired as they used the flimsiest of excuses to attempt to impeach him. Roh likely could have derailed the impeachment process and prevented the accompanying domestic crisis by issuing an apology or mea culpa, but he didn't.

Roh Moo-hyun (Dec 2002)

The impeachment was a disaster -- for not only the GNP and MDP, but also for the country. The GNP & MDP politicians had no idea how any country will rally around their President when he is under attack -- even if they hate his politics. It cost the GNP and MDP dearly in the Apr 2004 election that swept the Uri Party into a majority in the National Assembly, though by a slim margin. Luckily the government had Goh Kun at the reins for the 64 days that Roh was out of office. Goh deftly calmed the people and prevented the country from disintegrating into anarchy. Later the Supreme Court ruling over-turned the impeachment (in a split decision) -- and Goh resigned. Roh taking the victory of the Uri Party at the polls, Roh announced the he had a "mandate" from the people. He started to make his changes.

By Aug 2004, he was making his moves to change Korea in a direction that certainly was to become a slippery slope. His lack of effective economic policies has led the country into a recession that three years later is still trying to "turn the corner." The best that could be said of the Roh administration is that it was "government run by amateurs." It has turned into a government of "cronyism" where loyalists to Roh are rewarded -- while those who speak out against him are branded as evil-doers, such as the conservative newspapers called the "Gangster Press." They are "punished" through the use of the National Tax Service (NTS) audits and Fair Trade Commission (FTC) crackdowns on alleged "monopolies."

Although he gained a short-lived resurgence of popularity in response to his 2003 call for a referendum on his presidency and the electorate backlash against the 2004 impeachment, his approval ratings have steadily declined. Shortly after assuming office, Roh alienated his critical political base of young, liberal voters by abandoning several progressive campaign pledges. By the 100th day of his presidency, his approval ratings had fallen to 50%, way below the 60-80% ratings of predecessors Kim Dae-jung and Kim Yong-sam at the similar mark. In the by-elections of April 2005, the main opposition Grand National Party (GNP) won five of six seats in the National Assembly while the Uri Party won none -- dealing a blow to the Uri Party "mandate." However, it appears the move was not so much a support of the GNP but rather the people's disaffection with the Roh policies. A 12 July 2005 poll by Munhwa Daily and the Korea Society Opinion Institute (KSOI) showed only 25% of the public approved of Roh's handling of the presidency. Support for the ruling Uri Party was down to 19% and less than 20% of survey respondents said the party has a chance to win the 2007 presidential election. Most troubling for the Uri Party was that several surveys showed it losing support among young voters, one of its key constituencies and previously staunchest supporters.

Roh emerged from his 2004 impeachment saga with a legislative majority, a severely weakened opposition, and a popular mandate that provided a honeymoon period in which the electorate was generally supportive of his progressive policies. Roh was unable to press his advantage to push reform legislation through the National Assembly. The president's inaction caused public support to dissipate and eventually resurrected criticism of his policies and leadership. The level and ferocity of acrimony within the National Assembly resumed, impairing the legislature's ability to reach consensus on domestic reform bills. (Source: Nautilus.)

Roh's presidency has been a disaster. Both Korea’s economic growth and income distribution index dropped below average after the Roh Moo-hyun administration, which promised more of both, took power. That is the first time since 1980.

The Citizen’s Coalition for Better Government released the results of a survey of 426 professionals, including civil servants, professors, and businessmen at a forum evaluated the Roh administration’s performance over its first three years on 17 Feb 2006. The adequacy of government personnel management, and the level of the government’s democracy, efficiency, and credibility of governance were areas in which the administration got lower marks than last year. The government did not receive a single “average” score (3.0 points) in any evaluation area. Professor Park Hyo-jong of Seoul National University evaluated the past three years as a period where the government had determination, but lacked know-how. He added that the government’s low approval ratings are due to its appointment of certain like-minded people to the cabinet, obsession with the past, and lack of comprehensive leadership. (Source: Donga Ilbo.) The approval ratings of Roh has declined in 2006 -- but it has been consistently around the 30 percent mark. His approval rating was 31 percent in Feb 2004; 38.4 percent in 2005; 30.9 percent in Feb 2006.

A report titled “New Visions and Strategies for Balanced Growth” published by the National Economy Advisory Council says the Korean economy recorded average annual growth of 6.9 percent since 1982 and an annual average income distribution index of 0.7 (the closer to 1, the more equally wealth is distributed). But growth has been well below that for the last three years, standing at 3.1 percent, 4.6 percent, and 4 percent since 2003, when this government took power. The income distribution index also slipped slightly below average in the same period to around 0.69. (Source: Chosun Ilbo.)

We would like to repost here what we wrote in August 2004 about his presidency in order to compare it to what is happening today in 2006. When seen in retrospect, the grand "vision" of Roh becomes clearer -- but it is NOT a pretty picture. We have added our commentary item by item. Excerpted from President Roh Moo-hyun: Anti-American or simply a Radical Reformist?.

Roh Makes His Move to Turn the "Reformist" Government into "Leftist" (Aug 2004) In July Roh Moo-hyun was under attack for his Truth Commission having former North Korean spies as investigators; the commissions attempts to make convicted spies into "fighters for democracy"; and then the commissions attempts to make the assassin of President Park Chung-hee into a "fighter for democracy." He stated that an attack on the Truth Commission was a personal attack on him. He then went before the National Assembly and asked for increased powers to investigate past wrongs.

(SITE NOTE: In February 2005, the National Intelligence Service (NIS) Development Committee for Clarifying the Past, or "Truth Committee," led by Rev. Oh Choong-il, began to reinvestigate seven suspicious cases from past authoritarian regimes, including Inhyoktang. Roh defended it as a matter of utmost importance to redress the past wrongs that had been hidden in secrecy. The history law passed in May 2005 under the mantle of righting past wrongs will obviously play a key role in portraying privilege and former governments as enemies of the nation and the state. (See Roh to "Correct" History by looking into Past Wrongdoings of NIS for recent events.)

In Nov 2005, the "Truth Committee" issued its findings on the Inhyoktang and Mincheong Hangnyon organizations. The committee alleged that the Park Chung-hee regime had no evidence other than the forced confessions to prove that Inhyoktang was linked to North Korea. In addition, its structure was not coherent enough to be called a party and it did not officially adopt a manifesto, pledging loyalty to Kim Il-sung, founding father of North Korea. The committee said the Inhyoktang was a small gathering-level organization rather than a party, and that there was no proof that the gathering had any intention to overthrow the government. It also said that Mincheong Hangnyon was an organization of students fighting for a democratic government, and that there was no evidence of it having received any directions from North Korea. Investigators said the government should compensate the victims of the dictatorial regime and seek ways to redeem their honor. But what stands out was that there were no confessions, no revelations, no proof -- despite the 20 "investigators" (activists hired to pursue their agenda). It was all circumstancial evidence and speculation. (Source: Korea Times, 7 Dec 2005 and Korea Herald, 8 Dec 2005.)

The agenda of the "Truth Committee" is very plain to see. Its purpose is to provide ammunition for the repeal of the National Security Law by focusing attention on the "evils" done by this law -- without addressing the security concerns the NSL covers. (NOTE: The majority of Koreans feel the NSL needs to be amended, but retained.) In addition, it seeks to elevate the status of the former activists in the Roh cabinet to the level of "freedom fighters" while painting as a demagogue Park Chung-hee and discredit his daughter, Park Geun-hye of the GNP by extension. Lee Hae-chan, Prime Minister, is listed as being "Imprisoned for Involvement in Mincheong Hakryeon Case" in 1974-1975. (Source: Korea Net.) Chung Dong-young, former Unification Minister, is listed as being "Imprisoned for Involvement in Mincheong Hakryeon Case" in 1973. (Source: Korea Net.)

See State Ordered to Pay 1.5 billon won for Professor's Death (Jan-Feb 2006) for details of how the Supreme Court used the findings of the 2002 Truth Commission to overturn the lower court ruling that the statute of limitation had run out on prosecution of the "unsolved death" -- and then went further to fine a former KCIA investigator, Mr. Cha, 20,000 million won for "defamation" in the "unsolved death." In its ruling it held the government liable for the KCIA tortures and would open the door to future suits dealing with "torture" that have passed the five-year statute of limitations. (NOTE: The point is that the Supreme Court did not change over-rule the statute of limitations, but instead said the "probable" torture and death was an "exception.") This fits perfectly in the Roh agenda -- but we question how the courts now define "most likely" and "probable"

(NOTE: As Park Chung-hee is considered a folk-hero because of his contributions to the "Miracle of the Han," any action to bring him down elevates the activists such as Chung and Lee to "freedom fighter" status. The same tact is used for Chun Doo-hwan. Kim Geun-tae, former Health Minister, was a noted activist imprisoned and allegedly tortured during the Chun Doo-hwan administration. Chun Doo-hwan was stripped of his medals by Roh in 2005 to humiliate Chun -- and by the same stroke elevate those who fought against his regime to "freedom fighters.")


Former President's at Roh Inauguration (SITE NOTE: Chun Doo-hwan and Roh Tae-woo would continue to feel the wrath of the "progressives" under Roh as they were stripped of their medals and any property that they had.)

In addition, Roh has also used the National Human Rights Commission (NHRCK) as a tool to also push his "leftist" agenda -- even over items that Constitutional Courts have ruled as constitutional such as mandatory military service. In Jan 2006, it released its National Action Plan (NAP) that contained recommendations that alienated conservatives and the business community. The Roh administration stated it would "filter" the recommendations only after it started to become controversial. (See NHRC Action Plan Controversy (Jan 2006) and Backlash on NHRC Ruling of Riot Police Abuse (Jan 2006).)

He then turned to the various ministries to do a "self-examination" and to voluntarily "confess" their past ills. Of course, the first to jump on the bandwagon was the newly "reformed" NIS -- formerly the KCIA with which all past violations were aimed. Other Ministries were not so enthusiastic, but the heads promised to look into the actions.

(SITE NOTE: The NIS did not look hard enough. In July 2005 local television station MBC reported the contents of an illegally wiretapped conversation by the National Intelligence Service (NIS) between Ambassador to the US, Hong Seok-hyun, then the chairman of the JoongAng Ilbo, which was formerly affiliated with Samsung Group, and Samsung vice chairman Lee Hak-soo discussing to provide slush funds for presidential candidates ahead of the 1997 elections. The 1997 scheme by Samsung was to influence various politicians including GNP leader Lee Hoi-chang, by providing financial support to them in the presidential election of 1997. Hong resigned on July 26, 2005.

The NIS wiretap scandal implicated both the Kim Dae-jung and Kim Young-sam administrations by a special wiretapping unit of the NIS called "Mirim." In concluding its lengthy probe on the wiretapping scandal, however, the prosecution decided not to take legal action against high-ranking executives of the conglomerate, including Hong and the group's chairman Lee Kun-hee, citing lack of evidence. (Source: Korea Times.))

Roh launched a personal attack on Park Chung-hee claiming his Japanese collaborator as a lieutenant in the Japanese Army. Understandably, the GNP chairman and Park's daughter, Park Geun Hye, did not take this lying down. Roh was asked to clarify his "ideology" as it affected the nations plans. More and more people were starting to question his intentions in pursuing this tact. In fact, his strategy backfired when Rep. Shin Ki-man, chairman of the Uri Party, said in August 2004 that he was likely to announce his resignation from the ruling party's top post, taking responsibility for his father's alleged collaboration with Japan during the 1910-1945 colonial period. He looked more and more out of control. Park's daughter Park Geun Hye apologized personally to Kim Dae-jung for her father's actions against him -- and at the same time to thank him for his fostering the Park Chung-hee Memorial in August 2004. The move was blatantly political -- but it thwarted Roh's thrust to use Kim Dae-jung in his plans to justify the Japanese collaborator investigation.

(SITE NOTE: After Park Geun-hye outmanuevered Roh on the Memorial, the Roh administration cut off funding for the Park Chung-hee Memorial project citing the fact that the promoters came up with only 50 percent of their promised share. The promoters took the matter to court and in 2005 won the decision that the government would have to fund the project. Though Roh continues to target Park Chung-hee as a tyrant, most Koreans still consider him a hero as the architect of the "Miracle of the Han" who brought prosperity to Korea.)

Roh continued his "witch hunt" but it soon became clear that the targets were selective. The agenda of the Roh administration was to foster "egalitarianism" -- taking from the rich and giving to the poor in Robin Hood fashion to close the gap between the haves and have-nots. The persons on the "list" of 1300 persons from a 'progressive" activist group targeted the elite of Korean society -- most of whom are dead and unable to defend themselves. The criteria for being a "collaborator" is that one profitted during the Japanese occupational period -- but this is a form of revisionist history in applying present standards to come up with judgements of past events.

After approval by the National Assembly the plan to relocate the Capital from Seoul continued -- though there were various attempts to foil the move. Prime Minister Lee Hae-chan came out in favor of the capital, but forces were mobilizing to thwart the move. Despite the costs that many Koreans feel Korea can't afford, Roh has pressed forward with his campaign promise. Calls for a national referendum has been heard, but the courts overruled the effort. By August 2004 the site for the new administrative capital had been selected at Yongi-Kongju in South Chungchong Province and a massive push on the part of the administration to get the move to a point of no return. The GNP on the other hand is in the way of making it an easy process. The Seoul City Government on 14 Aug 2004 presented a written opinion to the Constitutional Court to demand the court rule against the President Roh Moo-hyun administration's plan to move the nation's capital out of Seoul. The Seoul city government submitted the 2,300-page document at the request of the court, which made similar requests to the ministries of construction and transportation and justice.

(SITE NOTE: The Constitutional Court ruled against the move of the capital out of Seoul using a curious justification that Seoul was the "traditional capital" of Korea. However, the Roh administration used a different tact and passed a law for the creation of an "administrative city." On 24 Nov 2005, the Constitutional Court rejected the petition against the special law and the court's judges ruled 7-2 that the special law was constitutional citing, "The special law on a new administrative city is not regarded as a division of the capital." By doing so, the court ruled the government could move two-thirds of its ministries to a proposed administrative area about 160 km (100 miles) south of the capital Seoul. Under the plan, 12 of the government's ministries and 30 state-run organisations will move by 2012. Under the special law, the presidential office, high courts and legislature would remain in Seoul along with the foreign, defence and unification ministries. The ministries and agencies that do move will go to the same initially earmarked province. Roh ordered the project to start and Park Geun-hye, leader of the GNP, said on her party's Web site she respected the ruling.


Administrative City Residents Battle over Land Prices for Administrative City (19 Dec 2005)

However, Roh is playing with a stack of mirrors. The Ministry of Finance and Economy estimates a total of 45 trillion won will be spent until the whole project is completed by 2030 -- BUT the special law stipulates that no more than 8.5 trillion won should be spent on the construction of new ministry buildings and roads and other infrastructure of the city. The groundbreaking for the project is expected to be done in the latter half of 2007 after the government confirms more specific development plans. However, owners of the land openly protested the meager monetary compensation in Dec 2005 and battles with riot police. In Jan 2006 the residents refused to sell their lands to the government because the money offered would not pay for land replacement. Speculation -- that Roh had promised to stop -- had driven the land prices up in the affected areas.)

Then in August 2004 Roh made his moves to change the Ministry of Defense into a civilian controlled operation. In addition Roh told the military to get used to the idea of his rapprochement. He urged the military to try to adjust to the changing security environment on the Korean Peninsula given the reconciliatory mood in inter-Korean relations. The remark comes following the dismissal of Defense Minister Cho Young-kil in July, when controversy erupted over the misreporting of radio communications from the North at the inter-Korean maritime border on the Yellow Sea. There was a lot of disgruntled military over the treatment of senior generals for past practices. Military commanders complained of what they called the harsh punishment given to the four-star general Shin, deputy commander of CFC, saying the embezzlement should be seen as a "customary appropriation" of funds for the operation of Army units. Rumors abounded at the time that Shin's arrest might signal the beginning of Roh's reshuffle of the military.

(SITE NOTE: Many military positions in the Ministry of Defense have been eliminated under a reorganization plan completed in 2005. The reorganization appears to be aimed at consolidating the power in the Ministry of Defense -- and subordinating the Joint Chiefs of Staff control of the services. However, what may be happening is a plan to install "progressives" into the key positions -- to ensure their power into the next administration.

Though we can't say for sure, the impression we have is that the military establishment is taking a "bide-your-time" attitude in cooperating with the Roh "self-reliant" policies, but at the same time working within the realities that the ROK doesn't have the monies nor the resources (tax base) to fund the new "self-reliant defense." While Roh takes an in-your-face confrontational style with the US, the MND has cooperated for the most part with the USFK. (NOTE: The result was Roh firing the chief negotiator with the USFK in 2004 for what he considered "giving away the farm" during the Future of the Alliance (FOTA) talks.) The current Minister of Defense is a retired admiral who knows well the reality of the military, but he is also a politician who has survived repeated calls for his resignation to take responsibility for events over which he had no control. His actions to walk the political tightrope while preserving the military capabilities seems consistent with the role of a dedicated servant who must follow his master's wishes -- but has the intelligence to know how to impede abhorent actions in bureaucratic red tape, while supporting positive ones with the limited resources that is available. The MND has worked with industry to foster an indigenous defense industry -- but has to find the cheapest solutions for foreign buys because it is always underfunded. Its percentage of the GDP pie has been promised to be increased for years, but consistently remained around 2.8 percent of GDP. The MND announced in 2004 that after years of making projections of increases that it was going to have a budget around 2.8 percent of GDP until the end of the Roh administration. The conflict is that the US wanted the ROK to shoulder defense spending at 3.2 percent of GDP -- and invested $11 billion in upgrading its USFK forces. The foot-dragging on the Camp Humphreys relocation (cost-sharing and pollution claims) are instigated by National Assembly and NGO activist groups (i.e., Green Korea). The procurement of lands is under the Korea Land Development Corporation -- not the MND. Overall, we view the MND as a "friend" and "partner" of the US -- while we view Roh as an reluctant "anti-American" ally.

Roh also urged the military to reform itself by volunteering to bring light to its past wrongdoing so it could regain people's trust. This statement unfortunately is based upon the premise that the military did wrong -- and is the basis of the Truth Commission mandate. "We can get fresh trust only if we shed light on past irregularities," he said. "We've yet to clearly shed light on the unjust history under past military governments."

On 13 Aug 2004, Roh ordered Unification Minister Chung Dong-young to head the standing committee of the National Security Council (NSC) so that the minister can deal more effectively with national security issues. Chung will head unification, foreign affairs and security issues. The NSC was asked to assist Chung in his tasks on security. However, according to political observers, the move also may also be part of a strategy to nurture prominent figures within Roh’s administration as potential candidates for the 2007 presidential election. Chung is the former head of the Uri party who kept shooting himself in the foot during the by elections of 15 April 2004 -- and resigned to take a position under the Roh administration.

(SITE NOTE: In April 2004, Chung Dong-young stated that the elderly did not have to vote in the upcoming election causing a flap that ended up in his losing his post as chairman of the Uri Party. As is now the pattern of Roh's administration, Chung was given the job of Minister of Unification. As the "chosen one" he was allowed in 2005 to have face-to-face negotiations with Kim Jong-il; vist the Zaytun troops in Iraq; and visit Washington to explain the ROK position on North Korea dealings. All of this was to give the former Uri Party Chairman the credentials as an international statesman in his run for his presidency candidacy in 2007. In Jan 2006, Chung Dong-young resigned as Unification Minister to run for the Uri Party leadership -- and ultimately the nomination for President in the 2007 elections.

However, Chung also illustrates a practice that Roh has put into effect since he entered Cheong Wa Dae -- "Government Spoilage." Just as Chung was "promoted" after he lost the Uri Party chairmanship, others have also benefitted from the Roh method of rewarding loyalty. In Nov 2004 it was reported that 61 politicians and 84 public servants had been rehired in affiliated organizations of the government. In particular, all 61 politicians were from the Presidential Election Management Committee, the Committee for Undertaking Presidency, and the ruling Uri Party. This practice continued into Jan 2006 when Roh nominated Lee Sang-soo as labor minister after serving a year in jail and being rejected at the polls by his constituents. Only under the Roh administration can a corrupt politician who was sentenced to prison be given a cabinet minister's job. In March 2004, Lee was sentenced to one year in prison for masterminding illegal political fundraising from local corporations to finance the election campaign of President Roh Moo-hyun, then the ruling Millennium Democratic Party (MDP)'s presidential candidate. Lee was arrested for receiving W3.2 billion (US$3.2 million) in illicit funds and sentenced to a one-year prison term by the Supreme Court in November 2004. In August 2005, Lee was pardoned and had his civil rights restored by Roh --- and in Jan 2006, he was appointed by Roh as Minister of Labor.

Another problem Chung has been in the center of is the "giveaways" that have been taking place with the North. Despite $3.5 billion in South Korean aid during the past decade, Seoul has achieved little change to North Korean behavior or the nature of its regime. The rising cost of Seoul's engagement policy is starting to concern the public -- especially since Roh has unwisely chosen to weaken the US-ROK alliance in favor of his "self-reliant defense" forcing the ROK to modernize its defenses at rates it cannot afford. The ROK budgeted W620 trillion (US$620 billion) for the military reorganization plan -- assuming prospects for the inter-Korean relationship remain rosy. In addition, the ROK must also foot other Roh pet projects such as the relocation of the "administrative city" that are going to cost more than has been allocated. In Jul 2005, South Korea's proposal to provide two million kilowatts of electricity to the North would cost $11bn through 2018 and was predicated on being in lieu of Seoul's obligation to 70% of the cost of the KEDO $4.5bn LWR project that is now defunct. In Jan 2006, the public was starting to question whether Roh's concern for the welfare of the North was more important the welfare of the South suffering from a prolonged recession and joblessness. Then in Jan 2006, Roh announced that there simply was not enough funds to support the long-range programs that he had committed the nation to -- meaning that a tax increase was imminent. (See Roh Administration Seeking to Find New Tax Funding (Jan 2006) for details.))

At the same time, President Roh announced his intentions to share his workload with the prime minister whose role has so far been seriously restricted. "In that sense, the change should be seen as establishment of a system in which the prime minister is responsible for state policies rather than politics," Prime Minister Lee Hai-chan said at a luncheon meeting. After Prime Minister Goh resigned following the overturning of Roh's impeachment motion, Lee's position has been severely limited. However, there are concerns that Roh is using Lee as a lightning rod to take the blame if things go wrong, while Roh still controls the action from the background.

(SITE NOTE: As it turned out, Roh has been the lightning rod and Lee Hae-chan has turned into the real power behind the formulation of domestic policy -- much to the consternation of conservatives. Roh has made blunder after blunder that his staff has had to "explain." His unusual public displays of self-criticism and off-the-cuff policy statements have unnerved the populace and raised concerns over his aptitude as president. His constant tact to "mobilize the people" instead of using the political arena to further his programs has started to wear thin. Roh has vacillated on his policies towards the US and the economy, sending conflicting signals on the importance of the alliance and the government's attitude towards foreign direct investment. He has implemented a series of inconsistent policies that have often been withdrawn when confronted by opposition by the public, the Uri Party or advocacy groups. As a result, he has alienated both conservatives and liberals, undermining his political base and constraining his influence.

Policymaking hampered by amateurism and government infighting. Roh's implementation of a decentralized, non-hierarchical governmental structure has led to a dysfunctional policymaking structure marked by confusion and animosity amongst the Blue House (presidential office), the prime minister, the ruling Uri Party, and the legislature. He exacerbated the chaos by an over-reliance on politically inexperienced aides and delegating extensive power to 23 presidential committees. Prime Minister Lee Hae-chan warned against the "domination of presidential aides and private organizations." According to a World Bank report, the quality of South Korea's governance ranking fell measurably during the past two years in several categories, including: political stability, effectiveness of civil servants and administrative service, quality of regulation, and corruption control. (Source: Nautilus.)

The status of South Korea's long-awaited national economic recovery is foremost on the electorate's mind, more so than the North Korean nuclear threat or ideological differences between political parties. Despite the president's repeated promises to focus his attention on improving the economy, he is perceived as having expended his political capital on peripheral issues, such as relocating the national capital from Seoul, rescinding the National Security Law and probing into historical issues. Economic indexes for the first half of 2005 were adjusted downward in July to 3%, lower than last year's growth and contrary to Roh's promises of 7% growth, raising public and investor concerns. The government front-loaded government spending in the beginning of the year in an attempt to jump-start the economy, though to little avail. (Source: Nautilus.)

Consumer and investor confidence in South Korea's economic recovery has remained tenuous and volatile due to domestic and international events. The rising price of oil has undermined hopes of improved economic status by year's end. The deputy premier for finance and economy recently assessed that the economy "may fall into a long-term recession like that of Japan." As of Jan 2006, CEOs of the major corporations were still split evenly over whether the ROK had "turned the corner" on coming out of the prolonged recession or was still in the midst of it though it had bottomed out.

Scandal after scandal amongst his cabinet members have entailed replacements like a revolving door. However, most admit that he is a better Prime Minister than he was an Education Minister under Kim Dae-jung. In that position, he tried to implement the ridiculed "egalitarian" education movement -- that has been repackaged and reissued as school reform in the Roh administration.

Despite a campaign pledge to eliminate government corruption, throughout his presidency Roh has been beset by scandals involving close aides. Although there have not been any credible accusations against Roh personally, the scandals provide fodder for political opponents to criticize the president and derail his policy initiatives. The latest series of allegations involve Representative Lee Kwang-jae, a long-time aide to Roh, who has been accused of orchestrating the National Railroad's misguided investment in a Russian oil project, which resulted in a multi-million dollar loss for the company. Two Roh aides, former presidential Secretary for Economic Affairs Chung Tae-in and former Chairman of the Presidential Committee on Northeast Asia Cooperation Initiative Moon Chung-in, were indicted in August 2005 for exercising undue influence in support of the Haengdam Island development project. (Source: Nautilus.))

The US was forging ahead with its reduction in forces moves while Roh still clung to his "self-reliant" defense ideas to unrealistically have the ROK able to maintain its own defense by 2010. This is a pipe-dream which all state is impossible -- especially since the Roh administration and Uri Party will not increase the military budgets significantly. It will take a minimum of a 3.2 percent of GDP -- which Seoul promised in 2003, but only delivered a 2.9 percent budget. Add in the massive expenditures needed to relocate the capital of Seoul south, this idea of military upgrades is threatened from the start.

(SITE NOTE: Roh's dreams of his "self-reliant" defense is coupled with the demand in Oct 2005 to control the ROK troops in time of war has added headache after headache to the USFK. The alliance has been strained to the limit -- and now things are awaiting the signing of the Japanese Restructuring and Reorganization Treaty in Mar 2006 to see what future actions the US will take. There appears to be moves to allow the dissolution of the CFC which in turn will free the US from "joint defense" of the ROK -- but rather become the "supporting partner" in case of attack. For its part, the Roh has had to face the reality of his decision as the cost is astronomical -- and now that the US has declared that it will not be the "patron" of the ROK, the contracts are being let to other countries -- but at a cost to the US-ROK alliance. The ROK budgeted W620 trillion (US$620 billion) for the Military Reorganization Plan -- assuming prospects for the inter-Korean relationship remain rosy. However, in pursuing its upgrade to high-tech weaponry, the ROK finds technology transfer -- to build its indigenous arms manufacturing capability -- more important than national defense.)

The US is firm on its reductions of 12,000 by 2005 -- while the ROK continues to try to hide the anti-American demonstrations that are on-going in Korea. The move out of Yongsan now moved to 2008 still remains threatened by a "reformist-minded" Uri Party controlled National Assembly.

(SITE NOTE: In 2004, the protestors stopped using English on their signs to say "Yankee Go Home." They found that these drew international attention. Instead, protestors now say "Yankee Go Home" -- or the more generic "American Soldier (Migun) Go Home" in hangul to prevent the bad press. As the USFK pulls out of the camps along the DMZ, much of the ammunition against the USFK has been eliminated.

Declining public support led Roh to pursue increasingly nationalist policies. His strident rhetoric against Japan in response to the Dokdo Island and Japanese textbook issues led to a short-term response in public support. His position over the Yasukuni Shrine visits by Japanese Prime Minister Koizumi has been used by Roh to derail any Japanese summit -- though it is to the benefit of the country. The ticklish problem is that large segments of Roh's political base support stronger anti-American statements and policy. In 2006, anti-Americanism is still alive and well in Korea.

In 2004 the cause celebre was the oft-heard phrase: "Tokdo is OURS!!!" When his approval ratings plummeted, Roh cranked up the nationalistic fervor. From school kids to grandmas, everyone beat their chests that the Japanese were out to again "take" what was rightfully Korea's. The truth was that the rock called Tokdo is "disputed." The Japanese said that they were willing to take the case to the World courts, but it was KOREA that refused. Both the Japanese and Koreans had previously agreed to allow the area to be a "joint fishing zone." However, soon the Koreans simply crowded out the Japanese -- and when the Japanese complained, the Korean gunboats showed up to "protect" Tokdo.

In 2005, the whole situation under Roh was out of hand. Instead, Roh tried to play the case in the media -- and hyped up the feelings of the people in a nationalistic frenzy. Things got so heated that people burned themselves to death and a mother and son chopped their fingers off. The hysteria was pumped up over the middle school history book in Japan that "distorted" history -- but it hadn't even been accepted by the schools yet. Later Koreans were also angered last year when the Japanese authorities approved a new line of schoolbooks asserting Japan's sovereign claim to the rocky islets. Then the visits of Koizumi to the Yasukuni shrine became the next sore point in both Korean and Chinese affairs. Politicians flocked to have their pictures taken on the rock -- and long-distance swimmers swam to the island from the mainland. Moves were taken for tours to be made to the island. In all, 2005 which was supposed to be the "Friendship Year with Japan" turned into a year of national hatred fostered by a President out to divert attention away from his failed programs.

In 2006, the Tokdo cries continue starting with the symbolic overfly by the USAF chief of staff in a F-15K accompanied by F-16s in Jan 2006. Despite strong protests in Feb 2006, Japan's Shimane Prefecture said it would push ahead with celebrations of the country's claim to a set of Korean islets. The Shimane Prefecture government was to mark the first Takeshima Day on 22 Feb 2006 after the local assembly passed a bill last year authorizing the celebration. Takeshima is the Japanese name for the Dokdo islands. Korea has demanded that Shimane Prefecture retract the designation of the day and cancel any commemorative events, but the prefecture will proceed as planned.


Kim Sung-do, who moved into Dokdo with his wife on 19 Feb 2006, examines his 1.3-ton-boat at a port in Ullung-do before sailing it to his new home hours later. (19 Feb 2006)

On 20 Feb it was announced two of the three Koreans who are registered residents of Dokdo islet, Kim Seong-do and Kim Shin-yeol, moved back home after 10 years. The couple moved to the islet in 1991 and left the islet in 1996 after their house collapsed in a storm and the dock became non-functional. The couple have been living on a neighboring island, Ullung-do, ever since. With its political tension with Japan over Dokdo escalating, the Ministry of Maritime Affaires and Fisheries spent 1.7 billion won ($1.75 million) to build a four-room house and repair the port facilities to lure civilian residents to the islets. The Maritime Ministry has "repaired" the couple's home, and private groups raised funds to buy a new fishing boat for them. The couple will soon have a neighbor in Pyung Bu-kyung, a 55-year-old poet, who plans to move to Dokdo sometime in April. (NOTE: These "residents" are "political pawns" as the ROK allowed people to register as residents to attempt to support their sovereignty case. As far as we know, prior to the 1990s, there were only fishing huts used for temporary shelter by fisherman, but no regular residents because of the lack of fresh water. The outpost is guarded by a lighthouse manned by maritime police and equipped with a helipad. Concrete docks were constructed after the old docks fell into disrepair in the late 1990s.)

Father and Son Purchase Tokdo Stamp (17 Jan 2004) (NOTE: Korea printed a stamp of Tokdo -- but denounced the Japanese when they did the same. (NOTE: The South was silent when the North Koreans did the same for a Tokdo stamp, but very vocal when the Japanese prefecture issued a Tokdo stamp.)

The fact that Roh tried unsuccessfully in 2005 to remove the "outlawed" status of the Hanchongnyeon, the National Federation of Student Councils, one of the most violent anti-American groups speaks loudly of his position. (NOTE: In 1997, the ROK Supreme Court ruled that Hanchongnyeon was an "enemy-benefiting group" and an anti-State organization under articles of the National Security Law (NSL). The group's reform was part of the unsuccessful push to eliminate the NSL.) This group was responsible for the violent attack on Camp Humphreys in Jul 2005. On the second point of the "Uri Party controlled National Assembly" has changed. The Uri Party no longer has a majority after election violations or convictions caused the party to lose many seats -- and in by-elections never recovered them. In the Apr 2005 by-elections, the Uri Party received NO seats -- a public humiliation of the party and Roh.)

The troops to Iraq promised in June were still awaiting movement to Iraq in August 2004 -- though everyone has thanked them for their "support." What makes this whole move ridiculous is that the 3,600 troops of the 2d Bde 2d ID was notified AFTER the ROK approved their 3,600 troops for Iraq in MARCH 2003 ... and then went into denial and stalls. Only a blind idiot cannot see that the US pulled out their troops because the ROK was not a reliable ally. And they moved a brigade with more than 1,800 vehicles out in less than two months...while the ROK is still fumbling. (See Relocation of USFK (2004).)

(SITE NOTE: The 2d Bde 2d ID departed Korea -- and did not return to Korea. The ROK Zaytun unit did not go to Iraq until Dec 2004 after much hassling to be in a "safe" location in the Kurdish held territory at Irbil. While over 2000 American troops have been killed, not one ROK has been injured or killed. The only person hurt was when a ROK soldier accidentally killed an Iraqi soldier with his K-2 rifle. In 2005, the passed legislation to reduce its troops by about 1000, though it did extend them for a year. However, the point has been made to the ROK that the US is capable of relocating out of Korea in a VERY short time -- if it so desires.

Currently in 2006 the units from Yongsan were supposed to start the relocation process to Osan AB and Camp Humphreys, but the ROK still has not procured all the land. The foot-dragging continues, though the ROK is making lots of PR noise. But the USFK has also started to downsize to "units of action" (UA) and reposition units to Pyeongtaek -- and switching its rear echelon units to Camp Stanley and Red Cloud. There is a lot of behind the scenes actions that are taking place to relocate the US troops off the DMZ in a very low-key manner.)

Roh who was swept into office on his America Go Home plank, is now asking the US to delay its timetable for troop reductions. However, it is probably too late. They have stalled and "renegotiated" at every turn to the point that the U.S. does not believe that they will negotiate in good faith. The ROK continues with its rapprochement stance and has gone into face-to-face negotiations on Kaesong over the export of certain prohibited technologies.

(SITE NOTE: Currently the topic of pollution of the camps being returned under the 2001 Land Partnership Plan is a stall by the ROK to try to keep the USFK on the DMZ. However, this will most likely NOT work as the LPP is a separate topic from the relocation. The camp can be empty and the relocation can still take place. The US stated that the ROK is using a different standard than what was agreed upon in the SOFA negotiations on the topic. It is a legal matter at this time.

However, on the topic of cost-sharing for the relocation, the ROK is backed against a wall. If it does NOT provide funding for the relocation as agreed upon, then it will have reneged on an binding agreement. As to the additional $500 million to be used as fill for the area near the Anseong River, that is another story. This "requirement" was surfaced in 2004 and the ROK refuses to consider the matter. This will be a long and dragged out process.

On the topic of technology transfer, there was a great stall by the US over the use of telecom switch units using American technology in a "terrorist" nation. Finally in Dec 2005, it was approved for use at Kaesong -- though it seemed curious that Korea Telecom immediately started talking of providing service to ALL of North Korea -- and later it again stated that Kaesong would be the central hub, but what about the other nodes??? Another curious fact is that the US approved the purchase of an Unmanned Air Vehicle (UAV) for Japan in 2005, but refused the request from the South Koreans. In 2005, the Koreans attempted to switch bids on its AWACS aircraft buy from the US to Israel, only to discover that the US had the communication patents on the radio gear...and was not going to open the door on them.)

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Roh Moo-hyun: A Left-leaning President

(See Roh Moo-hyun Profile from Cheong Wa Dae site.)

In early 2002 -- prior to Roh's election -- most conservatives viewed Roh as an anti-American radical leftist. However, after he won the election in December 2002, he was viewed only as a liberal reformist as Roh sought to change his image away from being a rabid anti-American. After he took office in Feb 2003, he started to project the Presidential image speaking of partnership and alliance with the USFK, but still mouthing anti-American sentiments to his supporter base groups. He portrayed himself as a defender of Korea forced to bend to the will of the U.S. to prevent a war on the peninsula. Then in May 2003 after the US-Korea summit, Roh sought to reinvent himself again as a political realist who sided with the U.S. stance -- simply because there was no other choice. Each of these stances had consequences. The first started the anti-Korea backlash. The second upset the governmental structures in an attempt to "reform" them in the left-leaning liberal mold. The third cast him in a position of a untrustworthy politician who talked out of both sides of his mouth. The fourth may cost him dearly with his primary support group of the college students and youth groups who viewed him as selling out to America.

In 2002 as Roh Moo-hyun campaigned for office, there were claims that he was anti-American -- especially from his campaign rhetoric to gain the presidency. The violent anti-Americanism was being backed by the "386" generation -- those from the March 86 "democracy" movement -- in the 20-40 age group...and he played up to this group. At one point during his campaign, Roh actually boasted with pride about never having visited the United States, implying that Koreans who had done so were somehow less patriotic. Roh was viewed as a radical leftist leader with a definite anti-American bent. Following a U.S. military vehicle accident in May 2002 that resulted in the deaths of two Korean school girls, Roh took every opportunity to capitalize on the xenophobia and hatred focused on the U.S.

Owen Rathbone wrote in the American Daily.com: "He also raised eyebrows by stating that in the event of a conflict between the U.S. and North Korea he would not get involved except to "mediate" between the two warring parties — despite the fact that the U.S. would come to his country's aid in the event of a crisis with the North. Roh also hinted at the possible withdrawal of American forces from Korea. Above all, he promised he would not "kowtow" to Washington, but rather put the U.S. and South Korea on an "equal footing."

However, in all fairness, every politician did the same thing by jumping on the bandwagon as the fashionable thing to do. Anti-Americanism was out of hand and Roh rode into office on its coat tails. Only after the students started into more fire bombings and violent attacks on USFK servicemen did President Kim Dae-jung break his silence on the anti-Americanism and come out against the violence that he had allowed to proceed unchecked.

In a 24 Dec, 2002 article in the International Herald Tribune, "In the campaign, Roh hinted that South Korea would remain neutral if war broke out between the United States and North Korea. Is he so confident of Chinese strategic protection that he believes he can discard the U.S. alliance? If so, the tangle of great power interests on the Korean Peninsula is about to undergo a profound shift. The election outcome means that South Korea is set for another five years of appeasement of North Korea, even though North Korea behaves ever more outrageously. Pyongyang has admitted to a clandestine nuclear enrichment program, has threatened to end its self-imposed moratorium on missile testing, and has threatened to resume plutonium production at its Yongbyon plant. South Korea's appeasement policy has also served the interests of the North by stirring up anti-U.S. nationalism in South Korea."

Before the election, Roh positioned himself on a head-on collision with the U.S. (See Roh Moo-Hyun President Elect & Road to Confrontation Set:.) Even after he was elected then President-elect Roh was generally considered by many Americans as a radical reformist with a strong tendency toward anti-Americanism, Roh was urged to try to do something about the anti-American situation in Korea. However, he knew well from where his support sprang from and was cautious in not alienating the 20-40 age group which are at the core of the anti-American movement. Public warnings against anti-Americanism in Korea was gaining momentum, especially in the media circles.

Roh Election Victory (19 Dec 2002)

Once elected Roh told the NGO groups to be quiet because there was a growing economic backlash from the anti-Americanism. On December 31-Jan 1, tens of thousands sang "F _ _king USA" and shouted "Yankee Go Home," but the next day suddenly there was no anti-Americanism reported. Did anti-Americanism disappear? No, it was alive and well...just muffled -- and also the winter is not a good time for protests. However, Roh also turned around and told the Seoul Police not to harass the protestors.

Anti-US Seoul Protest (31 Dec 2002)

Worried about his potential anti-American image, Roh started to say nice things about the USFK talking about the "alliance." Unfortunately, his remarks to other Korean groups, he voiced his real agenda to gain control of the USFK and portrayed the U.S. as a "necessary evil." Basically he viewed the U.S. military relationship with Korea as horizontal -- with the U.S. on top. He publicly voiced his opinion that the relationship should be vertical -- as equals. However, it is hard for the U.S. to stomach a vertical relationship as it spends $20 billion on Korean defense along with providing all the high-tech weaponry (i.e., Patriot missiles, Aegis destroyers, tomahawk cruise missiles) to the mix.

Roh Inauguration

Through out the initial days of his Presidency, the world press questioned whether he was anti-American. His image of his being anti-American was cemented by his interviews with a British magazine and then with Newsweek Magazine. Roh's vision of where Korea should head was not in the best political interests of the U.S. is the kindest remark that could be said.

There was growing concern that his political stance put him on a collision course with America. To offset this image, he sent a special envoy to Washington from his transition team who made the unfortunate gaffe of saying to a number of senior U.S. officials that given the choice between North Korea collapsing and its possessing nuclear weapons, the South prefers the latter. People shook their heads and started to say that the Roh administration might be starting with diplomacy by amateurs. This seemed to set the tone for his administration of a group of reformist amateurs with all the good intentions to change Korea to their vision.

Roh Moo-hyun (Dec 2002)

Reformist Policy: President Roh is a reformist -- that is not in doubt. In Feb 2003, his cabinet was made up of reformists breaking all the rules of seniority or qualifications or experience. The majority of his group were in their 40s-50s with the oldest being his Premier Goh at 65. The Ministers seemed to be selected on their espoused vision of how to change the institutions -- without regard to any real experience in government or high-level leadership positions. For example, he appointed a popular movie director as the head of the Ministry of Tourism and Culture.

Following his successful election on Dec. 19, 2002 as the next President of Korea, he declared an ambitious 10-point government policy vision as head of the new government to be formed. They consisted of the following:

1. A nation divided cannot stand. Korea must initiate a new era of regional reconciliation and national unity. (SITE NOTE: The reunification of Korea is priority-one with the continuation of the Sunshine Policy. As to regionalism, there were early signs of discontent from the South Cholla area that gave him 98 percent of their vote in the Presidential election, but did not receive their "fair share" of political appointments.)

2. We must advance our nation with key emphasis on fair principles and justice. (SITE NOTE: The reforms he had in mind was to gut the NIS and National Security Law, bring the Ministry of Justice prosecutor office to heel under the thumb of the President; and foster chaebol reforms in favor of the unions. As to the U.S. military presence, this meant restructuring the relationship with America from a vertical relationship (big brother) to a horizontal one (equals). Unfortunately, the U.S. is going to restructure the relationship in the form of "my way" or "no way." The outdated cold war positioning of forces in Korea is about to come to an end.)

3. Korea must play a leadership role in the reshaping of the Northeast Asian order and take a new leap higher in the world arena. (SITE NOTE: The first attempt was the failed intermediary mission to North Korea. This bold approach unfortunately has not received the welcome response anticipated from its neighbors. Instead Korea has shifted its emphasis to making Korea a internet business hub of the future. Unfortunately, most investors have shunned Korea. The Korean government talks about Korea as a "business hub of Northeast Asia," but after dealing with Korean bureaucrats, foreign investors generally concur that civil servants here are in dire need of an attitude adjustment.)

4. We must nurture our society to be a sound healthy economy, with plentiful job opportunities, and where hard-working people can enjoy economic well-being. (SITE NOTE: His first acts appeared to be conciliatory actions to the union demands in the national railway strike and soon followed by the trucker strike. More were expected to follow and hospitals and health services.)

5. All citizens are entitled to their constitutional rights to pursue happiness and have their fundamental human rights protected. We must create a society with a warm heart. (SITE NOTE: Roh seems to head his reforms to rid itself of the National Intelligence Service; free dissident activists from prison (including North Korean spies and student activists); and gut the National Security Act. In his reforms, Roh sought to pardon the North-Korean supporters of Hanchongnyeon student union.)

6. We must encourage a national culture that boosts its people's pride, a well-educated nation where all reach their full potential, and a Korea all wish for their descendants to inherit. (SITE NOTE: The Ministry of Education NEIS plan to standardize national education has faced strong opposition from teachers' unions nationwide.)

7. Digitalization and the IT revolution are can't-miss opportunities for Korea. We must harness these tools to become a global benchmark and digital powerhouse accessible to all. (SITE NOTE: Roh knows the importance of this element as it by most accounts is what assured him his election. In March 2002, Roh set out his vision to make Korea number one in computer linkages and to turn Korea into a internet business hub.)

8. We must continue political reform that returns politics to the people, the National Assembly to the lawmakers, and the party to the party members. (SITE NOTE: By May 2003, the honeymoon was over. The majority opposition was vowing to make his life hell and young rebels in his ruling party was setting up the formation of a new party. In July 2003, the idea of a new party collapsed as the reality set in that they could never win the elections in 2004.)

9. An approachable President and humbled power will make Korea strong. Revive the concept of accountability in the posts of Prime Minister and Ministers as stated in the constitution. Realize an administration that caters to the specific and broader needs of the people. (SITE NOTE: This is Roh's vision of a "participatory government." Roh has started his style of town meetings to make himself appear more accessible to the people. He knows the value of the internet and has actively promoted it as the medium of the future. He started a bulletin board on the Blue House website, but soon delegated the responsibility for fielding the questions to the separate miinistries. Roh prefers the television medium and has openly debated rebellious prosecutors -- and in May 2003 sat down for a televised question and answer show from a panel of journalists. The response has been positive to his approach. The pattern was obvious -- Roh would make a statement and he then would blame it on a misinterpretation by his Blue House spokesperson. He fired the first, then in June 2003 Roh Moo-hyun said that he had indicated to Japan's Prime Minister Junichiro Koizumi that the ROK would REJECT any other course than dialogue in the North Korean nuclear crisis. "During my visit to Japan, I conveyed a strong intention that we exclude use of force and other means that heighten uncertainty, and that we use dialogue to resolve the North Korean nuclear crisis," Roh told Blue House secretaries and aides, according to Yoon Tai-young, the Blue House spokesman. Yoon later said Roh's statement was "misinterpreted" because he spoke so fast. A more famous gaffe came during the Iraq War when Roh went to the National Assembly to tell them he was "forced" to send the troops in order to protect Korea...meaning the U.S. strong-armed him. They rewrote the text three times before they had the innocuous version now on the Blue House archives. )

10. Reforms must succeed. Failed reforms cannot be called reforms. Our leadership will systemize open participation and dialogue. (SITE NOTE: This will be the biggest challenge as he is taking on the chaebols, the government bureaucracy and entrenched conservatives. He is attacking the established power structure.)

Former President's at Roh Inauguration

Roh Starts His Term in Office with a Lead Foot

Alienates Career Bureaucrats: Roh alienated a large group of career bureaucrats by overruling the promotion system. He appointed a woman to the Ministry of Justice and immediately the prosecutors attacked back and Roh had a televised public debate with the junior prosecutors to defuse the matter. Roh won as he placed his sympathizers in key positions in the prosecutors office -- most obvious being the key Seoul prosecutor's office. However, the expected resignations of senior officials were not forthcoming -- as they simply took the position to bide their time.

Then he announced that he was going to grant amnesty to the radical students and North Korean spies jailed under the National Security Law. This alienated the National Police which has battled these groups on the streets for thirty years. Suddenly the outlawed student union was ok because it wanted to reform its organization, though the law nor indictment had not been rescinded. The Supreme Court reconfirmed Hanchongnyeon, the association of college student councils, was an organization benefiting the interests of South Korea's enemy, North Korea, although the illegal organization recently made efforts to soften its radical stance with the launch of the Roh Moo-hyun administration. Following this lead, a Seoul court convicted the 2002 Hanchongnyeon acting President to 18 months in jail. These troubles with radical student group issues would crop up when a former student activist who was on the wanted list by the NIS was discovered working on Roh's transition team in Jan 2003. Despite this fact, the Roh administration has continued to support the Hanchongnyeon legalization -- even after elements broke into a USFK Firing Range near the DMZ and vandalized the Corps of Engineers buildings in Seoul in August 2003. The police are starting their investigation into the radical student organization and arrests were being made in August 2003.

Roh's alienation of the Prosecution office is shown by the fact that the prosecution quickly took over the Kim Dae-jung pay-for-summit case after the mandate of the independent counsel lapsed. The scandal is a major thorn in the MDP's side. In addition, it was revealed that the video tape of one of Roh's aides being wined and dined was taken by someone from the Prosecutor's office -- then released to the press to embarass him.

The alienation of career bureaucrats continued as more and more saw that the reformist agenda was taking Korea on an uncomfortable course. Early on, Roh attempted to gag his administration from talking to the press stating that "anonymous sources" would not be allowed and that all information had to be attributed to the source. "Anonymous sources" died out for a while, but soon resurfaced in most of the major newspapers. Most of the "leaks" came from the Ministry of Justice in identifying high-profile advisors to Roh. (See Political Scandal)

On 12 Jan 2004, President Roh Moo-Hyun's office launched an investigation of foreign ministry officials accused of criticising his foreign policy agenda. According to NAPSNET, "An investigation is under way into the allegations that some foreign ministry officials made inappropriate and intolerable remarks and leaked information about their business to the media in an inappropriate manner," Roh's spokesman Yoon Tai-Young said. An official at the ministry said Foreign Minister Yoon Young-Kwan had convened a meeting of top officials. "The atmosphere is grim," he said. "The term 'investigation' is unfortunate. We are not criminals." The investigation reflects a rift between top bureaucrats in charge of policy towards the US at the foreign ministry and key advisors to Roh, according to media reports. A group of advisors led by DPRK expert Lee Jong-Seok, number two on the National Security Council, are known to ministry officials as the "Taliban," after the fundamentalist Islamic group which sheltered Osama bin Laden in Afghanistan prior to their overthrow by US-led forces in 2001, the reports said.

Roh use of "frank expressions" of distrust of the Foreign Ministry's American policy line indicated mass personnel shakeups at the ministry's North American desk were expected. Minister of Foreign Affairs and Trade Yoon Young-kwan resigned a day later on 15 Jan. Yoon Young-Kwan was replaced by Roh's foreign policy adviser Ban Ki Moon. According to the Choson Ilbo on 15 Jan, "Discussing policy toward the United States, the President said that from time to time, there were leaks of information aiming to change his foreign policy, and after policies had been decided, there were leaks designed to influence the details of those policies. He called attention to this several times, he said, and requested that officials follow his directions, but a few people objected and went as far as making insulting remarks. The information leaks Roh spoke of appear to refer to the prior reports in the media of the government's position on the six-party talks, Iraq, the Yongsan Garrison move, and other issues. For the President to say this in a room where even foreign correspondents were sitting leads some observers to predict that full-scale changes in the system by which American policy is reached will take place."

Chung Chan-yong, senior secretary for civil affairs at Cheong Wa Dae, stated, "A certain few individuals at the foreign ministry have been unable to grow beyond the dependent foreign policy of the past. They have been unable to adequately carry out the independent foreign policies of the Participatory Government. These individuals repeatedly spoke in a manner that is outdated in public and private contexts, leaked sensitive information, and in doing so caused confusion in foreign policy. Then, in the course of an inquiry, information about the inquiry itself was leaked, a willing upset of official discipline." Top diplomats abroad were also axed amid the public row over foreign policy and relations with the US.

On 30 Jan 2004, it was reported that President Roh had replaced his top defense and national security advisors in a cabinet shake-up. The former deputy head of the National Intelligence Service, Kwon Chin-Ho, took over from Ra Jong-Yil as national security advisor and Yoon Kwang-Ung, a retired admiral, succeeded Kim Hee-Sang as adviser for national defense. Some analysts linked the new shake-up to an effort to reduce pro-US influence in Roh's inner circle. Kwon, a 63-year-old retired three-star army general, is an expert in security and international affairs. He was in charge of security during the 2002 football World Cup co-hosted by the ROK and Japan.

Continuing Education Problems over NEIS: The Ministry of Education and Human Resources' (MOE) has always been a thorn to previous administrations. His is no different. The ministry continues to be embroiled in controversy with the teachers union posting anti-American lesson plans on the internet and a principal committing suicide over pressure from the union. The progressive Korea Teachers' and Educational Workers' Union (KTU), or Jeongyojo, provided downloadable anti-war lesson plans; provided photographs for class use of the mangled bodies of the two schoolgirls killed in the armored vehicle accident; provided materials claiming the U.S. was responsible for keeping Korea divided. Roh promised to look into the matter, but then backed down, claiming that the lessons were not as offensive as claimed. In truth, Roh did not want to alienate the KTEWU as a political power base. Counter claims of the unions abuses in the suicide of the principal again was swept under the carpet.

There is a major controversy of an National Education Information System (NEIS) that the Ministry of Education has injected 52.1 billion won to implement the NEIS early this year. In May 2003 the government agreed to re-examine the planned introduction of the NEIS as an integrated Internet database of school information amid a controversy that the envisaged system might violate human rights. A state human rights panel recommended the Education Ministry scrap three key parts of the NEIS - students' medical history, their individual records on school entrance and school affairs. At the center of the conflict is a choice between a promise of enhanced convenience in information sharing and a perceived potential risk to privacy. The convenience in accessibility of information was claimed to result in 1.4 trillion won savings during the next five years.

The recommendations of the human rights commission caused numerous problems in educations circles as many schools had already scrapped the present "client-server" (CS) system, believing that they would be equipped with a new NEIS system. Under the CS system, a larger, faster personal computer called "server or workstation" controls smaller, slower desktop computers. The left-wing KTU warned that if the government pushed forward with the NEIS its 90,000 members would wage protest activities, such as taking coinciding sick days or boycotting the new system. On May 28, 2003 the KTU decided to schedule a "collective annual leave" -- effectively a strike. If the union had made good on its threat, the most immediate effect would be impaired operations for this year's university entrance exams, which the system handled. By contrast, the larger and more moderate union, the Korean Federation of Teachers Associations, which has 170,000 members, said that if the government returned to the old CS information system it would boycott it or possibly strike as well. (See KTU for Hangul homepage.)

As is becoming typical of the Roh administration, the Minister of Education contributed to the mess with his waffling on his position. Shortly after he assumed his post in March 2002, he claimed there were problems with NEIS and that he would suspend it for improvement. Several days later, he stated the problems were not so serious and it would proceed. When the human rights commission issued its recommendation, he said he would respect it, then he hinted that he might rule against it.

In the end, the ministry reversed its position to implement the system by force if necessary and accepted the KTU's position that the NEIS be canceled and the former CS system be used for the three sections in question. The system would be implemented for graduating seniors, but those below the 11th grade would be "temporarily" placed under the old CS system until February 2004.

In response, the moderate Korea Union of Teaching and Education Workers (KUTE), Council of Local Education Commissions and several parent organizations called for the resignation of Minister of Education Yoon Deok-hong. In addition, the Workers Council at the ministry is also balking at the decision in a rare move that publicly denounced the "unilateral" decision as "self-serving." The education superintendents, education committee members, school principals, information system teachers, the KUTE and the Korea Federation of Teachers Associations (KFTA), are now vehemently opposed to the decision.

Then Minister Yoon waffled again and said that the announcement was falsely conveyed, and that the new system would not be scrapped but would be reconsidered over the next six months. This kind of response is typical of the Roh administration that when they get in trouble they state they were misquoted or misunderstood.

The Education Minister flip-flopped again and announced it would allow schools to operate the NEIS, despite progressive KTU teachers' threat to boycott classes in protest against the system. Under the guidelines, schools are required to keep the data manually in principle pending a final decision on the new system by an expert committee to be launched this month. In response, the KTU said they would take a collective leave on June 20, 2003. The Education Ministry stated that "the collective leave" would be considered a strike. The KTU is not allowed to strike under prevailing law. The Education Ministry said that those who participated in the protest would be subject to warnings, reprimands, and reduction of wages -- though the degree of punishment would be decided by heads of municipal and provincial offices.

The Seoul courts reacted quickly to set an example and sentenced six former KTU officials to prison over a 2001 incident -- though with a two-year stay of execution in the sentences it amounts to nothing more than a symbolic action. The court ruled that if students' rights for studying and learning were violated by teachers' collective move to take leave, that constituted the obstruction of the school administration.

According to the Korea Herald, "Of the 27 NEIS fields, only these three contain students' personal records on their health, grades and school entrance and transfers. Human rights advocates argued the three parts should be scrapped as they might violate students' human rights and privacy. In contrast, NEIS proponents say without these three elements, it is "meaningless" to adopt an NEIS that is aimed at integrating information from all primary, middle and high schools and making them available at students' homes. The conservative Korean Federation of Teachers' Association said they would not revert to the previous "client-server" system, saying 97 percent of 10,950 schools across the nation have already begun using the NEIS. They noted the "complete" return to the CS system could potentially cost the Education Ministry up to 2.2 trillion won, adding the government has already injected 52.1 billion won to the establishment of the new network system."

Attacks on the "Gangster" Press: He then attacked the "gangster press" -- the big-three newspapers: Chosun Ilbo, JoongAng Ilbo and Donga Ilbo. Roh's first action was reforming the press system at Cheong Wa Dae (Blue House) to eliminate the White House-style press corps and substitute a daily briefing system. Officials were told that they would not grant interviews unless authorized and that newspapers must cite their sources for quoted material from officials. These measures were aimed directly at big three conservative newspapers which voice opposition to Roh's programs.

From September 2003, journalists from foreign news organizations, Internet-only newspapers and other non-conventional media firms will be able to attend press briefings provided by six government ministries and agencies located at the Central Government Complex building in central Seoul. To date, those government offices had been providing briefings only to each ministry's press corps, which mostly consists of major Seoul-based news organizations.

The FTC has launched investigations against the three newspapers. In the mean time, the Roh support group (Nosamo) showed up in front of the Independence Hall Museum with a crane to yank out the press donated by the Chosun Ilbo as an exhibit of the olden days press in Korea. Intimidated, the museum removed the display.

In March 2003 Roh then appointed a reformist to the KBS (nationalized TV station), but the union refused to let his appointee enter the office. His appointee resigned and a new appointee, Jeong Youn-ju, took office. Unfortunately, his only credentials were that he was the head editorial writer for the Hankyoreh, a liberal news source that is currently Roh Moo-hyun PR newspaper source that is also in the feud with the conservative Choson-Ilbo. Roh is stacking the government-controlled news agencies with HIS reform-minded men and attempting to muzzle the conservative newspapers with veiled threats of tax investigations. On 12 Jul 2003, the Chosun Ilbo published an article about the politically-biased KBS programs that appeal only to the Roh supporter viewpoints -- alienating the other half of the viewers.

New Shows at KBS Called Biased

by Eo Su-ung (jan10@chosun.com)

The so-called "reform programs" promoted by the new president of the state-funded TV network KBS, Jeong Youn-ju, are being attacked by critics, who say the shows are politically biased.

Jeong recently introduced a group of new programs, three of which are especially controversial: "Modern History Through Biography," "Media Focus" and "Citizens Project - Please Come Out."

"Modern History Through Biography" was slammed by the opposition party even before its first episode, because its host, the actor Moon Sung-geun, is a fervent supporter of President Roh Moo-hyun.

The first three episodes of "Modern History Through Biography" featured the mother of Lee Han-yol, a student demonstrator who died after being hit in the head by a tear gas shell in June 1987; Jeon Tae-il, a labor activist who burned himself to death to protest the government's failure to enforce labor laws; and Yun Sang-won, the Citizens Army spokesman during the Gwangju uprising who was shot to death by the military.

A professor at Kookmin University, Lee Chang-hyun, pointed out that the selections have been considerably political so far, as Lee, Jeon and Yun represent the democratic campaign against Chun Doo-hwan's military regime in the late 1980s, labor suppression in the 1970s and the 1980 Gwangju uprising.

Because public channels should appeal to all citizens regardless of their ideological stances, such biased programming is inappropriate, Lee said. KBS needs to serve as the pivotal point that includes a wide spectrum of various ideologies, he said. Critical viewers have written KBS's Internet bulletin board that the Roh Moo-hyun government seems to want to justify its legitimacy by exploiting the names of the activists who sacrificed themselves for democratization.

"Media Focus" debuted with a confessional by KBS in which it repented of past sins and promised to reform. A KBS executive pointed out that reporters in the 1980s were forced to write pro-government stories. The episode got mixed reactions. While some appreciated KBS' will to reform, others pointed out that the self-reproaches were limited to the past. Others said it lacked objective standards and was created from a certain political perspective.

"Citizens Project - Please Come Out," which debuted by sending a TV van to former President Chun Doo-hwan's residence and demanding that he appear on the live show, has been attacked for dealing with serious issues by embarrassing the concerned parties.

A professor at Hanyang University, Kang Nam-jun, said that the second episode dealt with day-to-day issues such as credit cards and sanitary napkins, and observers say the producers used the first episode to promote the program by making it a sensational event.

A professor at Sookmyung University, Park Chun-il, said that if a public broadcasting agency focuses on disclosure programs or enlightenment campaign programs, the entire nation could lose its center of gravity. The media needs to propose an agenda indirectly through stories and reports, not in a direct manner, he said.

At MBC, another public TV station, a documentary program, "PD Notes," had an episode called "Korean Newspapers: the Power above the Power" on July 8, 2003. The show limited its criticism of newspapers to Chosun Ilbo, JoongAng Ilbo and Donga Ilbo, and reiterated the anti-Chosun rhetoric from the Kim Dae-jung Administration by interviewing government officials and former journalists.

Professor Kang Hyung-chul of Sookmyung University says that the public broadcasting stations are pandering to the views of only half the voters - those who supported Roh Moo-hyun in the presidential election - and will alienate the other half in the long run. Pointing out that the British Broadcasting Corporation begins its programming by saying that it has no political policy, Korea's public television networks do not need to editorialize.

On 2 Apr 2003 President Roh said, "A few newspaper companies run by clans have relentlessly assailed former President Kim Dae-jung's administration. I have been attacked in the process, the fallout of which is indescribable. The pain is still continuiing." He vowed to take criminal and civil action against "incorrect" reporting.

According to the Joongang Ilbo, "Mr. Roh then abolished the existing press rooms at government ministries, barred journalists from visiting government officials during working hours, and cancelled subscriptions to early-edition newpapers, whose articles had been published the night before. In the past, government officials would call newspaper editors to request them to drop unfavorable articles from later editions. He then issued an order to officials to divide newspaper articles into four categories. They included a "malicious criticism" category, and Mr. Roh urged the government to take action on articles in that group."

On Newspaper Day, 7 April 2003 Roh said, "Neither the government nor the press can win by testing who is more powerful... I propose that we shake off bygones, and propose cooperation and reconciliation." But the press felt that this was a one-sided response as there was no conciliatory stance toward the press on the part of the Blue House.

On 28 May, 2003 the members of the Korea Newspaper Fair Competition Committee issued a statement saying that government intervention into the newspaper market had become institutionalized, making the committee's role meaningless. As a result, they said, they decided to resign en masse, expressing deep regret for the "hastiness and unreasonableness" the government exhibited in the process of revising the code.

On 20 Jun 2003, According to the Chosun Ilbo, "the deputy director at the Government Information Agency, Cheong Sun-kyun, who used to be a reporter at the JoongAng Ilbo, harshly attacked the Chosun Ilbo, JoongAng Ilbo and Dong-a Ilbo during a speech Saturday to 30 high-ranking officials of the Supreme Public Prosecutors Office. Cheong said that the domestic media market was almost monopolized by the three newspapers. These newspapers report news in the same way, and thereby fix public opinion, preventing the formation of normal public opinion, he said. He took issue with the Chosun Ilbo's critical editorials about Roh Moo-hyun's recent visit to Japan, saying that the paper hastily presumed that the summit in Tokyo was a failure. He also complained that all three newspapers had reported a claim by the opposition lawmaker Kang Seong-ku, who said that fools always blame the media, and called the quote and subsequent reporting "coordinated." "This is evidence that whenever they find a story that fits their ideas they all carry it, as if uniformly," he said."

The government has adopted a new standard for reporting. The first was that there would be no more "anonymous sources" and such articles using such unidentified sources would be subject to legal action. This smacked of intrusions on freedom of speech. It also implemented five classifications for article-grading. On 13 Jul 2003 the Chosun Ilbo reported, "The Seoul District Civil Court on Friday ruled against 11 prosecutors from its office in their slander suit against the Chosun Ilbo. The prosecutors, who were asking for W1.1 billion ($930,000) in damages, had taken issue with a September 2001 article in which the Chosun Ilbo said prosecutors were skirting legal requirements when tracing bank accounts, such as by going through the Financial Supervisory Service. The court said in its ruling that the media should be granted latitude when reporting about violations by prosecutors because prosecutors, when conducting their investigations and releasing their conclusions, have enormous influence on the private lives and human rights of the people involved. The court concluded that the Chosun Ilbo's report, which was based on fact, appeared to have no malicious intent, and amounted to appropriate criticism from the media. The court also said that it agreed that prosecutors, by tracing accounts with the help of supervisory body, were dodging the requirement to get a warrant, which is called for by several laws." This is an extension of the Roh policy to sue newspapers/magazines that the administration feels has filed a erroneous report. These allegations have been made by the newspaper against the Prosecutors' investigations up to the present day in many high profile cases such as the SK Global scandal investigation.

In July 2003 Roh was very thin-skinned, especially since some foreign press releases and magazines have printed articles unflattering to his administration and classified as "malicious" by the Roh article-grading system. For example, after the 14 July 2003 edition of Newsweek hit newsstands with a story called "Is Korea Socialist?" the Roh administration protested -- demanding a retraction and apology. The article took aim at the Roh Moo-hyun government's labor policies, but also used the world "socialism" to describe the Roh Korea. The person quoted by Newsweek as saying, "Now Koreans are saying that Korea is more socialist than China," was reportedly the Chinese ambassador to Korea, Lee Bin. However, the Roh government can't do much except grin and bear it as they could not question a diplomat without causing a international hubbub. The Roh government demanded an apology and retraction from Newsweek, but none was immediately forthcoming.

In August 2003 Roh was under constant attack and vowed to take his fight against the three major conservative newspapers to court. On 2 Aug 2003 Roh said the media was abusing their power "to trample [on the government], trample again when you protest, try to dig up dirt on your family, try to nail you." In frustration, he even stated that he might create his own internet newspaper to get his side of the story out. On 2 Aug 2003 the Information Service stated that the government might take action against editorials and columns "if the opinion pieces carry false facts." The Blue House was contemplating setting up a specific organization to file suits against press companies, without going through the usual procedure of bringing its complaints before the Press Arbitration Committee first. The Fair Trade Commission launched a study into free gifts and promotional copies distributed, illegally, by newspaper companies. Roh dismissed the rancor as part of a shifting change to a relationship between the government and the press. But members of the opposition and media scholars worry that it may lead to oppression of the press.

On 13 Aug 2003 he filed a libel suit against an opposition party lawmaker and four major Korean newspapers "a suit that was unprecedented for an incumbent president." He filed a libel suit against Representative Kim Moon-soo, an opposition party lawmaker who had raised rumors of Roh Geon-pyeong, the president's elder brother, being involved in property speculation. Mr. Roh sued the nation's four major dailies the Chosun, Dong-a, JoongAng and Hankook (Korea Times) Ilbos for libel for reporting on the claim without examining it closely. However, on 27 Sep 2003 President Roh requested the Seoul District Court temporarily suspend procedures for a lawsuit he filed last month against four domestic newspapers and an opposition party legislator until he left office in Feb 2008. Supposedly the plaintiff's status as a sitting president might trouble the court and trigger further political debate on the issue.

When the Asian Wall Street Journal published an editorial on criticizing President Roh Moo-hyun for filing a lawsuit against the four major press companies (the "gangster press"), the Korean Information Service (KIS) told Jeong Soon-gyu, deputy chief of the KIS, to write the article, "Standing Up to the Press in Korea." Jeong defended the action as necessary to "rectify these wrong practices as well as establish a new wholesome relationship between the government and the press." The response was printed in the ASWJ on 21 Aug 2003 and immediately roused controversy, as its contents seemed to defame all Korean reporters -- though Jeong claimed it was a mistake in translating the article. It stated that government officials "have maintained a select group of supposedly influential reporters at each government agency, wined and dined them, and regularly handed them envelopes of cash." He stated that the offensive passage referred to the practices in the past. It also stated, "Many Korean reporters tend to file reports without first checking and confirming important points." Though Jeong said he would resign and apologized for the corruption statement, he said he had no intention to apologize for saying that Korean reporters do not check basic facts. Jeong said he was referring to reporters' notion of thinking "nevermind if it's wrong." The Korea Reporters Association criticized Jeong, saying that it had to doubt his ability to perceive reality and common sense.

In 11 Oct 2003 the Chosun Ilbo reported that members of 40 civic groups demonstrated in Youido to attempt to abolish the mandatory monthly fees households pay for the Korean Broadcasting System (KBS). Activists said that KBS had broadcast a program that falsely embellished exile Song as a democratic leader -- when in fact he was the 23rd ranking member of the North Korea Politburo. The controversial program that featured Song, "Talking About Korea - Political Exiles Return," was broadcast without a proper preliminary review, which is a mandatory procedure for all programs made, insiders said recently. The program was an inappropriate action for a nationalized broadcasting company. German human rights activist Norbert Vollertsen said, KBS should not stand for the "Korean Broadcasting Service," but for the "Kim Jong Il Broadcasting Service."

By April 2005, the Korea Journalists Club, a group of retired journalists, claimed the freedom of the press in South Korea shrank in 2004 due to new press laws, a journalists organization said Friday. "The country's press freedom index last year stood at 54.6 out of 100, down from the previous year's 60," said a report by the Korea Journalists Club. The group said passage of the new press law in 2004, which "curbs the freedom of the press from all directions," substantially narrowed the scope of government critics, "and the freedom of news gathering and publication is now subject to legal sanction." President Roh Moo-hyun maintained a negative attitude to traditionally conservative papers like the DongA and Chosun Ilbo, which was directly linked to a "closed press policy of the incumbent administration," the report added. The Korea Journalists Club set up a team of six mass communication scholars to assess the nation's press freedom in 30 items.

The Roh administration's Fair Trade Commission has pressed forward with an investigation of 17 newspapers for "illegal" practices of free subscriptions and "freebie" giveaways in Apr 2005. However, the investigation is specifically targeting the major newspapers that Roh had labeled the "Gangsta Press." Some of the techniques of obtaining newspaper mailing lists and using them to mail out questionaires verged on being illegal itself.

Environmental Policy and Saemangeum Project: He offended some environmental groups when he announced that he would follow Kim Dae-jung's environmental decisions. Key among them was the arbitrary restarting of the Saemangeum project in the Kunsan-Changhang-Puan area. A local environmental group asserted the nation would reap benefits of 8.1 trillion won (US$6.76 billion) if the government halted the controversial Saemangeum reclamation project at the current phrase, but there will be a loss of 4.1 trillion won if it continued. The claim was made by the Korea Society for Ecological Economics (KSEE).

Saemangeum Project Map

Add to this mix the confusion caused by various ministries with conflicting stances. In April 2003, Environment Minister Han Myung-sook and Fisheries Minister Huh Sung-kwan encouraged NGO environmental groups' religious leaders who were carrying out an elaborate protest against the Saemangeum land reclamation project. Then a few days later Agriculture Minister Kim Young-jin said that the project should go forward. The conflict is that the environmental impact studies were claimed to be incomplete and threatened to disrupt the wildlife habitats, local fishing and seafood industries. However, the land reclamation would provide more farmlands and industrial areas.

The protest against the Saemangeum tideland reclamation project in Chollabukdo reached its climax as the sensational "three steps, one bow" procession led by a group of clergymen reached Seoul 57 days after they departed Buan 310 kilometers to the south. While the march was inching toward its destination, the National Assembly in Yeoido, the procession grew in length with the participation of conservationist citizens. However, the residents at the project site were holding equally agitated rallies calling for an early completion of the project. They asserted the Saemangeum was the only opportunity for the underdeveloped Cholla region to build its economy to the level found in other parts of the nation. (See REAL AUDIO VIDEO for video of the march.)

After a long delay, and under pressure from opposition parties, President Roh Tae-woo ordered the launching of the dike construction in November 1991, to fulfill a campaign pledge to garner votes in the region. Work was suspended in 1999 by the courts, but resumed two years later when the government of Kim Dae-jung arbitrarily restarted the Saemangeum Project in 2001. Immediately, more than 3,500 residents and environmentalists filed a lawsuit against the Ministry of Agriculture and Forestry and the prime minister in 2001, claiming that the Saemangum development project is unjust and that the environmental survey of the area was falsely drawn up. Upon his election, President Roh opted to continue with Kim Dae-jung's environmental policy. (NOTE: Kunsan AB's perimeter is directly affected by the Saemangeum Project and was signed off on over three years ago by the base.)

Saemangeum Protest (6 Jun 03)

Opponents claim that the 33-kilometer dike, supposedly the longest in the world, will remove an ecological treasure house from the face of the earth. Claims are that the migratory bird habitats surrounding Kunsan will be destroyed. Aside from its environmental value, the purely economic contributions of the wetland, with its natural shellfish and sea laver and the products of many marine farms, will be double what project administers promise for the future, they argue. The devastating failure of the Sihwa area in Gyeonggi Province gave environmentalists firm ground for their case.

Saemangeum Construction of Dike (2003)

Researchers at the Agricultural and Rural Infrastructure Corporation deny this claim, quoting different figures, and the controversy is endless. The economic fruits to be gleaned from the reclamation project, according to the corporation now conducting the work, include 180,000 tons of rice a year from 70,000 acres of new farmland, a large industrial estate, artificial lakes containing over 500 million tons of fresh water and port facilities that will handle huge volumes of cargo to and from China

Major construction firms have continued work to build floodgates and parts of dikes spending over one trillion won so far. The project's justification is dwindling, considering that the government has decided to idle farmland four times as large as the projected Saemangeum field. Anti-Saemangeum activists are demanding a decision by President Roh Moo-hyun to halt the project, at least until after a special panel of experts, proposed by the Environment Ministry, has completed its review of all environmental and economic aspects.

For Roh this is another difficult choice that is destined to have immense repercussions, whichever side he may lean toward.

Environmentalists March Against Saemangeum

Saemangum Dispute Pitches Up

by Kim Chang-gon (cgkim@chosun.com)

The fight over the Saemangeum Project, a land reclamation project in North Jeolla province, is heating up, with environmentalists on one side and local residents on the other.

A group of protesters just completed a march from the province to the capital. They left on March 28 and arrived at Yeouido Park on Sunday, after walking 310 kilometers by taking three steps and then prostrating themselves, then repeating the process, the entire way. At the park they held a rally to stop the Saemangeum project. The group of more than 300 people, including religious leaders, released a declaration, urging a resolution to the issue. They will conduct a march next Friday in front of Seoul City Hall and another one the following day at Gwanghwamun.

Down in Jeolla province, meanwhile, ralliers are demanding that the project continue. A group of 140 backers of the project were demonstrating in front of the North Jeolla Provincial Office last Thursday and at Gunsan Station Plaza on Friday. "The government must clearly state its will to pursue the project and put an end to these harmful disputes," a leader of the rally said. Another rally will take place on Monday in Jeonju, led by the union of civic groups for Jeonju's development. They are also preparing events that stand against the "Three steps, one bow" march.

An environmental activist spoke out against the projedct. "We see decreases of 20,000 hectares of rice fields every year," he said. "If the government is paying people to not plant rice, why is it making more farmland?

The opposition is also worried that if an embankment is built to close off the freshwater lake, the pollutants entering the lake will make it into another Sihwa Lake (a representative example of polluted lakes). Moreover, the financial value of the estuary silt is $23,000 dollars per hectare, so the value of the Saemangeum silt is over $500 million dollars, and thus should be preserved, they say.

The Ministry of Agriculture and Forestry says that due to the spread of roads and housing complexes, there is still a need for more farmland. They say that water problems will be controlled through construction of a W130 billion sewage disposal plant.

Saemangeum Environmental Protest (2001)

On 24 Jun 2003 the Chollabukdo Provincial Government said it would turn the Saemangeum area into a logistical center of the region. "The local government plans to develop Cholla Province into a production and trade base in Northeast Asia. To that end, Saemangeum will be developed for logistics and the cities of Chonju and Kunsan will focus on the machinery industry," Song Ha-jin, a director-general of the provincial government, said in a debate forum hosted by the Ministry of Planning and Budget.

On 15 Jul 2003, the Seoul Administrative Court ordered that the project be suspended until its fate is decided after environmentalist groups present their arguments that the project will ultimately wreak havoc on the local landscape and sea life. The Court agreed to stop the Saemangeum Project before it reached a final decision stating that it agreed with the environmentalists that the potential damage to the ecology required immediate action. Upon the announcement of this decision the Agriculture and Forestry Minister Kim Young-jin sent in his resignation to protest the court order that work on the Saemangeum land reclamation project be halted. Buan County and North Cholla civic groups joined by Governor Kim Jong-gyu agreed to protest the court decision. Puan county of North Cholla Province also said it would withdraw its application to host a radioactive waste treatment facility if the Saemangeum project was suspended.

EPILOGUE: Saemangum Tidal Reclamation Project: After a year, no sign of life (Apr 2007) A year after the completion of a sea wall reclamation project at Kimjae, North Jeolla Province, sea foam devoid of life washes up on the Geojeon tidal flats. A researcher said the levels of life in the surrounding sea dropped suddenly after the reclamation project, signaling an ecosystem that has been thrown out of balance. (Source: Hankyoreh News.) (See Saemangeum to Restart in March (Jan-Apr 2006) for details of the project. Basically the above report is an "I told you so" from the environmentalists -- and there will be more to be heard on this issue. See Green Korea United: Saemangeum & Wetland for activist actions in 2003-2006. and Wikipedia.)

Saemangeum Environmental Damage (May 2007) As per birdskorea.org, the current state of the flats is deplorable and in contradiction to the government's alleged pledge, regarding the condition of this important area:

"When the courts allowed the Saemangeum reclamation to continue, the only caveat that the judges gave was that good water quality must be maintained. This is clearly not happening, but is never mentioned by media. Some indicators of severe water quality and environmental degradation:

1) Red algal sludge, outer Dongjin, May 2007.
2) Although claimed to be environmentally-friendly, large-scale reclamation causes severe water pollution and mass die-offs in many species. Dongjin, May 2007.
3) With almost no tidal movement, many tidal creeks are now filled with foam and garbage. Mangyeung, late April 2007.
4) Throwaway society. While claiming that good water quality can be maintained, Okgu tidal-flats, which once supported tens of thousands of shorebirds, is now littered with garbage. April 2007."

. . . "Incredible as it seems, no open or clear program was in place to monitor the impacts on wildlife of this massive project - despite South Korea being a signatory to the Ramsar Convention, despite Ramsar Resolution 9.15 in 2005, recommending "the government of the Republic of Korea advise the Secretary General of the current situation concerning the sea-wall construction and reclamation of the Saemangeum coastal wetlands, and the impact of the construction work undertaken to date on the internationally important migratory waterbird populations dependent upon these wetlands" (Ramsar Res. 9.15.27.10). Even more incredible, the major project proponents such as the Ministry of Agriculture and Forestry (MAF) and the Ministry of Construction and Transport have continued to insist that the reclamation is "environmentally friendly".

Nuclear Waste Dump Protest On 15 Jul 2003, an islet off the central west coast was chosen as the single candidate site for South Korea's first nuclear waste dump, the Commerce, Industry and Energy Ministry said. Puan county tied the withdrawal of its application to host a radioactive waste treatment facility if the Saemangeum project was suspended. A 14-member committee was expected to officially choose Wido in Puan County, North Cholla province, after conducting on-site geological and environmental inspections. However, after massive protests in Puan the official designation of Wedo Island as the nuclear waste site was delayed.

Residents in the region staged violent protests almost daily starting in July 2003, asking the government to withdraw the plan. They have attacked government officials and occupied sections of a major highway. On 23 Jul 2003 some 2,000 protesters scuffled with police Tuesday outside the county office of Buan, North Jeolla Province, after rallying against the government's plan to construct a new nuclear waste dump nearby. Twenty demonstrators and 17 policemen were reported injured in the clash. On 21 Aug 2003 more than 1,000 Puan residents, joined by environmental activists, staged a second sea-borne protest aboard hundreds of boats to oppose the project on Wido, an islet off their coast with 1,500 residents. They blocked passage of other boats to and from 13 ports that dot the coastline. On 23 Aug 2003 the riots spread to Chonju when 3,000 residents of Puan and activists converged on the Provincial Capital. According to Yonhap News, they attacked police with steel pipes and burned two police vehicles.

However, on 22 Aug 2003 President Roh warned that his government would stop efforts to persuade opponents of a nuclear waste dump project if they continue to act unreasonably. Roh chastised the anti-nuclear protesters for ``blocking free exchange of opinions.''

However, on 3 Oct 2003 the parents who were boycotting the schools in protest reentered their children for fear they would held back a year. The protests turned violent. (See Protests: October.)

Frustration on the government refusal to back off its selection, the riots became more and more violent. Injuries to riot policemen and the protestors were on the increase. In Nov 2003, the protests resulted in over a hundred injured on both sides. (See Protests: November.)

Finally in Dec 2003 the government started to seek "alternative sites" but this was done before and NO ONE WANTS THE SITE. The only reason Puan got selected was the Puan District Chief without consultation of the people "offered" the site in order to gain short term benefits -- and possibly political favors. This was the person that was severely beaten by protestors. The government stated that it will not consider the region of Buan as being properly registered as a candidate site if a referendum on the issue by its residents is not held properly.

EPILOGUE: New Waste Dump Site Realizing that public opposition to high-level dumps is difficult to overcome, government announced that it would build a low and mid-level radioactive waste dump site - but would not attempt to store high-level waste at this site. Further, the government offered a huge financial windfall to the site selected: US$300 million to any community that would accept a low and mid-level radioactive waste dump. An additional US$5-10 million would go to the site annually. Finally, the headquarters office of Korea Hydro and Nuclear Power Corporation would be relocated to the host area, providing jobs and more economic incentives.

The reaction of many local governments to the central government's proposal had changed from ``NIMBY'' (not-in-my-backyard) to ``PIMFY'' (please-in-my-front yard), because of the supposed economic benefits. Many local governments (small cities and rural areas) found these incentives attractive because they foresee both development and economic prosperity from government's funding of the dump site. The candidate cities and counties were Pohang, Yeongdeok, and Gyeongju along the eastern coast and Gusan in the western coast. Based on the results of regional voting that was scheduled to take place on November 2, 2005, the site with the highest popular vote would become the national dumpsite, given that at least one-third of that region's residents cast a vote.

Activists claimed the government had actively promoted the dump site with a campaign of lies, telling communities that the radioactive waste dump would not contaminate the surrounding environment, posed no health risks to those living near the site, and would encourage economic development in the area. They claimed the candidate sites have not been screened for geological stability and environmental impact.

On 4 Nov 2005, the government officially announced Gyeongju as the home of the country's first nuclear waste dumpsite, kick-starting the stalled 19-year-old initiative. The southeastern city had a voter turnout of 70.8 percent and the highest approval rate of 89.5 percent to house the controversial site among four competing cities through a plebiscite.

Farmers Problems, Opening of the Rice Market and Surplus Rice: Roh also created some hard feelings amongst farmers when he stated in February 2003 that the farmers had brought many problems upon themselves. The basic problem for Roh was that the government warehouses are overflowing with rice as the Korean populace is eating less rice, but the government is forced to buy high and sell low. The government has been clearing its overstock by shipping the rice to North Korea as part of its food aid. But the problems are truely not of the farmers making. The labor market is drying up in the country as youths in the country fled to the cities and the WTO has forced the rice market open. Profits are low to non-existent and the farmers are suffering. There is a glimmer of hope as some farmers have switched to specialty crops and on the average farmer's household incomes have risen for the first time in 31 years.

On 20 Jun 2003 farmers attempted to stage a mass demonstration in Yoido with 50,000, but the police restricted the entry into the area. The farmers were demonstrating against Korea's free-trade agreement with Chile blocked major expressways nationwide with trucks and tractors yesterday, creating heavy traffic jams. Some agricultural workers lay on roadways or drove their vehicles slowly to impede traffic. In North Chungcheong province blocked the Joongbu Expressway with an hour-long demonstration. In North Gyeongsang province farmers drove their cars at a leisurely pace to slow down traffic. On the Namhae Expressway in South Gyeongsang province, 150 cars driven by farmers took over the highway, jamming the road in both directions for nearly 24 hours. About 200 farmers in South Jeolla province protested in front of Gwangju Station and tried to block the Honam Expressway with about 80 trucks and sedans, sparking a clash with police and tying up the route from 11 a.m. until late afternoon. Later 300 cars filled with agricultural workers from North Jeolla province slowed down traffic by driving at about 20 kilometers (12 miles) an hour. Farmers in South Chungcheong province joined in with another 40 trucks. Another 1,500 farmers from North and South Chungcheong provinces tried to drive to Seoul, sharing 800 trucks and passenger cars. They were prevented by police from reaching the capital and continued their protest at the tollgate of the Honam Expressway. About 1,000 members of the Korean Farmers League assembled at Youido in Seoul and demonstrated in front of the National Assembly, demanding that the free-trade agreement be withdrawn. They said phasing out tariffs against Chilean products would cause the collapse of Korean agriculture. The league said it would stage a large protest 30 June 2003 if the government presents the free-trade agreement to the National Assembly for ratification. (See Voice of the People for video footoage of farmer protests blocking the highways. Video shows farmers burning farm machines in protest and riot police using shields and fire extinguishers to push back the crowd to put out the machinery fire.)

Protests continued throughout the year joined by the foreign workers who were being threatened with deportation. One Korean leader committed suicide in Cancun, Mexico during a world conference on Free Trade Zones. Protests were constant but for the most part non-violent. At the end of the year, the plight of the farmers was no better off than before. The promises of Roh to solve their situation has been empty.

EPILOGUE: Rice Solution? Ship to the North as Humanitarian Aid The Roh administration found the ideal solution in its problem with the rice overflowing in its warehouses and the decreasing demand for rice in the Korean diets. The Roh administration unloaded the rice from its warehouses and shipped it north as humanitarian aid for the DPRK. Though the Roh administration consistently denied it, there were constant stories that the rice was being diverted to the DPRK army and parts were siphoned off by the elite for resale on the black market. The Roh administration did not demand monitoring -- seeking instead to trust the North at its word. At the end of the Roh administration in Jan 2007, proof was revealed that the DPRK was using the rice for its military as ROK humanitarian aid rice bags were observed by the ROK military along the DMZ mixed in with DPRK rice bags.

The Roh administration did nothing to alleviate the farmers' plight. The farmers protests continued against the US-ROK Fair Trade Agreement as this would also deal a severe blow to the ROK agricultural market. Besides rhetoric, the Roh administration did very little to aid the farmers.

Roh at his hometown

Poverty Continues to Rise According to a Korea Herald report on 13 Oct 2003, the Korea Development Institute (KDI) reported that one out of 10 urban households live below the poverty line due the rising number of unemployed since the economic debacle of 1997-98. The nation's unemployment resulted in a doubling of the number of urban households living below the absolute poverty line to 10.1 percent in 2000 from the mid-5 percent recorded in 1996. KDI cited aging population and the increasing number of nuclear families as other reasons for the worsening poverty. Analyzing the difference between market income and disposable income, the cause of the widening income inequality was that market income is pre-taxed money while disposable income represents post-taxed money that individuals take home. "The difference between market income and disposable income was relatively small compared with the same in other advanced nations, which means that the nation's wealth distribution mechanism has not matured yet." In other words, the rich retain their wealth while the majority of the middle-class are concentrated in the "lower middle class" -- with 10 percent of the urban population remains in poverty.

The nation's taxation and social safety net do not fulfill their functions well. This is a self-evident truth as the safety net remains non-existent. The chaebols have created so many loopholes that they escape taxation with "slush funds" and illegal transactions. The government backed off investigating these chaebols for fear of worsening the economy -- but most suspected it was the money from the chaebols that greased the skids. KDI recommended that in order to accomplish the income equality between haves and have-nots, the government needed to push for the so-called "horizontal tax justice" by making the income status of the self-employed more transparent and levy corresponding taxes.

At the end of 2004, the "slush fund" loopholes were being uncovered with a vengeance by the prosecution. The Grand National Party (GNP) was accused of receiving more than 50 billion won (US$41.75 million) in slush funds from South Korean conglomerates, including Samsung, SK, LG and Hyundai Motor, before and during the election campaign of 2002.

EPILOGUE: The rich got richer and the poor got poorer The Roh administration denied the economy was in a recession from the start of the Roh tenure in 2003 and continued into 2005. Finally in 2006, the Roh administration admitted that the ROK had been in a prolonged recession. The problem was masked by the booming export profits that failed to show the downturn in domestic markets. The chaebols continued to lie, cheat and steal as they pleased -- with the assistance of the Roh administration. Many of Roh's aides were caught in corruption scandals. At the end of Roh's term in Feb 2008, the Samsung group was under investigation for slush funds and the illegal transfer of power to the CEO's son. The Hyundai group's CEO had been imprisoned -- but freed from his embezzlement imprisonment because of his "service to the country" and still had not given the money he promised to secure his release to the government. The Roh "get out of jail free" policy with presidential amnesties made a mockery of the poor people's plight. If you were poor, you went to jail...but if you were rich, you were released because of your work for the ROK economy.

Chaebol and Business Reforms: He came to office claiming that he was to reform the chaebols but once in office backed off as the SK scandal resulted in the arrest of the chairman for insider trading and stock manipulation to gain control of the group. Then it was learned that the group suffered huge losses and lied about its profits. World-wide confidence in Korean companies in general was shaken. The economy started to weaken and he needed the business leaders so he backed off on reforms -- though he publically continued to mouthe that he was committed to chaebol reform. The chaebols paid lip-service to support the reforms, but as in the past they continued to resist the reform proposals. The tax audits of the other chaebols were delayed for fear of finding other irregularities that would surface.

The corruption of large business has been revealed repeatedly -- not only in illegal political contributions -- but in the bribing of government officials. Prosecutors launched an investigation of the company in November 2003 and determined that IBM executives paid off government officials in order to fix bids for 66 billion won ($55 million) worth of computer equipment to agencies including the National Tax Bureau. In Feb 2004, nine executives of IBM were sentenced to jail along with hefty fines.

Then the nuclear issue caused the sovereign credit rating of Korea to be downgraded. Roh again sent off a delegation to Wall Street to explain the situation, but having a Korean general in uniform show up at a business meeting sent a strange signal to the group according to press reports. To counter this, the chaebols started up roadshows in the U.S. and a large contingent of business leaders accompanied Roh on his May 2003 summit visit to the U.S. Korea's top conglomerates planned to hold a new series of investment road shows in New York, Boston and London in the middle of June 2003, to promote direct foreign investment in Korea.

Bottomline was that sell-offs of Korean stocks continued and direct foreign investment (FDI) dropped in the first quarter. To attract foreign investment, a new incentive package for high-tech foreign firms investing in Korea will award a cash grant equivalent to 20 percent of the value of their total investment. Controversial plans are underway to allow special trade zones for foreign companies to include schools and hospitals operated by foreign companies with special tax advantages.

First quarter profits were down dramatically across the board. The chief problem in the manufacturing sector was the bad semiconductor market, while SK's scandal brought about the profit losses. The top-10 conglomerates' combined revenues in the first quarter added up to 39.60 trillion won, a fall of 19.05 percent from the previous year, and they posted net profit of 2.17 trillion won, down 35.81 percent. On the other hand, some large firms in specific sectors stood their ground in the first quarter, despite the U.S.-Iraq war and the sluggish market conditions here. The shipbuilding and steel firms are among these, having attracted a wealth of orders at high prices -- but also the wrath of trading nations with allegations of dumping and government subsidies. (NOTE: In Nov 2004, the WTO ruled against the EU claim that the South Korean government-led restructuring of its shipbuilding industry constituted state subsidization. The tentative ruling allowed the country to dispel a controversy that has surrounded the government's role in restructuring and the shipbuilding industry after it underwent widespread reorganization in the wake of the 1997-98 Asian finance crisis.)

In June 2003 the country was "technically" in a recession. Korea's economy grew at its slowest pace in more than four years in the second quarter due to the collapse of domestic consumption that eroded gains from brisk sales abroad. GDP rose just 1.9 percent from 2002, the slowest clip since the nation's 1997-1998 IMF crisis. This was the second straight quarter-on-quarter contraction, shrinking 0.7 percent from the January-March 2003 period. Domestic consumption has slid since late last year, after a four-year spending spree began to trail off on a sea of overdue credit-card bills and tightened regulations on household loans. In the second quarter, Koreans spent 2.2 percent less than a year earlier and 1.4 percent less than in the first quarter.

Companies' investment in building new plants and buying equipment dropped 0.8 percent year-on-year, the worst reading since the fourth quarter of 2001. The growth of exports remained robust at 12 percent, although it slowed from the first quarter's 19.8 percent expansion. Real gross domestic income, which represents the nation's real purchasing power abroad, ticked up 0.2 percent from the year-earlier period, as the price of Korean exported goods fell more sharply than that of foreign ones shipped into the country.

The SK Global Co. scandal continued to shake the confidence of foreign investors. The world investment circles continue to monitor the developments of this scandal as a signal of Korea's willingness to reform its chaebols. SK Global, the trading arm of the SK Group, amassed 1.5 trillion won in debts through dubious accounting practices -- including doctoring its books to overstate its profits -- and illegal cross-lending amongst affiliate banks. Local creditors stepped up pressure on the SK Group to come up with a more viable bailout plan for its shaky trading unit. The parent company SK Corp, Korea's biggest oil refiner, is coming under growing pressure from local banks to salvage its troubled partner. Hana Bank, SK Global's main lender, said the SK Corp assistance offer fell short and creditors want the SK Corp. to convert all of SK Global's 1.5 trillion won debt into equity or else face the liquidation of SK Global. Samil Accounting Corp. reported to the creditors that SK Global would be worth more if it was kept afloat than if it was liquidated. The accounting firm estimated SK Global's value as a going concern at 6.4 trillion won, higher than its liquidation value of 2.9 trillion won.

However, the largest shareholder of SK Corp., Sovereign Asset Management, a Monaco-based equity investment firm, has reiterated its intention not to allow SK Corp. from providing financial support for the ailing affiliate as part of its efforts to reform the oil refiner and protect shareholders' interests. (Sovereign's subsidiary Crest Securities holds a 15 percent stake in SK Corp.) Stressing that SK Corp.'s support of SK Global must be based on "commercially sound principles," Sovereign questioned the right of the SK Group to urge the oil refiner to participate in the bailout plan. "The SK Group is not a shareholder of SK Corp. and its not even a legal entity," Sovereign said in a statement. "We therefore challenge its authority to negotiate on SK Corp.'s behalf or attempt to bind it to any decision-making process." It also threatened to take legal action against SK Corp.'s board members if the oil refiner proceeds to support SK Global. The announcement came after the SK Group's chairman, Sohn Kil-seung, vowed last week to save SK Global "under any circumstances" because the failure of SK Global would entail the breakup of the SK Global Group.

In July 2003, a settlement was reached between the domestic and foreign creditors that set forth that the company is to be normalized through joint supervision by both creditor groups. The firms is to also avoid a market expulsion. If the company had been put under court receivership procedures, SK Global would likely have been de-listed from the share market. The foreign creditors of SK Global held a plenary session in Hong Kong on Wednesday and agreed to accept the debt-rescheduling plan for the firm that had been offered by the firm's Korean creditors. The plan that the parties agreed to stipulates that the foreign creditors will receive 43 to 48 percent of the outstanding loans in cash. As the foreign creditors accepted the rescue plan, domestic creditors are to discard their so-called "prepackaged" bankruptcy plan in favor of the joint supervision scheme. (NOTE: In Sept 2003 it was revealed that "SK Global" was going to change its name to "SK Network" to offset the negative image over its name.)

After SK Corp.'s board formally approved 850 billion won bailout of SK Networks, it formally approved 143 billion won bailout of SK Shipping and sale of 10.4 percent stake to Hana Bank and other SK allies. In Dec 2003, Court rejects Sovereign's injunction to prevent SK Corp. from selling stakes to allies. Sovereign attempted to remove Chey Tae-won, SK Group owner and chairman and chief executive of SK Corp., who was sentenced to three-year jail term over SK Global $1.3 billion accounting fraud. Sovereign accused Chey of failing to deliver shareholder value and of misallocating funds by bailing out weak SK affiliates. The oust attempt failed, but other firms are buying into SK Corp which will give them a stronger hand in the next elections.

By Dec 2003, domestic banks had joined forces to prevent Sovereign Asset Management from undertaking a hostile takeover of S.K. Corp., the holding company of the nation's third largest conglomerate. Hana Bank, Shinhan Bank, Korea Development and a few other domestic banks recently agreed to buy 13.2 million shares in SK Corp., held by the company, or 10.41 percent of SK Corp. in cooperation with several other institutional investors friendly to them.

EPILOGUE: In 10 March 2005 the Joongang Ilbo reported, "Sovereign Asset Management, a private equity fund established in New Zealand and now based in Dubai, was trying to turn the meeting into a referendum on SK Corp. Chairman Chey Tae-won. In last year's shareholder's meeting, Sovereign Asset Management lost a vote battle to Chey and his friendly shareholders. SK Networks was found in early 2003 to have misstated its 2001 earnings by 1.5 trillion won. The chairman was convicted of involvement in a US$1.2 billion fraud at affiliate SK Networks Co., formerly SK Global Co. Chey faces an appeals court on March 30. Creditors have rescued the company from bankruptcy through massive debt-equity swaps. Sovereign Asset Management, which holds a 14.96-percent stake, has denounced Chey, saying the chairman's conviction has devalued the top refiner.

For over a year, Sovereign has been seeking to oust Mr. Chey, who was convicted of accounting fraud and insider trading in 2003. Sovereign requested a special shareholders meeting last year, but it was turned down by SK's board. Sovereign's appeal to a Seoul court to overturn the board ruling was also rejected. The meeting Friday is to address several key issues, including approval on the amount of year-end dividends and increases on the limit on pay for directors. The major item, however, will be how shareholders will vote on whether or not to reinstate the two internal directors the board has recommended. The candidates are Mr. Chey and Kim Joon-ho, who heads the company's corporate ethics team and is a former prosecutor at the Ministry of Justice and Supreme Prosecutors Office.

Although he holds just a 0.9 percent of SK stock, Mr. Chey is a controlling shareholder. Shares held by Mr. Chey, immediate family members and SK-affiliated firms total 15.6 percent. Shares of institutional investors who have recently announced their support for the company's position, raise the level to about 35 percent. These include Samsung Electronics, Pantech & Curitel, and 36 out of 38 institutional investors, including firms such as Korea Investment Trust Management (3.6 percent) and Chohung Investment Trust Management (2.5 percent). Sovereign, on the other hand, holds 14.9 percent, and has the support of Prudential Asset Management (0.2 percent) and some other minority shareholders.

The opposing sides are actively wooing supporters. The company met with institutional and individual shareholders to gather more votes to back Mr. Chey. Sovereign, meanwhile, has been working hard, taking out a series of full-page newspaper advertisements advising how shareholders should vote. It also sent out a letter to shareholders last month explaining why Mr. Chey should not be elected. Saying that the dividends for SK Corp. investors who bought at the beginning of last year were just 40 percent of what investors in competitor S-Oil received, Sovereign claimed that voting against Mr. Chey would remove a "drag" on SK Corp.'s value.

Meanwhile, a corporate analysis report released by Merrill Lynch yesterday praised SK Corp.'s board of directors, saying that it was the best in Korea. Merrill Lynch said that SK's system of having its board directly involved in day-to-day management had benefited the company and that SK was the only Korean conglomerate that had a chief executive officer hold direct talks with foreign shareholders. The tension between Mr. Chey and Sovereign will continue to be a positive factor in maximizing share value, the report said.

On 11 Mar it was announced that the scandal-tainted head of SK Corp. won a fresh shareholder mandate, surviving a second attempt to unseat him from the top post of South Korea's largest oil refiner. Shareholders reappointed Chey Tae-won as a board member at an annual meeting, voting down Sovereign Asset Management's bid to oust him. The reappointment came from 60.63 percent of the shareholders. Chey, who is on bail while appealing a fraud conviction, virtually controls SK Group, one of the country's top conglomerates. SK Corp. is the group's de facto holding company. The reappointment is seen as reflecting the shareholders' view that SK Corp. has improved its corporate governance and is performing well under Chey's leadership.

Investment Fleeing the Country The nation's leading corporations in the first quarter of 2003 were defeated by three hard blows: the war in Iraq, the severe acute respiratory syndrome and the recent trucker's strike in the logistics sector. One of the worst hit sectors was the airline industry, as travel to SARS-affected regions and the Middle East came nearly to a halt, and they admitted that it would be impossible to meet their original profit targets. Asiana Airlines and Korean Air are cutting lines and resetting targets. SK Telecom reduced its total investment volume for 2003 and sharply cut funds for developing wide-band code division multiple access (W-CDMA). Ssangyong Motor postponed investment until after the economy recovers. Samsung Electronics and LG Electronics have seen low results in the first quarter with potential cut backs on hiring and investment. The Hanwha Group was set to slash its profit expectations.

In June 2003, a study by the Federation of Korean Industries (FKI) found that investment was fleeing the peninsula. The data reflected that the manufacturing industry would be virtually empty by 2007. Labor-intensive industries, including shoes, textiles, cellular phones, automobiles, and machine parts, have been quick to relocate abroad. Samsung Electronics has already moved 60 percent of its production line abroad, and LG Electronics produces state-of-the-art products, such as PDP televisions, at its plants in China. "We can no longer build home electronics factories in Korea, due to the high cost of labor," said Kim Ssang-su, LG Electronics' vice president. The FKI blamed unstable labor and management relations, along with high labor costs, for the companies' transfers to foreign countries. The labor and management relationship in Korea was the worst in a survey performed by the Institute for Management Development in Switzerland.

In addition, wages for employees in the manufacturing industry have increased by 50 percent since 1995, while those in Japan increased by 5 percent and those in the United States and Taiwan increased by 17 percent. Hourly wages for workers in Korea are seven to eight times more than for Chinese workers, and 43 times higher for executives. Along with this, the price of industrial complex sites are 10 times more expensive than in China or Indonesia and the government restrictions and various allotments in forms of near-taxes are causing companies to leave Korea.

The negative image of Korean companies abroad continues to tumble. In Sri Lanka, companys that first went to the country for its cheap wages ran into financial difficulties and its management "fled" the country leaving behind thousands of employees with unpaid wages and bankruptcy. Even the Korean employees did not have enough money to get home. Of 158 small-mid size companies abroad in Asia, 20 had been accused of doing exactly as above.

Some in business management circles claim that the government should abolish its restrictions and that local governments should take the initiative to attract domestic and foreign companies, according to the characteristics and benefits of each region.

On the other hand, the steel and the shipbuilding industries have a positive outlook for profitability in 2003 thanks to rises in product prices and a rush of orders early this year. POSCO and INI Steel, for example, have upped their sales targets this year, based on the prosperous first quarter and a reasonably bright outlook for the remainder of the year.

EPILOGUE: The Roh administration continued to pursue the Lone Star Fund from 2005-2008 for back taxes and supposed stock manipulation. In 2008, the Lone Star executive was convicted despite testimony that he was innocent. The xenophobic atmosphere of business had caused the Direct Foreign Investment (FDI) to fall for three consecutive years. The message the Roh administration broadcast was heard worldwide: Korean companies will be owned by Koreans. The only winners in this was the chaebols whose profits remained in the family. The lower class workers saw minimal job growth, unemployment increases, inflation and a lowered standard of living. The progressives were soundly routed starting in 2007 because of their failed economic policies.

Many mid-size companies left for China in 2005 because of the lower wages, but in 2008 it was found that many were returning to Korea...some closing shop in the middle of the night and simply fleeing China. The companies failed due to a multitude of problems -- the most prominent being ROK firms were mid-tech, but Chinese workers were mostly relocated farmers with no technical skills.

Korea Under Attack for Dumping and Govt Subsidies However, internationally, Korean products are under attack for dumping or allegations of being subsidized by the government. For example, 15 of the 20 items restricted by Chinese anti-dumping measures were South Korean export items. 9-14 percent anti-dumping tariffs were levied on Korean steel products. Taiwan and the European Union are also in disputes with Korea over dumping and government subsidies -- especially dealing with the ship building industry. In June, the European Union asked the WTO to set up a panel to handle an ongoing dispute over the Korean government's alleged subsidies to its shipyards. Under its rules the WTO will have to set-up a three-member panel at the end of next month to gather related information and claims from each side and publish interim and final reports in early October and December 2003. (NOTE: In Nov 2004, the WTO ruled against the EU claim that the South Korean government-led restructuring of its shipbuilding industry constituted state subsidization. The tentative ruling allowed the country to dispel a controversy that has surrounded the government's role in restructuring and the shipbuilding industry after it underwent widespread reorganization in the wake of the 1997-98 Asian finance crisis.)

In April 2003 the U.S. called for countervailing duties of 57.37 percent on chips (later reduced to 44.7 percent) shipped to the US by Hynix because the ROK government repeatedly bailed out Hynix. The accusation focuses on a series of rescue packages -- including emergency loans, debt rollovers and tax benefits -- to help Hynix stay afloat. Hynix accounts for 30 percent of the ROK's total DRAM exports. It shipped 553 million dollars of DRAMs to the US and 271 million dollars to the European Union last year. Talks to negotiate the issue in Paris in May 2003 met a roadblock because of US businesses' negative attitude towards the merits of the talks. Korea will take the issue against the U.S. and the EU to the WTO. US authorities voted to slap steep duties on ROK semiconductor imports, even in the face of furious protests from Seoul. The quasi-judicial International Trade Commission (ITC) voted three-to-zero in support of a determination that the semiconductor imports from major manufacturer Hynix Semicondcutor were damaging to US industry. The ITC vote was effectively the final stage in a lengthy process leading to duties of 44.71percent on the imports from Hynix Semiconductor. Following the ruling, the EU levied a 45 percent traffic on chips. Following the US suit, the European Union decided to slap a 33 percent tariff on Hynix memory chip imports over the alleged illegal state subsidies. However, in Nov 2004 a panel of the World Trade Organization (WTO) has ruled in favor of Hynix Semiconductor Inc. in the memory chip manufacturer's suit against the countervailing tariffs imposed on its chips by the U.S. Department of Commerce. The U.S. government's steep duties from June 2003 on Hynix's memory chips was found to have violated WTO's regulations against subsidies. However, the U.S plans to appeal the WTO decision, and countervailing duties on Hynix DRAM chips will be removed in September or October of 2005 at the earliest. In April 2005, Hynix Semiconductor said it agreed to pay a US$185 million fine in a global price-fixing case the U.S Justice Department had been investigating. A beneficiary of a government bailout program, Hynix will have to pay a considerable portion of its earnings in fines to the U.S. government. Hynix's penalty is the third largest anti-trust fine after the U.S.-German chipmaker Infineon agreed to pay a $160 million fine last September. A Hynix official said the company decided to admit to the conspiracy and pay the fine as a way of ending management uncertainty after Infineon already admitted the price-fixing charge.

Then on 26 June 2003, the U.S. Commerce Department lodged an anti-dumping investigation into Korean-made thermal transfer ribbons (TTRs) being used for barcodes on products. The U.S. International Trade Commission (ITC) handed down a preliminary ruling on how much damage Korean-made TTRs, and the Commerce Department will then decide whether TTRs were dumped by 24 Sept 2003.

EPILOGUE By 2008, Samsung executives in the US had been sentenced to prison time and the ROK chaebols in the US were under constant scrutiny. The charges of dumping continued unabated by US competitors.

Korean Outlook Dims as Companies Leave Korea On the positive side, on 26 May 2003, Standard & Poor`s (S&P) officially announced that the Sovereign credit rating and the credit rating outlook in Korea stands at `A-`, representing `stability`. However, they warned that "the possibility of the tense situation in the Korean Peninsula leading to military action is very rare but by any chance, if the concern becomes a reality, the national credit rating of Korea would drop by one or more grades." To attempt to offset the negative impressions about Korea, Roh's aides in June 2003 went on a "road show" to meet with major investment firms including Merill Lynch, and Fitch, a leading credit ratings agency. They also held talks with senior British officials on trade and investment. The officials outlined the government's economic policies centering on its plan to build a Northeast Asian financial hub in the nation and attain the goal of $20,000 in national income per capita.

The 14 Jul 2003 edition of Newsweek stated, "South Korea's trade partners were getting fed up, too. The nation's first-ever bilateral free-trade deal was conceived as a complementary swap—Chilean fruit for Korean technology—but has been blocked by fears of its impact on Korean grape growers, derailing a landmark deal to defend a niche lobby. Because of the movie-industry opposition, Washington is reluctant to sign an investment treaty with Seoul that would deliver $3 billion in new U.S. investment in coming years." By Feb 2004, the Chile FTA was passed by the National Assembly -- though its passage was dragged out by bloody riots in the streets from farmers starting in 2003.

Fifteen executives of foreign financial institutions working in Korea evaluated the investment conditions of the financial sector for Korea, Hong Kong, Singapore and Shanghai on seven areas. Korea received a grade of 2.5 on a scale of 1-to-5, which is better than Shanghai's 2.3 but miles behind the 4.7 of Hong Kong and Singapore. Specifically, Korea was rated 2.15 on loan regulations, 3.07 on foreign exchange, 2.76 on government regulations, 2.61 on transparency and consistency of policies, 2.23 on labor flexibility, 2.61 on the tax system and 2.23 on English skills. When compared to Hong Kong and Singapore, Korea is "far behind" in labor flexibility, loan regulations and English skills, while being "relatively behind" in foreign exchange, government regulations, transparency and consistency and the tax system. On the other hand, Korea was ahead of Shanghai in foreign exchange, government regulations and transparency and consistency, though it is less attractive in labor flexibility, English skills and loan regulations. The group pointed out that Korea also needs to improve its openness in the markets for legal and accounting services, its protection for intellectual property rights in the financial sector and its enforcement of regulations designed specifically to protect foreign investors.

In October 2003, the Samsung Economic Research Institute (SERI), a leading business think tank, said that the amount of foreign direct investment (FDI) coming into the country in 2003 would reach only US$1.2 billion, one-ninth of the US$10.3 billion in FDI achieved in 1999. It also noted that between January 2002 and March 2003, only six multinational businesses' regional head offices or production plants opened up in Korea, lagging far behind the 46 in Singapore, 44 in Hong Kong, and 29 in China. On top of the sharp drop in FDI, foreign companies that have advanced into Korea are showing signs of wanting to jump ship primarily due to the labor troubles-strike situation. SERI said the amount of FDI in Korea plummeted from 1 percent in 1999 to 0.2 percent of the total global FDI in 2003, backsliding to 1960 FDI levels.

In Feb 2004, Moody's Investors Service stated that it was unlikely that it would upgrade Korea's sovereign credit rating (current investment-grade rating of "A3") for the time being until there are clear signs pointing to an improvement of the North Korean nuclear issue. Moody's downgraded the outlook on Korea from "positive" to "negative" in February 2003, citing the uncertainties surrounding the North Korean nuclear issue. Moody's supposedly gave high points to the nation's efforts to reduce short-term debt, improved foreign reserves and current account surplus. Moody's showed interest in the credit card crisis prompted by the near collapse of LG Card - the nation's largest card service provider - last year and the household debt issue including rising credit delinquencies.

NOTE: In March 2005, it was reported that South Korea's credit card firms cut their losses significantly in 2004 on the back of massive bad loan write-offs and tightened lending criteria. Samsung Card Co., LG Card Co. and four other credit card companies recorded a combined loss of 1.33 trillion won (US$1.33 billion) last year, compared with a loss of 7.73 trillion won a year earlier.

Privatization Plans Put on a Hold: Initially, the reform had privatization of railroads as its premise, but with the inauguration of the new administration, the plan changed to turn the industry into a public corporation. The privatization plans of the past decade -- started by the IMF Crisis in 1997 -- were placed on indefinite hold after Roh settled the national railway strike by setting aside the privatization plan. The Construction and Transportation Committee postponed the deliberation of the Korea National Railway Corporation bill for fear of a strong repulsion from the union. It then recommended only bills on railway industry development and making the industry a public corporation. The railroad workers union has demanded that the railroad reform bill to be presented to the National Assembly on 30 Jun 2003be nullified, and said it would go on strike if the demand was not met. The Korean National Railroad (KORAIL) union that began their strike on 28 Jun 2003that inflicted serious damage on the export and import industry. Freight train operations were slashed from 434 times per day to 44, allowing only 14,000 tons of goods to be transported per day from the usual 120,000 tons. The police were sent to three sites -- one in Seoul, another in Yeongi, South Chungcheong Province, and the third in Yeongju, North Gyeongsang Province The National Police Agency confirmed Sunday that it arrested 1,519 people in connection to the railway union strike. The Police broke up sit-ins staged by union workers belonging to KORAIL in places like Seoul, Pusan, Taejeon, Taegu and Kwangju. Of the total taken into custody, over 450 have been released because their involvement in the illegal labor activity were deemed minor.

The plans to combine the Korean Housing Ministry (KHM) and the Korean Land Corporattion (KLC) were ditched as well. The KHM is in deep financial trouble while the KLC is financially stable opposes the combining of assets.

In June 2003, the the Ministry of Finance and Economy (MOFE) stated that it would develop a model for the privatization of public companies and ownership structures. The move followed criticism that not enough attention has been given to the details related to the selloff of publicly-owned companies and the need to correct this trend. The ministry said state-run think tanks would be tasked to come up with appropriate methods for application to future instances.

Privatization surfaced again in 2004. In Apr 2004 unionized workers of Daewoo Heavy Industries and Machinery Ltd. (DHI) said they would go on strike April 29, stepping up a bid to thwart the South Korean government's efforts to sell off the machinery maker.

EPILOGUE Privatization remained on a hold for the remainder of the Roh administration. Lee Myeong-bak, however, appeared ready to restart the privatization process when he was elected president in Dec 2007.

Financial Reform Turns into a Quagmire: The state-run Chohung Bank, the nation's fourth largest lender, will be sold to Shinan Bank for 3.37 trillion won (US$2.81 billion). Currently, the state-run Korea Deposit Insurance Corp. holds the 80.04 percent stake in the bank which it would transfer to Shinan. The government will be required to cover up to 650 billion won in future losses, meaning that the real sale price, taking into consideration "indemnifications," stands at around 2.7 trillion won. The sale price matches the amount of public funds the government has injected into Chohung since 1998. Shinhan will pay cash for 51 percent of the government's holdings in Chohung, with the remainder being acquired through the exchange of its own stocks. However the 5,800-strong union in the company staged an indefinite general strike in mid-June 2003 causing a run on the bank as depositors withdrew their funds. The walkout forced the nation's fourth-largest lender to close nearly half of its 560 branches. Chohung employees feared the sale would result in mass layoffs and claimed the government was selling the bank for too low a price. (See Voice of the People for video footoage of strike.)

Some 4 trillion won in deposits drained out of the bank between 16 and 18 June 2003 -- an amount considered significant given the lender's total deposit volume of 35 trillion won, included the outflow of as much as 3 trillion won seen on June 18 alone. This forced the Bank of Korea to inject emergency funds worth 2 trillion won ($1.69 billion) into Chohung Bank to stave off a liquidity squeeze caused by the run on the bank -- but more may be required. The Bank of Korea (BOK) on 23 Jun 2003 planned to make another emergency loan of 3 trillion won (US$2.52 billion) to Chohung Bank to help the strike-ravaged financial institution overcome its liquidity shortage. (NOTE: A week after the strike ended, the Chohung Bank was able to repay the emergency loan for the Bank of Korea due to an upsurge in deposits and that the liquidity crisis was over.)

On 22 Jun 2003, the union ended its strike after the government promised to move in with force. After overnight negotiations with union leaders, government officials and executives from Chohung and Shinhan came up with an agreement promising there would be no layoffs. Union members voted in favor of the plan, which also pledged pay rises and a delay in the merger of Chohung Bank with Shinhan Financial's Shinhan Bank for at least three years. The deal did not address workers' concerns that the bank was being undersold. The eleventh-hour deal by Shinhan Financial Group and the Chohung Bank union received flak for compromising the rationale for mergers. Critics of the agreement, in particular, claimed that due to the vagueness of the wording of the clauses, the two sides and the government may have only put the issue on the back burner for the time being. To make matters even more bizarre, the union at Shinan Bank protested the conditions of the sale threatening strikes as well.

According to a Chosun Ilbo article on 24 June 2003, "Foreign investors and businessmen are losing faith in the Korean economy after the government failed to act firmly in dealing with the strike at Chohung Bank strike. The international eyes on the local economy have turned leery and foreigners are quick to criticize the government." The Seoul Japan Club (SJC) comprising 300 Japanese companies in Korea stated that the Korean government interfered with labor and management negotiations, including in the case of Doosan Heavy Industry, and resolved the disputes by siding with the labor unions. The SJC criticized the current government's policy, calling it an obstacle to foreign investment. A Chinese professor stated "the labor strife in Korea is belligerent and ideological, adding that it makes you think that the labor unions ignore the reality of capitalism."

President Roh Moo-hyun's administration came under pressure to end the standoff over Chohung's sale, which many people saw as a test of the government's determination to privatize banks. The government wants to sell its stakes, recoup its investments and counter criticism from foreign investors that it is influencing the banks' lending policy - a charge the government denied.

In June 2003 Korea and Russia finally agreed to settle long-standing debts of more than $2 billion owed by Moscow to Seoul, 90 percent of which is guaranteed by the domestic government. Criticism mounted over the Korean government's move to reverse its decision to repay domestic banks by 1 Sept. 2003 for their overdue loans to the former Russian government. As attempts over the past few years to renegotiate repayment terms had failed, the government had decided to first repay the banks before completing its repayment negotiations with Russia. Last year, the Finance Ministry delayed its repayment obligations by another year to Sept. 1, 2003 and said it would issue state bonds this year to repay the banks. However, once the negotiations were complete in June 2003, the government reversed itself.

The banks are strongly opposing any further delay in their repayment schedule, urging the government to abide by its earlier word. Some bank officials criticized the government's exercise of influence on the banks' management and its habit of blaming the banks when things go wrong. Some bank officials feel this incident shows why Korean banks do not want to cooperate with the government's restructuring drive -- the government's word is not binding.

Background: Korea provided $1.47 billion in loans to the former Soviet Union through its state and commercial banks in 1991 under an agreement signed in Sept of the previous year, when the two sides first established diplomatic relations. Of the $1.47 billion loan, $1 billion was made in cash by 10 Korean banks, including Woori Bank (formerly Hanvit Bank), Chohung Bank, Korea Exchange Bank and the state-run Korea Development Bank. The remaining $470 million was provided by the state-run Export-Import Bank of Korea on condition that the Russian government use the money for importing Korean consumer goods. Russia has so far paid back $460 million of the loans to Korea in the form of bartered aluminum, uranium, raw materials and military goods like helicopters. The Export-Import Bank of Korea took 70 percent of the retrieved money, while the 10 other banks divided the remainder. As a result, the former communist country currently owes $2.24 billion in overdue principal and interest to 10 Korean banks as of the end of May 2003, of which Seoul is obliged to cover 90 percent or $2.06 billion.

Conciliatory Position to Union Strikes: Roh's power base is the unions and when he capitulated to union demands in the railroad strike in April 2003, business experts said he sent out the wrong message to the unions. In May 2003, ROK truckers agreed to return to work after winning concessions from the government to end a week-long strike that had idled the world's third largest container port. Under the agreement, the government accepted almost all demands from unions including tax cuts and other measures to protect the interests of truckers. Initially, Roh and his aides vowed not to allow vested interests to challenge law and order. But a few days later, while he was visiting the United States, his administration made concessions to the strikers by promising to subsidize the increase in tax on their diesel purchases among other favors. (See Voice of the People for Video of Roh's Summit talks; Kwangju protests on 18 May; Trucker strikes in the nation.) That compromise encouraged bus, taxi and heavy vehicle drivers to demand the same benefits while threatening massive strikes. One can expect more strikes following the governments conciliatory positions. (See Korean Confederation of Trade Unions for homepage of the KFCTU and actions.)

Korean Federation of Trade Unions Demonstration (KFTU) (1 May 03)

The government also decided to seek passage of a bill on a union for public workers in 2003. The law, which supposedly contained major concessions to the union side, would go into effect in the first half of 2004 if passed by the National Assembly by the end of the year as planned. However, low-ranking civil servants were dissatisfied that the planned labor union failed to meet their demand for more labor rights. In addition, the Roh administration is pushing forward with implementation of the five-day work week.

On 23 Jun 2003, President Roh said that some of the recent labor union strikes were an attempt to "tame" the government, but that such walkouts are not acceptable and would be dealt with sternly. However, Roh stressed that even in the case of illegal strikes, the government should use maximum restraint in making the decision to use force to end unlawful collective action.

Subway union workers in major cities, including Incheon, Daegu and Busan, are planning to walk out today, demanding that the management hire more safety personnel to minimize safety-related accidents in the workplace. Unionists at the Korean National Railroad said that they will stage a strike 28 June 2003 in defiance of the government's move to pass a controversial "railroad reform bill" without its consent. (See "Privatization Plans Put on a Hold".) The Federation of Korean Trade Unions, an umbrella union group, also announced that it is planning an "indefinite" general strike in conjunction with local taxi and bus drivers starting from 30 June 2003. The government has indicated that it considers these strikes "illegal." Industrial observers warned that the strikes would deal a heavy blow to local transportation systems, causing public inconvenience and serious damage to the national economy.

In a related development, unionized workers at major automakers, including Hyundai Motor and Ssangyong Motor, are organizing a large-scale strike, which will start 25 June 2003. About 38,000 workers, the largest number in a single workplace strike ever, are expected to participate in the walkouts. Hyundai unions and management have been in talks for two months over wages and working conditions. Unions want an average 11% wage rise and a four-hour reduction to 40 hours in the working week. A Hyundai spokesman said the union had also demanded the right to take part in company decision-making. "They are making excessive demands," he said.

] The decision to strike followed a call by the Korean Confederation of Trade Unions (KCTU) for a nationwide walkout on 25 June 2003. The KCTU said 100,000 workers at 100 workplaces across South Korea would participate in the 25 Jun industrial action. Rallies in Seoul and some provincial cities are planned.

In early July 2003, member unions of the Korea Metal Worker's Federation and the Korean Chemical & Textile Workers' Federation planned to walk out, which was to be followed by another strike by the Korea Health & Medical Workers' Union on 11 July 2003.

Fearing serious repercussions for the economy, the nation's five largest business organizations, including the Federation of Korean Industries and the Korea Chamber of Commerce and Industry, issued a joint statement, urging the unionists to immediately suspend strike plans. The statement, jointly read by the heads of the five associations, expressed concerns that a string of nationwide strikes affecting the nation's industrial backbone would create economic chaos and catastrophe. "At this time of shrinking investment and opaque outlooks for exports and domestic consumption, simultaneous strikes by labor unions would throw the entire nation into confusion," the statement warned.

The get-tough talk appears to have had some effect on the unions as the key railway strike was settled quietly. Other strikes never took place -- being settled before the deadline. Some critical services like the Hospital Workers was settled quietly in July 2003 without a strike, but the Metal Workers union led by the Korean Confederation of Trade Unions started 4-hour walkouts in place of full-blown strikes.

Analysts have attributed spreading labor unrest in South Korea to the failure of President Roh's government to take tough action on labor issues. The Chohung Bank strike in June 2003 was widely seen as a success for unions as it resulted in higher wages and jobs being guaranteed for three years. According to a 23 Jun 2003 Reuters article, "With the economy already on the verge of entering its first recession in five years, more industrial disruption would dismay authorities and investors -- especially as a sovereign rating review by Fitch Ratings is due to begin on Wednesday. Analysts and fund managers have criticized President Roh Moo-hyun, a former labor lawyer, and his four-month-old government for taking a soft line on labor, arguing it has emboldened unions to demand higher pay and to block structural reforms potentially requiring layoffs."

A 14 Jul 2003 Newsweek article stated that Roh was pro-labor and used the term "Socialist" to describe him. It stated, "His young lieutenants openly defend the interests of workers over their bosses and soft European ideals over hard American models of capitalism. Their rise to power inspired the spring strikes, and it's not clear just when the mood in the presidential Blue House started to turn. But last month, amid rising economic losses, the Chinese ambassador to Seoul remarked that Koreans now tell him their country "is more socialist than China." This created a furor from the Blue House who demanded a retraction -- though none was given. Conservative newspapers continued to accuse Roh of being pro-labor by his constant interference in the labor-management process and failure to create a proper atmosphere of non-government intervention for negotiations.

After an on-and-off labor strike season, the unionized truckers called for a general strike that could possibly tie up import and export throughout the country beginning on 21 August 2003. South Korea's cement and other major industries girded for a truck drivers' strike that threatens the nation's overland cargo transportation. Calling for a hike in transportation fees, 30,000 truckers belonging to the Korea Cargo Transport Workers Union began their first collective action since May 2003 when their strike seriously disrupted shipments of electronics and other export goods. Burned by "transportation mayhem" in May 2003, cement, shipbuilding, car and other key industries prepared countermeasures to minimize the fallout from the strike. Hit hardest was the cement industry which depended heavily on trucks.

Truckers first launched a general strike in May 2003 and the administration made some concessions and promised to make further changes as asked for by the union. That strike cost exporters more than $450 million in losses. According to the union, the government delayed enforcement of the labor-management pact several times over the past three months. Truck drivers complain that their status, categorized as self-employed businessman by law, deprives them of basic worker rights, while in reality, they are under the control of truck companies through employment contracts. By mid-Sept 2003, the strike was failing because many truckers bolted the unions ranks and went back to work as "scabs."

The Automotive sector has taken a beating as well. Unionized workers at Daewoo Motor and GM Daewoo Automotive & Technology Co voted on 21 Aug 2003 to launch a strike over wages and other benefits. GM Daewoo is South Korea's third-largest auto maker and was created after General Motors Corp, the world's top auto maker, and partners took a majority stake in some of the assets of Daewoo Motor last year. The former Daewoo Motor Co was split into GM Daewoo and the remaining Daewoo, but the two companies have one labor union, the spokesman said. "A detailed strike plan hasn't yet been decided after more talks between the union and the management," GM Daewoo said. Earlier this month South Korea's largest car maker, Hyundai Motor, agreed to hike wages 8.6 percent, more than twice the inflation rate, after nearly seven weeks of strikes cost the nation's largest carmaker $1.2 billion in lost output. This pushed Hyundai wage rates over $20 an hour, closer to U.S. rates of $25.63 an hour. The Koreans workers are effectively pushing themselves out of the market.

After a series of strikes that crippled the shipping sector twice and railway strikes that also impacted the nation -- though for a shorter time -- the government has swung into action in defining "backbone industries" as "essential services sector." The following 7 Sept 2003 article is from the Donga Ilbo:

Labor Strikes to be Restricted at Large Companies

by Kyung-Joon Chung ( news91@donga.com)

The scope of so called "public utilities," in which labor disputes are forbidden, is to be drastically expanded. "According to the reform plans on laws and regulations regarding the relation between labor and management, announced on 4 Sept 2003, objects of negotiations and disputes will be expanded and the arbitration-before-litigation rule will be renounced. This may give rise to more frequent labor strikes," said a high-ranking official at the Labor Ministry. He also noted yesterday, "By expanding the scope of public utilities, the government aims to minimize potential inconveniences for the Korean public."

The law regulating labor unions and arbitration in labor-management disputes stipulates that public utilities are those areas which are either closely related to the daily lives of the Korean people or influential to the national economy.

In particular, public utilities refer to those business operations in which a 15-day arbitration is required prior to any labor strike (while other operations are required to give a 10-day arbitration process). This includes include passenger transportation, water, electricity, gas and petroleum, public medical services, banking, and broadcasting and communications services, etc.

Yet the scope of public utilities will be sharply expanded soon.

The four government-affiliated agencies, in charge of the social safety net--the National Pension Corporation, the National Health Insurance Corporation (NHIC), the Employment Security Center, and the Korea Labor Welfare Corporation (WELCO)--along with such economically important conglomerates as Hyundai Motor Company, will be part of the public utility sector and therefore become subject to special arbitration at the Labor Relations Commission (LRC).

According to the reform measure, the LRC has the authority to conduct a special arbitration, and thereby providing a ruling on which side between labor and management has a rational argument.

A Labor Ministry's official said, "the government is considering various ways to curb the worker's right to walkout by expanding the legal scope of public utilities."

According to the government reform plan, public utilities should issue a notice at least seven days before it wages a walkout without an arbitration process. Besides, the company can hire replacements from outside regardless of the legality of the strikes.

Even in strikes, crucial public services, such as emergency care at hospitals, public transportation, as well as electricity, gas, and water should not be disrupted.

If workers in the backbone service sector attend strikes, the LRC can order the protestors to return to work. Violators of the order will be subject to criminal punishment.

The emergency arbitration authority, which has been compared to "the blunt sword" for its dormant implementation, will take a more proactive role in labor disputes.

As a response, the Korean Federation of Trade Unions (KFTU) issued a statement yesterday, in which it claimed, "The government has decided to start with the public sector, aiming at crossing out workers' right to strike." The KFTU also said, "If the government further tries to deteriorate the laws and regulations related to labor-management, we will have to go on an all-out war against the government."

40-hour Work Week: The government bill, pending in the National Assembly in July 2003, called for a 50-percent pay cut for extra work hours, a compromise between respective proposals from labor and business communities. Both the GNP and MDP representatives had already agreed to pass the five-day workweek bill in August 2003 during the temporary session of the National Assembly Labor unions wanted to reduce the legal ceiling on weekly working hours to 40 from 44 without any cuts in pay or other compensations, while the business community is insisted on less pay and abbreviated holidays in return for shortened work hours. At present, Labor wants its cake (40-hour work week) and to eat it too (no decrease in holidays or overtime pay compensation). Industry is not totally satisfied with the 40-hour work week, but has agreed to support the government's bill.

Civic Groups to Ask Court to Outlaw Capital Relocation (July 2004) The future of the government's ambitious project to build a new administrative capital in a central region of the nation could hinge on the Constitutional Court. In June 2004, a group of South Korean civic activists is pushing to file a petition with the Constitutional Court to stop the government from relocating the administrative capital outside of Seoul. Lee Seog-yeon, an activist lawyer, said he and his fellow activists and lawyers are now collecting signatures from those who could be adversely affected by the transfer of the administrative capital from Seoul to South or North Chungcheong Province. The petition was to be submitted to the Constitutional Court before mid-July in the strongest attempt yet to thwart the high-profile plan to relocate the country's administrative capital from Seoul to either South or North Chungcheong province.

If six or more of the court's nine justices declare the relocation plan in breach of the constitution, the entire process including the selection of a site to house the new capital will be immediately suspended. That would be a heavy blow to President Roh Moo-hyun, who promised during his election campaign in 2002 to promote balanced regional development and increase the quality of life in other areas of the nation by building a new administrative capital.

The move proposed by Roh was announced upon his election as though it would be done with the consensus of the people in selection of the site, but was never done. Instead, it went from proposal into planning and then sectioning sections of land for the new administrative capital. Land prices in the area immediately sky-rocketed -- making a lot of land speculators rich. The government -- after a long delay -- then moved in to state no further land speculation would be allowed. The 16th National Assembly approved the capital relocation bill in December 2003 -- in an after-the-fact move. Then GNP, initially opposed to the project, then reversed itself out of fear of losing votes in the Chungcheong provinces in the run-up to April's general elections. The legislation took effect April 17. According to the Constitution, any petition must be submitted within 90 days of a law taking effect, meaning objection to the capital relocation will have to be raised at least before July 17.

After the April elections and Uri Party victory because of the impeachment backlash, the government and the ruling Uri Party agreed to move as many as 200 public institutions from Seoul to whataver city is chosen as the new capital. To build public support, the Roh administration started claiming that traffic would be reduced by 20 percent easing congestion. Activists countered that the population of Seoul would drop by 10 percent as business -- especially foreign businesses -- moved to the new capital.

However, the issue is lukewarm with most Koreans who do not have much interest in the subject. The Joongang Daily wrote an editorial stating that a referendum was required . "We have repeatedly expressed worries over the government's attitude of using blitz tactics in deciding on the plan, omitting the procedure of forming a social consensus." "The legitimacy of the plan is suspected, and an appeal to review the constitutionality of the plan was sent to the Constitutional Court. The government's one-sided promotion is the reason behind that. Especially, while the government explained that only the administrative capital will be moved, the plan now includes important offices of the legislature and the judiciary. It is nothing but cheating the people if the plan is upgraded and expanded to one that changes the nation's capital." With the US pullout, the editorial asked, "The cost of the move was quoted as 4 to 5 trillion won ($3.4 to $4.3 billion) during the campaign, but it has swollen to 45 trillion won and even over 100 trillion won. We will suffer from a heavy defense burden arising from the reduction of the U.S. forces in Korea. How can we finance the cost for the capital move on top of that?"

According to the Chosun Ilbo, "National Assembly, Supreme Court be Relocated to New Capital" (8 Jun 2004)

A total of 85 major government agencies have been tentatively picked to be relocated to the new capital. The Presidential Committee on Administrative Capital Relocation announced Tuesday that it has tentatively outlined plans for the relocation of state organizations. According to this plan, the commission would review and pass a vote to decide on the final number of state organizations to be relocated and submit the results to the president in July for approval. A total of 85 state-related organizations, which includes 74 governmental organizations and 11 constitutional institutions, have been selected. The 74 governmental organizations include: 11 organizations under the president, 13 units under the control of the prime minister, 48 central administrative institutions, and two independent organizations. A proposal to transfer constitutional institutions will be submitted to the National Assembly for consent. Out of 269 total units of state-related institutions, 59.4 percent or 143 have been reviewed for the relocation. A total of 23,614 public officials will be subject to the relocation.

Among 15 organizations under the direct control of the president, 11 of them have been picked for relocation, which includes the Board of Audit and Inspection, Civil Service Commission and the National Security Council. The National Intelligence Service, Presidential Truth Commission on Suspicious Deaths, Audit and Inspection Training Administration, and Central Officials' Training Institute were excepted from the relocation plan. Among 20 organizations under the direct control of the prime minister, 13 were chosen, including the Office for Government Policy Coordination, Fair Trade Commission, the Ombudsman of Korea, Ministry of Planning and Budget, the Ministry of Government Legislation, Korean Overseas Information Service, and the Ministry of Patriots & Veterans Affairs. The Financial Supervisory Commission was excepted from the list at the last minute.

Among 217 major ministries and affiliated institutions, 48 organizations will be relocated, including: the Secretariat to the Public Fund Oversight Committee of the Ministry of Finance and Economy, Office of South-North Dialogue of the Ministry of Unification, Ministry for Trade, the National Police Commission of the Ministry of Government Administration and Home Affairs, Korean Trade Commission of the Ministry of Commerce, Industry, and Energy, National Environmental Dispute Resolution Commission of the Ministry of Environment, Labor Relation Commission of the Labor Ministry, and the Civilian Aviation Safety Authority of the Ministry of Construction & Transportation. Two independent state organizations -- the Korean Broadcasting Commission and the National Human Rights Commission -- are also included for the relocation. Constitutional organizations assigned to relocate to the new capital are the National Assembly, National Assembly Secretariat, the National Assembly Library, Supreme Court, Constitutional Court and the National Election Commission.

The commission said that the relocation would take place in 2012, when the construction of the new administrative capital is finished, and complete the relocation by 2014.

Political Scandals: And then there are the scandals. The scandal over the payment of monies to North Korea embroiled Kim Dae-jung over $400 million the government offered the North secretly through Hyundai Merchant Marine. The payment preceded the historic 2001 summit meeting that eventually led to Kim Dae-jung receiving the Nobel Peace Prize. On 14 Feb 2003, President Kim Dae-jung apologized for the incident, but stated that the payments were part of a "payment schedule" that was prearranged between Hyundai and the North. It was admitted that the NIS -- Korean equivalent of the CIA -- aided in the transfer of the funds, but again stated that there was no illegality in the act. The Roh administration wrangled with the appointment of a special prosecutor finally succumbing to pressure to proceed. In June 2003, Roh refused to extend the independent counsel investigation, but the GNP controlled National Assembly passed a bill to appoint another independent counsel to follow up on leads. Roh vetoed the bill and the National Assembly was not able to muster the 3/4 majority to override the veto in August 2003.

Kim Dae-jung & Kim Jong-Il (13 May 2000)

Investigators have identified the North Korean bank account to which money from a South Korean conglomerate was deposited, possibly as a payoff for an inter-Korean summit three years ago. The Joonang Ilbo reported on 14 May 2003 that $200 million wired by Hyundai Merchant Marine just before the June 2000 inter-Korea summit went to three accounts held by DPRK, including one owned by Workers' Party, at the Macao branch of the Bank of China. This contradicts the statements made by senior aides to former President Kim Dae-jung, who said that ROK government merely facilitated a transfer by Hyundai to win development projects. The Hyundai transfer was allegedly funded by Korean Development Bank, a state institution, and former Hyundai and bank officials have alleged that the loan to Hyundai had merely been a cover for ROK government's payment to DPRK.

Kim Dae-jung

Investigators stated that it is certain that $100 million was earmarked as an incentive for the historic summit meeting. Lee Ki-ho, then a senior secretary for economic affairs, suggested a special loan to a Hyundai Group affiliate shortly before the 2000 summit according to Lee Keun-young, former chairman of the Financial Supervisory Commission and former governor of the Korea Development Bank. It was the first direct indication that the Blue House orchestrated the events that led to a large money transfer to North Korea -- money alleged to have in effect purchased the summit a few days later. Lee Ki-ho said that he was misunderstood. On 30 Jun 2003 he was arrested for abusing his power by pressuring a state-run bank to extend loans to Hyundai subsidiaries in June 2000. The investigation ended in June as Roh would not extend the time limit for the special prosecutor's investigation. Kim Dae-jung was not investigated -- and in point of fact, the investigation deliberately shied away from implicating him in the matter.

On 24 Jun 2003, the independent counsel team indicted three more high-profile figures, including a former presidential chief of staff and Hyundai firm chairman, Former Chief of Staff Park Jie-won, then Director of National Intelligence Service (NIS) Lim Dong-won, and Hyundai Asan Chairman Chung Mong-hun were indicted on charges varying from influence peddling to violations of foreign exchange control and inter-Korean exchanges laws. Independent Counsel Song Doo-hwan claimed on 25 Jun 2003 that the former Kim Dae-jung administration paid North Korea US$100 million to participate in the historic June 2000 inter-Korean summit. In concluding the 70-day probe into the payoff scandal, Song said former Culture and Tourism Minister Park Jie-won pledged to provide $100 million to the North on il 8 in 2000 when he was negotiating the summit with North Korean officials. However, Lim Dong-won, former head of the National Intelligence Service (NIS), said, "It was not a reward for the summit but economic assistance our government decided to provide to the North in consideration of North Korea's difficult situation at the time the agreement was reached to hold the inter-Korean summit."

Regardless the Kim administration shifted the payment burden onto Hyundai while arranging for the business group to obtain huge amounts of loans from the Korea Development Bank and remit the money to North Korea in an illegal manner. Song said former presidential adviser Park Jie-won had asked Chung Mong-hun, the chairman of Hyundai Asan, for help in making a $100 million payment to the DPRK a month before the summit in June 2000. Park was charged with abusing his authority, while Chung and Lim Dong-won, the previous head of the ROK's spy agency, were charged with violating foreign currency regulations, a statement from the special prosecutor's office said.

The charges will be brought before a court, although no date has been set yet, an official at the special prosecutors office told Reuters. The summit between the then ROK president, Kim Dae-jung, and the DPRK leader Kim Jong-il helped earn the ROK's Kim a Nobel peace prize. But critics, in particular the opposition, have said the DPRK's Kim only agreed to the summit because of the payments. The investigation ended when President Roh refused to extend the independent counsel investigation past its 70-day limit. The GNP vowed to enter a bill to appoint a new independent counsel. On 6 Jul 2003 the Prosecutor's Office announced it would pick up the investigation of the $15 billion won -- but would turn over the case to the independent counsel it it is appointed. (SEE Trial Begins for Three Indicted in the North Korean Pay-for-Summit Scandal for continuing details of trial.)

In August 2003 there was a tragic twist when Hyundai Asan Chairman, Chung Mong-Hun, who was on trial in connection with the illegal cash transfer to the DPRK in 2000, jumped to his death from his high-rise office building in downtown Seoul. Police said he committed suicide. On 27 Sep 2003 six former officials under Kim Dae-jung's administration were convicted of secretly transferring money to North Korea ahead of a historic 2000 summit, the first to be punished over the illegality of the money transfer. However, their sentences were suspended. The court sentenced Lee Ki-ho, a presidential economic adviser in the Kim government, to a three-year suspended term. Lim Dong-won, a former intelligence chief under Kim, received a suspended 18-month term. Kim Yoon-kyu, president of Hyundai Asan Corp., a Hyundai subsidiary that controls all Hyundai business in North Korea, got a suspended one-year sentence. Others convicted are Choi Kyu-baek, a former senior intelligence official, and two former top officials of the state-run Korea Development Bank - Lee Keun-young and Park Sang-bae. No conviction was held against Chung Mong-Hun because of his suicide.

In Dec 2003, the Seoul District Court sentenced Park Jie-won, a former presidential chief of staff, to 12 years in prison in addition to a fine of W14.7 billion, on charges of orchestrating the illegal money transfer to North Korea ahead of the inter-Korean summit in 2000 and for taking W15 billion in bribes from the Hyundai group. In handing down the ruling, the court said that the late Hyundai Asan chairman, Chung Mong-hun, Kim Young-wan, and former Hyundai Securities chairman Lee Il-chi gave credible testimonies when they stated Park received W15 billion from Hyundai in exchange for government approval for the group's casino and duty-free businesses. Park was also found guilty of illegally transferring money to North Korea. After accepting nearly W15 billion in bribes, Park placed most of the fund under the custody of Kim Young-wan and carried out careful money laundering for his personal use, the presiding judge said. Given the fact that Park once served as a government minister and as former president's closest aide, the news was a great shock to the people and the court can't help but to call him to account in a stern manner, the judge added. (SITE NOTE: On 17 May 2004, Park Jie-won, who was Kim's chief of staff, was ordered to pay 14.8 billion won (US$12.5 million) in fines by the Seoul High Court. He was sentenced to 20 years in jail for taking bribes from the Hyundai group and illegally transferring cash to North Korea before a historic inter-Korean summit in 2000.)

Though Kim Dae-jung was not investigated in his involvement in the scandal, the problems for Kim Dae-jung have gotten worse. MDP Rep. Kim Hong-il -- the only one of Kim Dae-jung's three sons NOT serving bribery sentences -- was to be indicted for taking bribes in the Nara bank bribery scheme. The convictions of the three indicted were upheld by the Supreme Court and their SUSPENDED sentences remained in effect.

Other former Kim Dae-jung presidential staff members have also been arrested for bribery. A Seoul court sentenced a former presidential chief of staff, Han Kwang-ok, to two years and six months in prison on 8 Sep 2003 on charges of receiving 110 million won (US$93,000) in bribes from a businessman. He was also fined 30 million won in the Seoul District Criminal Court ruling.

To make matters worse for Roh, in May 2003 two key aides in the Roh administration were accused of taking bribes. Roh apologized for the scandals without taking responsibility. However, there are claims that the funds to one aide was funneled into an organization that Roh set up. In an unprecedented move, the prosecution Sunday expressed regrets about the court's decision to reject an arrest warrant for Ahn Hee-jung, a close confidant to President Roh.

In Oct 2003 Lee Gwang-jae, the aide to President Roh Moo-hyun was accused of receiving billions of won from a former vice chairman of the Sun and Moon Group, but denied the allegations saying he was "set up." Like another Roh aide, Ahn Hee-jeong, who was indicted in connection with the Nara scandal, Lee is one of the core members close to the president. Lee resigned finally after it was revealed that he used the money to pay off personal debts and there were signs of money laundering.

In Mar 2004, the team of special prosecutors wrapped up the three-month graft probe of former aides to President Roh by indicting one ex-official and clearing two others of any wrongdoing. The team of 70 investigators empowered by parliament in December 2003 to open the investigation charged Roh's former presidential secretary for general affairs, Choi Do-Sul, with accepting 491 million won (425,200 dollars) in illegal funds ahead of the presidential election in December 2002. The Seoul District Court sentenced Choi on 27 May to two years in prison on charges of corruption and embezzlement. Choi Do-sul was also fined 1.6 billion won (US$1.4 million) and 300 million won in certificates of deposit in his possession were confiscated.

The probe cleared two others, Lee Kwang-Jae and Yang Gil-Seung. Both Lee, Roh's one-time secretary for information and policy monitoring, and Yang, a former personal secretary, were accused of accepting bribes from businessmen. Choi had already been indicted and jailed on separate charges of receiving 1.1 billion won in illegal political donations from a business conglomerate, the SK Group, just after the election.

All of these scandals are not new to Korea. A traditionally generous gift culture has often been cited as an excuse for improprieties in public offices. South Korea was placed 40th among 102 countries in the world in last year's Corruption Perception Index compiled by Transparency International (TI). Korea shared the rank with Costa Rica, Jordan and Mauritius, while Finland was listed at the top as the most clean country and Bangladesh at the bottom as the most corrupt. TI's Bribe Payers Index has pointed to high levels of bribery by firms from Russia, China, Taiwan and South Korea, closely followed by Italy, Malaysia, Japan, the United States and France.

To add more woe to Roh's back, the prosecution said on 28 May 2003 that it intended to indict leading members of President Roh's support group on charges of election law violations during last year's presidential campaign. Some 50 members of NoSaMo, an abbreviation of the Korean phrase for "People Who Love Roh Moo-hyun," face charges, including actors Moon Sung-keun and Myung Gye-nam, who actively supported Roh's campaign.

In July 2003 the Chairman of the MDP Chyung Dai-chul, was arrested for receiving bribes totalling 2 billion won from a real-estate developer of the Goodmorning City Co., Yoon Chang-yeol. The Chairman stated he provided about a billion won ($840,000) to Lee Sang-soo, then chief of the Election Polling Committee. According to the Chosun Ilbo Chyung admitted receiving a total of W400 million from the president of Goodmorning City, Yoon Chang-yeol. According to Chung of that amount, he received about W200 million for his campaigns right before the presidential elections last year, W100 million was used to sponsor the party, W50 million went to his supporters association and the other W50 was given to the central party's accountants but had not been processed yet. The problem is that much of the money used in political campaigns were above the limit provided by the law. The law states that all contributions must be receipted, but these were not. Prosecutors said they were investigating about 20 current and former legislators who may have been funded by Mr. Yoon.

Unfortunately, when Chyung tried to explain his personal political finances, he embroiled President Roh's presidential campaign last year. Mr. Roh portrayed his campaign as having been financed by 12 billion won, including 7.2 billion won from small private donations collected in piggy banks -- giving him the popular image of the "people's candidate." However, Chyung said his party collected 20 billion won ($17 million) from corporations that tarnishes that image. He also claimed to have raised 1 billion won of that sum himself. (NOTE: Chyung was convicted for illegal campaign funds and the conviction upheld by the Supreme Court. In June 2004, the prosecution requested eight years of imprisonment for Chyung and a fine of 2.5 billion won (US$2.16 million), the same amount he allegedly collected from business groups ahead of the election to help the campaign of then MDP presidential candidate Roh Moo-hyun.)

Chyung also suggested that there were bigger problems in the MDP's books. "I was told by Secretary-General Lee Sang-soo in January 2003 that the party had 3 to 4 billion won left. But now it's down to 1 billion won, and I don't know where the rest went," he said. According to the Joongang Ilbo on 12 July 2003, Chyung's statements forced "Mr. Lee to again revise upward his own statements about how much cash Mr. Chyung had pulled into the campaign. On Thursday, he said the amount was 400 million to 500 million won; yesterday, he revised the figure to 600 million to 700 million and then to 1 billion won a few hours later." It was feared the scandal would provide the impetus to split the MDP into a new party, the new party movement died in July 2003 when they realized that they could never win the 2004 elections if they split the party.

At the end of October 2003 the investigation indicated that Roh's 2002 campaign received some 6 billion won for a political poll from big business. The GNP apologized after the party's former campaign financier, Mr Choi Don Woong, admitted he had received 10 billion won (S$14.6 million) from SK Group before the 2002 elections. SK Group is the nation's third-largest conglomerate. The funding scandal has rocked the political establishment in South Korea and has already embroiled Mr Roh, who won the presidential polls on a pledge of honest government. The slush fund scandal engulfed all three main political parties including the GNP and its rivals, the Millennium Democratic Party and a new party composed of Mr Roh's loyalists. The investigation on political corruption continued with calls for a special investigator to launch a probe that would not exempt President Roh's involvement in bribes.

By Feb 2004, the GNP was found to have provided a total of 41 billion won in illicit funds to 227 district party chapters and its 16 branch offices located in various cities and provinces before the presidential election in 2002. President Roh Moo-hyun's camp was also found to have offered 4.25 billion won in illegal funds to its local chapters and branch offices in 2002.

The Supreme Public Prosecutors' Office said that it confirmed GNP and Roh's camp had spent illicit political funds collected from businesses in expenditures for election campaigns in the local chapters. The investigation was continuing in Feb 2004.

Then there was the ``hidden camera scandal'' in June 2003 involving former presidential personal secretary Yang Gil-seung who resigned after being videotaped in a night club being wined and dined in Chongju, North Chungchong Province by Lee Won-ho, an individual under investigation by the Prosecutor's office. Yang resigned over the incident. Prosecutor Kim Do-hun, 37, was arrested on 19 Aug 2003 and accused of accepting bribes from business competitors of Lee Won-ho named Hong. The husband and wife did the actual video-taping. However, on 22 Aug 2003 the case took a new twist as Kim said he has kept ``a diary and memos'' to prove his claim that there are forces within the prosecution protecting nightclub owner Lee Won-ho. The prosecution's internal investigation team, which attempted to close the case by arresting prosecutor Kim, dismissed his claim as ``groundless.'' However, several civic groups, including the People's Solidarity for Participatory Democracy, raised suspicions over the prosecution's alleged cover-up schemes. Kim's defense counsel, composed of some 30 colleagues in the same class of the state bar exam with Kim, told reporters after contacting Kim that the prosecution's investigation was a complete setup. In Kim's defense, lawyer Oh Song-gyun, representing the group, said, ``We have Kim's written statement and a memo-style investigative diary'' to verify Kim's claim. Kim is denying any involvement in the videotaping. He earlier claimed a senior prosecutor in charge of the ``hidden camera'' case was exerting influence to halt his investigation of Lee's alleged wrongdoings.

By Dec 2003 the indictments against corrupt officials were mounting especially people close to President Roh. Kang Geum-won, chairman of Changshin Textile and a major financial supporter of President Roh Moo-hyun, was indicted for giving around 400 million won ($336,000) in illegal funds to Ahn Hee-jung, an aide of Mr. Roh. Choi Do-sul, another aide of Mr. Roh who was under arrest for accepting 1.1 billion won from the SK Group, was indicted on an additional charge. Moon Byeong-ok, chairman of the resort company Sun & Moon Group, was indicted for giving 100 million won to Lee Kwang-jae, a former secretary to Mr. Roh, 30 million won to Yeo Taek-su, another secretary to Mr. Roh, and 20 million won to Shin Sang-woo, a former deputy National Assembly Speaker. In addition, Mr. Moon may have been involved in more illegal money allegations.

But the GNP is not without taint as well. The prosecution said it recently found out that the resort group's deputy chairwoman Kim Seong-rae who was detained and indicted for a fraud charge, delivered 1 billion won in illegal funds to the GNP. By Dec 2003 the prosecution had found out that the GNP used 51.1 billion won in illegal funds with much more illegal money left to be uncovered. Prosecutors suspect that the Roh camp used between 2.6 billion and 4.2 billion won in illegal funds prompting Roh's statement that he would resign if his party had over a tenth of the illegal funds of the GNP -- a statement that is strange as it says: "We're corrupt, but not as corrupt as the GNP." A sad statement about Korean politics.

In 2004, the GNP was in disarray over revelations of more and more corporate bribes in the 2002 election.

Then in Dec 2003 there was Kim Un-yong, a vice president of the International Olympic Committee and a lawmaker suspected of involvement in numerous bribery and corruption cases. $1.5 million in currency was found in his safes. Prosecutors said they have indications that the International Olympic Committee after the 2000 Games in Sydney, Australia, gave $3 million to the World Taekwondo Federation of which Mr. Kim is the chairman. The prosecutors suspect part of the sum went to Mr. Kim for his personal use. Prosecutors believe the money they found is part of that money. New corruption charges compound earlier charges against Mr. Kim that Mr. Kim had accepted bribes from a former Korea Olympic Committee member for giving him a seat on the committee. Sources said yesterday prosecutors believe that Mr. Kim received around 400 million won in bribes from former Korea Olympic Committee member Lee Gwang-tae in February 2001.

Mr. Kim was also allegedly involved in corrupt practices involving the Korea Taekwondo Association, another organization of which he is a former chairman. It was alleged he helped some less-qualified athletes at the expense of others. Added to the long list of suspicions, he is suspected of having obstructed Pyeongchang's bid to host the 2010 Winter Olympic Games to further his ambition to become an IOC vice president. He knew the committee would not choose a vice president from the country hosting the games.

Roh's minor officials also continued to take hits in Dec 2003. On 18 Dec Vice Defense Minister Yu Bu-sun admitted that he had received 2 million won (US$1,600) every month for two years in "traffic allowances" from a detained arms dealer. However, Yu insisted that the money was a simple favor with no stings attached and that he never peddled influence in exchange for the favor. If you believe that, we also have the Brooklyn Bridge shares still on sale. Son Young-law, ex-head of the National Tax Service (NTS), was put behind bars in Dec 2003 for abusing power in arranging for a local businessman who has close ties with President Roh Moo-hyun to pay less taxes.

Then we have the illegal visa scandals from Kim Dae-jung's tenure. Seoul prosecutors Thursday arrested former consul general to Hong Kong Lee Jung-jae on charges of selling South Korean visas to Chinese nationals ineligible to enter Korea. Lee, 52, the Hong Kong consul general from 1999 to 2001, illegally issued visas from early 2000 to 265 ethnic Korean-Chinese citizens and Chinese, whose formal visa applications had been rejected by the embassy. Lee is accused of pocketing some US$227,200 in return.

In a partial Cabinet reshuffle on 30 June 2004, Roh tapped Chung Dong-chae, a former journalist and three-term lawmaker of the ruling Uri Party, as the new culture and tourism minister. On 1 July Chung was accused of allegedly using his influence to help sway a Seoul university into hiring a certain professor before assuming the minister post. Instead President Roh accepted the resignation tendered by Vice Minister of Culture and Tourism Oh Jee-chul in connection with the influence-peddling scandal. The presidential office supposedly then was to look into the allegation that Oh attempted to pressure Seoul's Sung Kyun Kwan University to hire a Roh supporter as professor at the request of new Culture and Tourism Minister Chung Dong-chae.

Political Harassment from GNP: After Roh thumbed his nose at the National Assembly over the appointment of a "left-leaning" head for the NIS, the honeymoon was over. Korea Times stated that the major opposition Grand National Party's (GNP) filed a complaint with the prosecution in May 2003 claiming President Roh falsely accused then GNP presidential candidate Lee Hoi-chang's wife of accepting bribes during his presidential campaign. In the hotly contested election, there were a lot of claims from Lee's sons avoiding the draft to accusations of wrong-doing. An incumbent president cannot be indicted criminally except for cases involving invasion from the enemy and high treason, so this is simply harassment. In addition, the GNP is pressing for the Prosecutor to investigate Roh in the Nara Bank scandal even though Roh cannot be prosecuted as the President. However, this is an indication of his future political battles with sniping attacks.

In addition, President Roh is said to be the true owner of 29,000 sq. meters of woodlands in Jinyoung Village, South Gyeongsang Province instead of his older brother. According to Kim Ki-ho, chairman of Kimhae international country club, he sold the land for 250 million won in 1994 while Baek Seung-taek, the owner in the register book, claims that he paid about 30 million won for the land in 1996. The current market price of this property is said to be more than 200 million won and the fact that the current market price is more than 200 million gives more credence to Kim's assertions. The GNP wants an investigation. On 13 Aug 2003 Roh filed a libel suit against an opposition party lawmaker and four major Korean newspapers "a suit that was unprecedented for an incumbent president." He filed a libel suit against Representative Kim Moon-soo, an opposition party lawmaker who had raised rumors of Roh Geon-pyeong, the president's elder brother, being involved in property speculation. Mr. Roh sued the nation's four major dailies the Chosun, Dong-a, JoongAng and Hankook (Korea Times) Ilbos for libel for reporting on the claim without examining it closely. (See Actions against "Gangster" Press for media impacts.)

President Roh in retaliation created a furor within the National Assembly by sending to 5.3 million people on 21 May 2003 an email in which he called his political enemies "weeds." The letter, which was ostensibly a Parents Day greeting and went to most of the country's civil servants, said that "for political reform to succeed, the weeds must be removed."

After May 2003, the attacks by the GNP was relentless. The only respite was when the GNP was itself accused of accepting bribes from the SK group in Oct 2003. By Dec 2003, an aide to Lee Hoi-chong was indicted for accepting millions in illegal political contributions. It was reported that W4 billion won in cash of the total W15.2 billion the Samsung group gave to the campaign for Lee Hoi-chang was delivered to Choi Don-woong, a GNP lawmaker. The prosecutors are examining the GNP's seven bank accounts. According to prosecutors, Surh Jeong-woo, a legal advisor to Lee, also received 10 billion won in cash from Hyundai Motor, delivered in the back of a truck, on two occasions just before the election and gave the money to Lee's camp, along with the W10 billion won and W15 billion he collected from the Samsung and LG groups, respectively.

At the end of Dec 2003, the prosecutors continued their investigation of the MDP campaign slush fund scandal centering around Ahn Hee-jung, the closest aide of President Roh Moo-hyun. Ahn illegally collected money from businesses during last year's presidential election. Lee Kwang-jae, the former aide to Roh, said that he received W100 million from the chairman of the Sun & Moon group, Moon Byong-wook, just before the election and handed the money to Ahn. The W100 million was not deposited in the party's bank account. The Prosecutors reported, "While investigating Millennium Democratic Party, we also discovered evidence that the party received a considerable amount of money from businesses."

On 22 Apr a criminal court handed down a prison term to an executive on charges of bribery and embezzlement involving aides of President Roh Moo-hyun. The Seoul Central District Court sentenced Moon Byung-wook, chairman of the Sun & Moon Group, a tourism firm, to three years in prison and a fine of 3 billion won (US$2.5 million), saying his violations of law were too grave to avoid a heavy sentence. The fine was much more than the amount involved.

The accusations of slush funds continued into 2004. On 22 Apr it was reported that the Roh Moo-hyun camp is suspected of having received slush funds from a local construction firm ahead of the 2002 presidential election campaign. According to prosecutors, Suh Young-hoon, former leader of the Millennium Democratic Party (MDP), told them he handed over 600 million won (US$517,000) worth national housing bond to Chyung Dai-chul, who headed the Roh camp ahead of the presidential election campaign. At the same time the Prosecutor's Office stated that they would not push further investigations if the parties affected would turn in the funds to the government.

Split-up of MDP: The Millenium Democratic Party (MDP) has been ensnared by internal dissent over a new party since it lost the 24 April 2003 by-elections at the hands of the opposition Grand National Party (GNP). The GNP, based in the southeastern Gyeongsang province, holds 153 seats, 16 seats over a simple majority in the 272-member unicameral parliament. The MDP, which controls 101 seats, has its regional strength in the southwestern province of Jeolla. Young turks proposed the formation of a new party with Roh in the lead to face the next general elections in April 2004. The MDP was formed by Kim Dae-jung. The party's old guard, however, called for the convocation of a national convention to discuss the matter. Under party law, a national convention is the highest decision making body and old guards argue that this is the place to decide the continuation or dissolution of the party. Party insiders say conservatives would outnumber reformists in a party convention, while the central committee is dominated by Roh's allies.

In July 2003, the movement to disband the ruling MDP and start a new party seemed to die as Kim One-ki, leader of the "new faction" in the ruling party, said plans for the new party had been abandoned, explaining that an alliance of reformists would have no chance to win next year's general elections.

In August 2003, however, the pro-Roh group reopened creating a new party with Roh at the lead. The move came as little progress is being made over the opening of a national convention to chart the party's future course due to what they see as resistance from the old guard. The conservatives in the MDP have insisted on remodeling the scandal-ridden party, rather than disbanding it in favor of creating a new one.

At the beginning of August 2003, a group of reformist politicians broke away from the MDP to form their own party. At the end of Sept 2003, President Roh officially resigned from the MDP. MDP loyals lashed out against the president, saying he had betrayed them. The opposition GNP issued a statement saying the president had made the right choice, but suggested that he might be "pretending" to be non-affiliated and intends to join the new party that recently broke away from the MDP. Members of the new party, mostly young, reform-minded former MDP members, welcomed Mr. Roh's decision to leave the MDP, but they generally withheld any comment about the possibility that Mr. Roh would eventually preside under their flag. Mr. Roh registered in December 1997 with the National Congress for New Politics, a predecessor of the Millennium Democratic Party.

On 28 Oct 2003 the new party attempted to name itself "Our Party" (uri dang), but the problem is that all politicians refer to their parties as "our party" (uri dang). Immediately their were lampoons in the press as other parties ridiculed the name -- even threatening a law suit -- saying "Our Party must apologise to our party."

By Dec 2003, Uri Party leaders were discussing the pending independent counsel probe of alleged wrongdoings by former aides to President Roh Moo-hyun at the National Assembly in Seoul on Dec. 12. The de facto ruling party had objected to the appointment of an independent counsel to look into suspected bribe-taking and illegal political fundraising, insisting that the state prosecutor's office should handle such issues. The Uri Party has turned into an embarassment as the expected flood of politicians to it never materialized. Instead, the old MDP actually gained in popularity especially in the base of Roh's support in the Cholla area.

Autonomy: An Old Answer to New Problems -- Pass the Buck! In July 2003, the Roh administration has come up with an old answer to all of its massive problems -- especially with the Teachers' Unions, Police and Social Welfare. The Ministry of Government Administration and Home Affairs said on 6 Jul 2003 that it would propose sweeping decentralization legislation that would give provincial and city governments control over their police and education systems. It is an example of the "Buck does NOT stop here." The biggest problem with this proposal is that it refuses to recognize the root cause of autonomy -- lack of funding. In the past many responsibilities were shifted to the local levels, but the central government refused to transfer the funding to the local levels -- or even worse, took back the decision-making powers back from city/provincial governments so the programs could NOT function.

Autonomy started in the mid-1990s and rapidly progressed with the formation of city councils and the delegation of powers to the Provincial and City governments. The populace readily accepted -- and even welcomed -- most of the changes. However, the problems that came with autonomy were multiple as financing is centralized in the Seoul government. For example, responsibility for roads were supposed to be transferred to the city/provincial governments for their roads, but funding was retained by the central government until a FUTURE date when the tax structures were in place. As far as we know, that date stillo hasn't come yet. An example of how things can go wrong is epitomized by the Environmental Protection Agency (EPA) started in the mid-1990s to bring Korea up to global standards when "globalization" was the catch word for all Koreans. However, soon it became a hot potato as companies continued to pollute the rivers -- even forcing people to start drinking bottled water because they no longer trusted the treated water supplies. The problem with the EPA is that it had broad responsibilities -- like the U.S. agency, but none of the powers of enforcement. Later To rid itself of the EPA complaints, the central government transferred the EPA to the provincial government, BUT never transferred funding. Thus the EPA is now simply a paper tiger in Korea -- more of a ghost agency than anything. Thus the NGO Consumer Advocacy and Environmental groups sprang up. Ever wonder why the Saemangeum Project flared up? (SEE Saemangeum for details.)

Welfare systems would also be handled by local governments under the plan. The national system is in shambles as more and more people are entering the "gray generation." In the mid-1990s, they started a new Social Security System -- and like the U.S. -- the politicians immediately "raped" the funds until it was empty. However, people are still forced to "contribute" to this fund -- even foreigners working in the country. To be truthful, the government aid to individuals is minimal. Korea is noted for lacking a social support system -- thus in 1997-1998 IMF Crisis was extremely painful to the nation's working populace. To describe the "working homeless" living in the Seoul subways, aged living at bare subsistence levels in small one-room shanties would take volumes. If the central government can rid itself of this area, it can also transfer the blame for the missing support programs. At the same time, I would suspect the government would wish to retain the central funds as its "slush fund."

How the administration's proposal for the Police is the height of absurdity. The point is that the National Police is actually a combination of Paramilitary Riot Police -- conscripted through the national system of universal conscription for men -- and National Police. The Roh proposal is half-baked at best. It doesn't address promotion and recruitment in a realistic way. What policeman wants to spend his life in a country town with a population of 10,000 spread out over 50 square miles, while his brethen lucky enough to get assigned to a large city will live a more comfortable life -- and sarcastically able to gain "gifts" for their assistance. How can cities/towns/villages control the quality of their police force if the funding is controlled by the central government? The national police hierarchy only controls the precinct house head, but none of the tactical functions for which it is responsible as the promotion system -- and allegiance -- is controlled by the city/province? Morale within the national police would disintegrate. THIS PROPOSAL IS A BAD IDEA!!!

The National Police Agency would give up the right to appoint heads of local police agencies under the terms of the proposal but, to soothe ruffled feathers among Korea's senior national police, the national agency would still name the heads of police precinct houses. Lower-ranking members of the police hierarchy would be named and promoted by the city or provincial police agency. "The budget for the police force is 3 trillion won ($2.5 billion) this year, most of which would be allocated to local governments," a ministry official said. "But wages and other costs for the police in a local administration would have to be funded by additional local taxes because most local governments do not have enough financial resources for police protection." Thus the central government still controls the funding -- or lack of it -- by its budgeting function and gets to INCREASE taxes ostensibly to support the police, while the city/provincial governments are responsible for law and order. For the Roh administration this would be a win-win situation. For the people of Korea, it would be a disaster.

The educational decentralization would involve the appointment of deputy mayors or governors to run the educational system in each jurisdiction. They, along with the governor or mayor, would be responsible for all educational matters, including teacher appointments. Under the autonomy movement in the mid-1990s, a local board of education was formulated for all city-size units. Country schools fell under the provincial government. But in the end, the government didn't provide funding and the Board of Educations became neutered functions. People simply used it as a political stepping stone -- much like the City Councils. Notably, they would also be responsible for setting the educational curriculums in their jurisdiction. This will deflect any hate mail such as the anti-U.S. curriculums generated by the national teachers unions and published on the internet. As could be expected, the Korea Teachers and Educational Workers Union and the Korean Federation of Teachers Association immediately objected to the devolution of that kind of authority to regional governments. The two unions, which have been on opposite sides of disputes such as that over a national online educational database, agreed that the ministry's devolution plan would widen educational discrepancies across the nation. (SEE Continuing Education Problems over NEIS: for details on NEIS dispute.) The base of the worry is valid as the central government will retain control of the budgeting -- while shifting the responsibility for education to the city/province level. If the government allowed the tax structure to be devolved to the city/provinces then it would be sensible -- though there would be inequities between provincial country schools and large city schools. All the ills of the U.S. public school system would ensue, but it would be a lot better than having a national problem with schools being under funded at the central government level, but having all the responsibilities for the quality of education shucked off to the city/province level. Though we have not agreed with the teacher unions of both sides in their views, we support them on this issue.

The legislation will go to the National Assembly in Sept 2003. It is the worst of the worst ideas where Roh can simply point to the city/province levels for any failures in the system -- while retaining the funds in his national budget. For a politician this may seem like an ideal proposal, but expect an explosion of protests in September -- and if passed, some serious social revolts.

NIS and National Security Law: Then he alienated the National Assembly when he appointed a "left-leaning" individual, Ko Young-koo, to head the National Intelligence Service to "reform" it. The National Assembly voiced strong opposition as his nominee was considered as having no experience for the top intelligence job. Roh did not need the National Assembly approval and Roh angrily appointed him despite the opposition. What made matters worse was that the National Assembly stated that the proposed appointee to the NIS policy and planning seat was a "North Korean supporter." Roh appointed him anyway as well. Politically, the honeymoon was over.

To add more salt to the wound, the National Assembly Committee objected to the nomination of Suh Dong-man to the head of the NIS Planning and Coordination department because they openly claimed he was a "North Korean sympathizer." Roh brushed this aside and he was appointed. As the bulk of the intelligence that the South receives is from the U.S., we wonder what effect this will have on real-time intelligence and the future effectiveness of the NIS. It is quite certain that the U.S. counterparts in the CIA have duly noted these appointments. Rumors are that Washington is reluctant to pass sensitive intelligence to Seoul since Roh's appointments of "left-leaning" individuals to two spots in the NIS. The exchange of intelligence between the two countries is immensely important and if the process breaks down it could trigger a crisis.

It is evident that Roh is bound and determined to gut the National Security Law. However, the Constitutional Court ruled against a former Cheong Wa Dae official who sought to have part of the National Security Law, which stipulates punishment of those meeting or communicating with members of anti-state entities, declared unconstitutional. "The provision of the National Security Law (on punishment of those meeting or communicating with anti-state entities) does not violate the principle of punishment under law, as long as its application is restricted to cases which clearly involve threats to the very existence and security of the nation or have an adverse impact on the basic order of liberal democratic society," the court said.

On 24 May 2003, the Supreme Court Friday overturned a High Court decision that would have legalized banners calling for a repeal of the National Security Law and sent the case back to the lower court for fresh deliberation. The earlier ruling by the Seoul High Court ordered the Chuncheon municipal government to grant a South Korean man, identified only by his family name Nah, the right to use such banners as advertisement materials.

In the U.S., a defector from North Korea testified before the U.S. Congress claiming the NIS had warned him not to divulge information about WMD or the nuclear program to the U.S. interogators while in Korea in order to protect the "Sunshine Policy." He claimed he "escaped" from Korea to the U.S., but NIS officials had threatened his wife leading to her hospitalization. The recent defector who testified with a hood to the US Congress made the following statement to the Wall Street Journal:

Upon my arrival, I was debriefed by South Korea's National Intelligence Service, and occasionally put in the hands of unsophisticated American questioners in Seoul. Remarkably, the South Korean officials made it clear to me that I would be in danger if I were to speak out about the WMD programs I had worked on or the atrocities I had witnessed. It soon became obvious that they feared my testimony because it might jeopardize South Korea's "sunshine policy," which seeks to keep the North's repressive regime in power in order to avoid the economic consequences to the South were it to collapse.

Last year, facing increased pressures from the South Korean Intelligence Service to remain an invisible man, I decided to do all I could to escape from South Korea's hands. I obtained a passport under the pretense of traveling to Japan, and, with the aid of an underground-railroad activist, obtained a visa that brought me to the U.S. last month. While here, I put on a hood to protect my identity, held a press conference in Washington and testified before the Senate in open and closed sessions about what I know about Pyongyang's weapons of mass destruction.

The reaction to my activities on the part of the South Korean intelligence was immediate. My wife, a North Korean escapee who'd been captured by the Chinese and sent to a North Korean prison before escaping again, was subjected to threatening phone calls from police and intelligence officials that so terrorized her as to cause her collapse and hospitalization. Thanks to the intervention of Sens. Richard Lugar, Peter Fitzgerald and Daniel Akaka--to whom I shall remain forever grateful--South Korean officials have since been contacted about the treatment of my wife, and the harassment and intimidation have, for the moment, ceased.

In June 2003, Roh told the NIS to continue with its reforms aimed at making the nation's top spy agency politically neutral and enhancing its capability to confront new kinds of security threats. NIS Director Ko Young-koo outlined a series of targets including "depoliticizing" the NIS and transferring its investigative authority on domestic matters to police and prosecution, allowing the NIS to focus on anti-North Korea operations and overseas intelligence gathering. The president had instructed the agency to stop informing him of domestic politics, businesses and news media, which has been the NIS' major role in the past.

If one follows this line of thinking, you will see that there is no parallel development in the National Police to take over these types of investigative duties. Roh is effectively killing any domestic investigations into dissidents by removing the power from the NIS, but not building up any organization to assume these duties.

Exiled North Korean supporter, Song Du-yul, Returns In Oct 2003, Song Du-yul, an exiled professor in Germany, who had returned to Korea after 30 years was investigated by the National Assembly. Though a former high-level defector had identified him as a member of the North Korean Worker's Party politburo, he denied this. However, the NIS presented evidence that Song Du-yul was, as suspected, a secret member under the pseudonym "Kim Chol-su" and had received $150,000 in payment from Pyongyang. According to the report, Song knew that he was appointed as an alternative member of the politburo about May 1991, because a North Korean told him, and Song received $150,000 from Pyongyang since he first visited the North in 1973. The agency said that Song had met former North Korean leader Kim Il Sung in May 1991 and received $20,000-30,000 a year from Pyongyang, supposedly for research expenses, up until 1995. The intelligence service reported to the committee that Song had confessed about the membership and the money after he was shown related evidence. The service said that Song had visited North Korea 18 times, and that his last visit was seven months ago. Song attended the 1994 funeral of the former North Korean leader Kim Il Sung, where he wept and held hands with the current leader Kim Jong Il - the service presented photos of the scene to the committee. To an outsider, one starts to wonder why Song would return to Korea. Perhaps it was because the environment that Roh's pro-North policies had created. The opinion of the National Assembly information committee was that Song should be indicted without detention because he is a German citizen, and is not a danger to flee or destroy evidence.

The NIS was basically in favor of prosecuting Song, but attached an opinion that it would be possible to defer the prosecution given that Song is a German citizen and he has been wiling to abide by the South Korean law. One prosecutor said that the NIS had attached the opinion of deferring prosecution because Song may have joined the Worker's Party just to express dissent against South Korea's political situation in the 1970s, but now has said that he will leave the party and abide by the South Korean law. HOWEVER, this begs the question that the 1970s was thirty years ago -- and he continued to be a member and visiting the North as a supporter as late as 1995. Even if he left the party and apologized, it would be worthless.

GNP lawmakers on 1 Oct 2003 said based upon the investigation results that they were suspicious as to why the government had allowed Song to enter South Korea in the first place. They also argued that the police and prosecutors should investigate certain media companies, such as the Korea Broadcasting System, that wrongly described Song as a "democracy activist" and had been portraying Song as a democracy-fighter who was forced into exile by the dictatorial political regime in the South. On questions regarding KBS, Ko Young-koo, the "left-leaning" director of the NIS who was appointed by President Roh over the objections of the National Assembly, responded that he did not watch the programs on Song, and was never informed of them.

On 7 Oct 2003 raised the suspicion that senior government officials were involved in a plot to bring Song Doo-yul back to the country as a prelude to pardoning him for his past pro-Pyongyang activities. GNP Rep. Kim Yong-kap said, "Circumstantial evidence shows that Lee Jong-seok, deputy head of the National Security Council secretariat, and Suh Dong-man, head of the planning and coordination bureau of the National Intelligence Service were behind the forces that arranged Professor Song's return to the country." (NOTE: Suh Dong-man was considered a "North Korean sympathizer" when the National Assembly Committee objected to his appointment earlier in the year. Roh disregarded this objection and he was appointed.) GNP Rep. Cho Woong-kyu also said he was obliged to believe that the government had a plan to foster an atmosphere in which Song would be given an indulgence following a spurious interrogation by law enforcement authorities.

According to the Chosun Ilbo on 10 Oct 2003, the Korea Democracy Foundation, which invited the Korean-German scholar Song Du-yul to return from exile, asked high-ranking officials at Cheong Wa Dae in June 2003 to cooperate in arranging Song's entry, recent evidence showed. Song has since been found to be a secret member of the North Korean Workers Party. Supposedly, the chairman of the foundation, Park Hyung-kyu, sent a letter to President Roh Moo-hyun through the Cheong Wa Dae secretarial office asking for Song to be allowed to return to South Korea.

On 23 Oct 2003 Song was arrested and detained because he could "destroy evidence." Song stated his willingness to remain in Korea and "endure any hardships." However, the arrest created a stir with the German embassy as Song is a German citizen. The German embassy requested a meeting with Song and the Justice Minister. The request for a meeting with Song is based on the Vienna Convention on Consular Relations, which states that if a foreigner is arrested or detained, he has the right to notify and have an interview with his country's consul.

Song was sentenced to seven years in prison in late March 2004 for frequently visiting North Korea and holding membership in the communist country's Workers' Party in violation of South Korean security laws. In July 2004, a Seoul appellate court said that there was no evidence that Song Doo-yul was a member of the North Korean Workers' Party's powerful Politburo. His sentence was commuted to three years' imprisonment with five years' probation. His conviction is still on appeal to the Supreme Court.

Song's release was accompanied by some confusion, especially by Yonhap News, the official Korean government news agency, which seemed to be building a case for Song Du-il to return to Germany. Yonhap News, "No Travel Ban Sought for Dissident Professor Professor Song Doo-yul" (25 July 2004) stated, "SEOUL, July 25 (Yonhap) -- The prosecution will not seek to impose a travel ban on a Korean-born German professor who was acquitted of security law violations and freed from prison last week, prosecution officials said Sunday. Professor Song Doo-yul is awaiting a Supreme Court ruling on charges that he violated South Korea's draconian National Security Law." However, Donga Ilbo stated, "On July 21, Criminal Division 6 of the Seoul Court of Appeals (Presiding Judge Kim Yong-gyun) overturned the original ruling on Song Doo-yul, which sentenced him to seven years on the charge of violating the National Security Law, and commuted his sentence to just three years' imprisonment with five years' probation."

These articles conflicted. The first blurp is Yonhap News the OFFICIAL NEWS AGENCY for South Korea. This starts one to question its credibility as a NEWS agency. Notice wording "acquitted last week." The Donga Ilbo story below has his seven year conviction "overturned" and "commuted his sentence to just three years' imprisonment with five years' probation." This is NOT "acquitted." But what is really interesting is the statement that the prosecution will not put a travel ban on him. Song is a German citizen so if he "visits" his home in Germany and doesn't come back will there be extradition proceedings???

Song's leaving is the best way to make this recurring nightmare disappear. Simply get him out of the country. Roh wants it to happen because the original question that no one has answered is who REALLY invited him. We are not referring to the Korea Democracy Foundation, the group who invited Song to Korea. We are referring to the individuals in Cheong Wa Dae who were asked in June 2003 to cooperate in arranging Song's entry. The question is WHO in the Blue House stated that they would NOT prosecute Song when he came back. The next step is to quietly put him on a plane to Germany, then Roh can pardon him for his "crimes" and tell him not to return until the heat has died down. The truth remains hidden and everyone is happy.

Peace and Prosperity Policy: The Roh opened his dialogue with the North, promising that Korea would play a major role in the nuclear disarmament. Unfortunately, North Korea told South Korea to keep passing the food and money, but the nuclear issue was none of their business. In order to save face, Roh rationalized this slap in the face by saying it was "in South Korea's interest" to await the results of 23 April 2003 U.S-China-DPRK negotiations. After the negotiations were stalled by North Korea's revelation about processing the plutonium, Roh expressed "frustration" over the United States' "delay" in getting talks back on track. However, by doing so, he has recognized that only the U.S. and North Korea can resolve the conflict and the South has been relegated to a supporting role — eliminating a "major" leadership role for himself. Roh said during a televised debate on the ROK's MBC TV on 1 May 2003, "Whether we participate or not is not important, but how our interests are realized and reflected is important."

Roh has stubbornly adhered to former President Kim Dae-jung's failed Sunshine Policy -- now renamed the Peace and Prosperity Policy. The conciliatory approach aimed at currying Pyongyang's favor flies in the face of U.S. insistence on isolating the North. America sought to isolate North Korea economically, but South Korea continued to pump in financial and humanitarian aid. Fertilizer shipments will be sent to the North in June 2003. In May 2003 the South continued its ministerial talks with the North over economic programs. The North usually comes to the negotiation table to get food aid from the South.

After the May 2003 US-ROK summit, the Roh administration tied future economic aid programs to resolution of the nuclear dismantling. South and North Korea dealt with the reconnection of border-crossing railways and roads, the establishment of an industrial complex in Kaeseong and an inter-Korean tourism project to the North's Mt. Geumgang. The Gyeongui Line, a railway connecting North Korea's northwestern city of Sinuijui and South Korea, will also ensure smooth business with Seoul. South Korea has high hopes for the development of North Korea's Kaeseong Industrial Complex, a special zone for foreign investors, as a key export area. However, the area is lacking in infrastructure and will require massive investment and many think it will turn into a quagmire that will suck up more and more monies from the South as the North keeps attaching caveats to the construction.

The Roh administration has made no changes to the principle of sticking with the sunshine policy of engaging North Korea -- other than changing the name to Peace and Prosperity Policy. "The Participatory Government (of President Roh) made no changes to the principle of pursuing the sunshine policy," said Ra Jong-yil, senior presidential adviser on national security, during a KBS radio program on 19 May 2003. President Roh said that humanitarian aid to North Korea should go ahead despite tension over Pyongyang's nuclear programs. The government is seen to be taking the two-track approach of linking inter-Korean exchanges to the progress of the nuclear issue while continuing food and other aid to the North regardless of the political situation.

The opening of the railway and highway links between the Koreas were significant, but the North sought to make the DMZ crossing area a zone not controlled under the UNC treaty for the DMZ. The North attempted to drive a wedge between the U.S. and South Korea. According to the tri-national agreement, the U.S-Japan-Korea were to have a unified policy, but Roh chose to go his own way. Roh undermined Washington's hand in negotiations by requesting that the U.S. rule out a military option with the North. Even after being repeatedly rebuked by the North, Roh continues to pursue the dialogue option with the North.

The Roh administration has also been reluctant to criticize Kim Jong-il's abysmal human rights record for fear of antagonizing Pyongyang. When the UN Forum condemned the North in April 2003, the South abstained out of fear of antagonizing the North. This resulted in widespread international condemnation of the South being hypocritical in its human rights stance.

In June 2003, the U.S. called on the U.N. Security Council (UNSC) to adopt a statement urging North Korea to scrap its nuclear arms program. "We have been exploring the possibility of a presidential statement, as a means to convey authoritatively and unequivocally, the international community's concern to Pyongyang," said State Department spokesman Philip Reeker. However, South Korea on the five permanent members of the UNSC, including the United States, to be cautious in the timing of a UNSC presidential statement on North Korea's nuclear arms program. The Seoul government has reaffirmed its stance that while it recognizes the need for the U.N. Security Council to discuss the standoff over the North's nuclear ambitions, its timing should be carefully considered. In other words, the Roh administration still doesn't want anyone to upset its "dialogue" with the North.

In April 2004, the government has decided to abstain AGAIN in a vote for a resolution on the North Korean human rights situation at the U.N. Human Rights Commission meeting in Geneva, Switzerland. The ROK National Security Council adopted the foreign ministry's suggestion that South Korean delegates attend the meeting but do not vote.

Dana Summers Orlando Sentinel (May 03)

After the 15 May 2003 summit there were still differences of opinion about economic aid given to the North, though the U.S. did not object to humanitarian aid. Roh said on PBS Newshour. "That is if the North Korea receives security guarantees and if it receives an opportunity to reform and open up its economy, then there is a high likelihood that it will be willing to renounce its nuclear program." However, US national security advisor Condoleezza Rice said before Bush and Roh met that the administration was opposed to such an approach. "Our policy toward North Korea can really be summed up as follows: no one should be willing to give into the kind of blackmail that the North Koreans have been practicing on the world for a number of years now, especially not the U.S."

Though Roh continued with the fifth economic talks with North Korea in May 2003, there was a change as in the ROK strategy. In the past, the ROK took a conciliatory position of overlooking the nuclear problem to further inter-Korean dialogue. However, in the ministerial-level economic discussions in May 2003, the ROK tied the request for food aid to the nuclear issue and accountability for the food. In a sign of hardening ROK public opinion, a poll of 1,000 people published on 20 May 2003 by the Korea Information Service said 88.5 percent backed linking economic aid to the DPRK nuclear impasse. It also appears that the Kim Jong-il's Seoul visit card appears to be dead as President Roh no longer sees any political value to the visit.

As was expected when the South tied economic packages to the nuclear crisis, the inter-Korean talks on economic cooperation came to a standstill after North Korea threatened to bring an "unspeakable disaster" to South Korea accusing it of siding with the United States in the dispute over the North's nuclear programs. The South demanded explanation of the threat of "unspeakable disaster" or an apology. The joint economic projects, including inter-Korean cross-border rail and road links, joint flood prevention systems and a plan to build an industrial park in Kaeseong were shelved. Also as expected, the South continued to provide aid to the North. A shipment of 400,000 tons of rice was made to fill a North Korean request to cope with its poor harvest, but "South Korean negotiators made it clear that the rice was not being sent for free, but on a long-term loan basis." The end result is that North Korea still got what it wanted knowing that "long-term loan" is negotiable -- and the Roh government took the funds from the "Inter-Korea" budget to pay for the rice. The Roh government and the ruling MDP party decided on 3 June 2003 to set aside 760 billion won (US$630.8 million) for South Korea's planned provision of 400,000 tons of rice aid to North Korea.

However, in July 2003 the Roh government was forced to bite its tongue and identify North Korea as the "main enemy" -- primarily for budget purposes as new defense systems cannot be fielded without justification. In the past, the government ceased to release its MND White Paper on the status of the military to not provoke the North. But this is only "words" as the South has continued with its joint programs -- such as the Universiad scheduled for Taegu with North Korean participation, the family visits, opening of two railway lines and continued negotiations on Kaesong Special Zone participation. The Kaesong Special Zone land prices will be subsidized by a South Korean investment of W109.5 billion in infrastructure works -- as North Korea is virtually bankrupt. Pyongyang wants US$8 in land rental fee per each pyeong (3.3 sq meter). The sale of land plots in the industrial complex is to begin in the first half of next year, and firms are to begin to move in around 2006. Nothing's really changed.

On 6 Jul 2003 Seoul announced that it would provide railroad tracks and other material and equipment worth about 60 billion won ($51 million) to North Korea to help it rebuild its sections of railroad and highways across the Demilitarized Zone. South Korea will provide signaling and communication systems needed to operate the cross-border railway to North Korea. The equipment is being offered at no cost. The two Koreas have agreed that the railway will use systems designed and produced by the South.

Trusted U.S. Supporter during Iraq War? During the Iraq War, the ROK decided to send non-combatant troops to Iraq for reconstruction. Immediately there were cries of outrage from the anti-war groups. Again the anti-Americanism reared its head -- this time aimed at Colin Powell, Donald Rumsfield, and George Bush. The flag burnings that were banned, suddenly became fashionable again along with the same songs, chants and mass anti-Americanism hysteria. Roh claimed the war was "unjustified" and stressed that he had suffered great anguish in reaching his decision. In Roh's speech to the National Assembly, Roh basically stated that he was "forced" to send ROK troops because to not do so would imperil the safety of South Korea. He openly stated that he was backmailed by the U.S. to do it. Immediately, his speech was retranslated to a less offensive one -- and finally into a complete work-over that appeared on the Cheong Wa Dae website. This is the Roh technique -- to stick his foot in his mouth while playing up to his union-student liberal base; claim he was misquoted; and then rewrite what he "said" into a say-nothing translation. (SEE Iraq War & Korean Perspective of Iraq War for Iraq and Korea daily events with emphasis on daily Korean anti-War/anti-American protests -- and the various translations of Roh's speech.)

Anti-War Protest (11 Apr 03)

NGO groups anti-Americanism and Opposition demonstrations: Roh rode into office on the coat tails of the anti-Americanism that was rampant in 2002. However, the accident and wishes to renegotiate the SOFA lost its steam in 2003 and the NGO groups became fractured. With the Iraq War, the anti-War element stepped to the forefront and anti-Americanism flared up again. However, the Iraq War was very short and casualties were not as great as anticipated and soon took the wind out of the sails for the movement. The latest element to step forward has been the unification movement. Working under a cover group of NGO organizations, they provide cross support for demonstrations. (See Protests (2003) for details of protests.)

The Unification rallies started up again in May 2003, but with a new twist in blaming the U.S. for keeping the Korea's divided. The protests have a definite anti-American ring to them. Part of these rallies were the blaming of the U.S. for mass killings during the Korean war. Old people marched demanding answers to the supposed massacres committed by the U.S.. Part of this hysteria was stirred up by President Roh who apologized for the Cheju Island massacres that occurred before the Korean War. Hoping to resurrect the inquiries of Nogori -- old people marched to demand explanations of the supposed murders during the war. Interestingly, the Koreans are not marching over the massacre of 3,000 prisoners in Chonju by South Korean constabulary as they were retreating from the North Koreans. This was on TV in May 2003.

Unification Rally Blaming U.S. for Division of Korea and Mass Murders (25 May 03)

However, due to the nuclear crisis, a grass roots conservative movement has risen that is anti-North Korea -- and pro-US in that it provides its defense umbrella to Korea. This has turned out to be a generational split in the demographics as the anti-North demonstrations have been made up of primarily by older, conservative elements including religious organizations, military organizations and opposition political groups. The appearance of this group has eliminated Roh's claims to reflect the voice of the people in his North Korean engagement policies. In fact, he won the election with only 52% of the vote -- in an election with one of the lowest voter turnouts in history.

Anti-North Korea Rally (19 Apr 03)

Roh Questions Removal of USFK: In Dec 2002, he met with the Chiefs of Staff for the military and broached the question whether the ROK could do without the USFK for its defense. The answer was a blunt "no" -- as South is on about 68% parity with North Korea despite upgrades in its weaponry. The South's edge comes from the high-tech weaponry and intelligence that the U.S. provides -- as well as the promised 650,000 promised follow-on troops by the U.S. Undetered by these words, after he took office in February 2003 he ordered the Ministry of Defense to draw up a plan to "prepare for defense operations without the U.S.," . The plan was hastily assembled and presented in May 2003 with the same conclusions -- meaning that the USFK needed time to build up its forces, but the cost would be an annual $20 billion increase in the budget. The realistic option was to reverse his attitude and press to keep the USFK in place. However, by this time, Roh's words and the anti-American feelings against the USFK had started a backlash in the U.S. government about pulling the USFK out of Korea.

But Roh's speeches to outline his military views were very strange. He has openly questioned why the U.S. would control Korean troops in time of war. Immediately the Ministry of Defense issued a statement that stated that President Roh was wrong in that he DID control the ROK forces as part of a controlling body of leaders from nations contributing troops to Korea's defense. The Combined Army commander took his orders from them. But Roh did not give up and continued this in the press, openly playing to public sentiment. This raised doubts of his being a reliable ally. However, on 21 Jun 2003 Roh stated that he didn't expect the U.S. military to transfer its war-time command of the Korean armed forces within his tenure, adding that the issue will be dealt with as a long-term goal. This was a face-saving statement, but he left the same negative impression in the minds of the Koreans. He continued to stress the need for the nation to beef up its military capability to be fully responsible for its own defense with military alliances and multilateral security arrangements as complementary to the Korean defense system.

In addition, in March he met with a group of newly promoted generals and stated that he saw his support for changes coming from field grade officers -- and NOT the generals. He stated that the generals tend to become part of the bureaucracy and were resistant to change -- implying the new generals were expected not to fight him in his reforms. These were dangerous words from the Commander in Chief of the ROK military. On 1 May 2003, Roh commented on TV that the perception of the Korean people that they need the United States for defense is a "problem."

Then in March 2003, Donald Rumsfield stated that he thought the U.S. should center their operations around two hubs -- Osan and Taegu-Pusan. (See Relocation of USFK.) This sent shock waves, denials, mumblings and total panic amongst the Koreans. The negotiations to start the relocation of the 2d ID met an immediate roadblock as the Roh administration openly admitted that they wanted the U.S. "tripwire" on the DMZ. The USFK solidified its position that it wanted to relocate off of the DMZ -- COMPLETELY -- as well as give up its role at the Joint Security Area. The difference of views was elevated to President Roh's summit in May with President Bush, but nothing was resolved.

The US will continue to press for relocation. After the summit in May 2003, the joint communique said little of this issue, but Donald Rumsfield immediately stated that he held the option open -- meaning that the U.S. had NOT changed its mind about relocation and restructuring/reducing the forces. The joint statement said, "The two leaders agreed to work out plans to consolidate US forces around key hubs and to relocate the Yongsan garrison at an early date." It added, "President Bush pledged to consult closely with President Roh on the appropriate posture of (US forces in Korea) during the transition to a more capable and sustainable US military presence on the peninsula." (See Relocation of USFK.)

ROK-US Summit (May 14) Impacts: President Roh's White House summit skimmed over differences in how to thwart the DPRK's nuclear quest. Basically the summit was of little substance and simply papered over the differences between the two countries on the approach to North Korea. In effect, the summit was nothing more than a photo-opportunity. The joint communique stressed the U.S. and South Korea were united on the fundamentals of the DPRK question, despite clear differences of approach. It was issued after discussing issues of ROK-US alliances, the US Army resided in ROK, the DPRK nuclear issue, and establishing the "Entire Partnership" between two countries. (See Relocation of USFK for details confused wording of USFK relocation from summit.) Unfortunately soon after Roh's return to Korea, the papered over differences started to show through as Roh continued his "dialogue" and support of the North. The statement consisted of four parts.

Roh-Bush at Summit (15 May 03)

On the DPRK nuclear issue, the two sides decided to reinforce negotiations and strive to resolve the issue peacefully, while stressing the principle of multi-lateral channels. Both sides agreed that the "Beijing Talk" channel should be continued. The statement stressed that ROK and Japan are indispensable roles in resolving the nuclear issue, and PRC and Russia should play a constructive role. The statement forbids DPRK from developing nuclear weapons. On issue of DPRK-ROK communications and co-operations, the statement said they will adjust measures according to the development of the DPRK nuclear issue. The summit did not address policy differences, nor did it touch on tough questions that might arise if diplomacy with the North fails.

The following is the full text of a statement issued Wednesday by South Korean President Roh Moo-hyun and U.S. President George W. Bush after their summit meeting at the White House.

* * * * * * * * * *

On May 14, 2003, President George W. Bush of the United States of America and President Roh Moo-hyun of the Republic of Korea held a summit meeting at the White House in Washington, D.C. Noting that 2003 marks the fiftieth anniversary of the U.S.-ROK Mutual Defense Treaty, the two leaders pledged to work together to promote the values of democracy, human rights and market economy shared by the people of both nations and to build a comprehensive and dynamic alliance relationship for continued peace and prosperity on the Korean Peninsula and in Northeast Asia.

The U.S.-ROK Alliance

President Bush and President Roh welcomed the fiftieth anniversary of the U.S.-ROK alliance and paid tribute to those who have contributed to the alliance, particularly the Korean host communities and the members of U.S. Forces Korea (USFK) who have devoted themselves to the defense of peace and freedom on the peninsula. President Bush reaffirmed the U.S. commitment to a robust forward presence on the peninsula and in the Asia- Pacific region. The two leaders pledged to work closely together to modernize the U.S.-ROK alliance, taking advantage of technology to transform both nations' forces and enhance their capabilities to meet emerging threats.

In the context of modernizing the alliance, the two leaders agreed to work out plans to consolidate U.S. forces around key hubs and to relocate the Yongsan garrison at an early date. President Bush pledged to consult closely with President Roh on the appropriate posture for USFK during the transition to a more capable and sustainable U.S. military presence on the peninsula. They shared the view that the relocation of U.S. bases north of the Han River should be pursued, taking careful account of the political, economic and security situation on the peninsula and in Northeast Asia. The two leaders also noted the opportunity provided by the Republic of Korea's growing national strength to continue expanding the role of the ROK armed forces in defending the Korean Peninsula.

President Bush and President Roh welcomed the growing bilateral U.S.-ROK cooperation on international security challenges beyond the Korean Peninsula. President Bush thanked President Roh for his support on Iraq and welcomed the Republic of Korea's decision to deploy medical and construction units and undertake other efforts to assist with post-conflict humanitarian assistance and reconstruction in Iraq. President Roh expressed his support for U.S. and international efforts to establish lasting peace and security in the Middle East. The two leaders also reviewed progress and cooperation in the war on terror, noting the contribution of ROK forces to Operation Enduring Freedom and Afghan reconstruction.

To commemorate the fiftieth anniversary of the alliance, the two Presidents welcomed the convening of forums of experts to conduct discussions on the future of U.S.-ROK relations and to generate fresh ideas for both governments.

North Korea

President Bush and President Roh reaffirmed that they will not tolerate nuclear weapons in North Korea. They noted with serious concern North Korea's statements about reprocessing, possession of nuclear weapons, and its threat to demonstrate or transfer these weapons. They stressed that escalatory moves by North Korea will only lead to its greater isolation and a more desperate situation in the North.

Both leaders reiterated their strong commitment to work for the complete, verifiable and irreversible elimination of North Korea's nuclear weapons program through peaceful means based on international cooperation. They welcomed the role played by China at the 23-25 April 2003 trilateral talks in Beijing. They agreed that the Republic of Korea and Japan are essential for a successful and comprehensive settlement and that Russia and other nations can also play a constructive role in multilateral diplomacy. While noting that increased threats to peace and stability on the peninsula would require consideration of further steps, they expressed confidence that a peaceful resolution can be achieved.

Noting that the United States and the Republic of Korea are the two leading donors of humanitarian food assistance to North Korea, the two Presidents reaffirmed that humanitarian assistance is provided without linkage to political developments and noted the need to ensure that the assistance goes to those in need.

President Bush stressed that North Korea's nuclear programs stand in the way of the bold approach and the ability of the international community to consider comprehensive steps to assist the many needs of the North Korean people.

President Roh outlined his Peace and Prosperity Policy and President Bush reiterated his support for the process of South-North reconciliation. President Bush noted that the Republic of Korea has used this dialogue channel to call upon the North to resolve the nuclear issue. President Roh stated that future inter-Korean exchanges and cooperation will be conducted in light of developments on the North Korean nuclear issue. The two leaders reaffirmed their commitment to maintaining close coordination between the U.S. and ROK governments on this issue as well as in trilateral consultations with Japan.

Economic Relations

The two leaders agreed on the importance of working together to promote prosperity in their two countries, in the region, and around the world. They agreed that Korea's economic fundamentals are strong and expressed high confidence in the prospects for continued increases in trade, investment and growth in the Republic of Korea. President Bush welcomed and supported President Roh's commitment to continued structural reform of the Korean economy and his goal of making Korea a regional hub for trade, finance, and investment in Northeast Asia. The two leaders agreed that progress on open trade, investment, and transparency are essential to making this hub concept a reality, and recognized the important role of the private sector in this effort.

The two leaders expressed a desire for enhanced bilateral economic cooperation and reaffirmed their commitment to resolve bilateral trade issues through consultation, and agreed to explore ways to further strengthen the already close economic and trade partnership. Recognizing the importance of global trade liberalization, the two leaders expressed their determination to work together to achieve a successful conclusion of the Doha Development Agenda. The two leaders also agreed to strengthen cooperation in the APEC forum.

Toward a Full Partnership

Taking note of the one hundredth anniversary of Korean immigration to the United States, President Bush conveyed his deep respect not only for the contributions of Korean-Americans to American society but also for the ideals of democracy, peace and prosperity realized by the citizens of the Republic of Korea. President Roh extended his appreciation to the U.S. government and its people for all that has been done to help Korean-Americans realize their dreams in American society.

President Bush and President Roh highlighted the importance of increasing bilateral cooperation across a broad range of global issues. In this context, the two leaders welcomed U.S. and ROK cooperation in the International Thermonuclear Experimental Reactor (ITER) project, in the Global Forum on Corruption to be held in Seoul later this month, and on other efforts to improve the environment and combat crime and infectious diseases around the globe.

The two leaders agreed that their frequent telephone calls since President Roh's election in December and their substantial discussion in Washington have built a personal foundation of mutual trust and respect that will enhance U.S.-ROK coordination on North Korea and other challenges in the months and years ahead.

President Roh thanked President Bush for his hospitality and invited him to make a return visit to Seoul at his convenience. President Bush said he looked forward to another visit to the Republic of Korea.

Can a Leopard Change its Spots? The summit seemed to be more fluff than substance. Roh went to the U.S. to do some serious fence-mending and hopefully to repair his image as an anti-American radical. The Korea Times stated, "The opposition parties applauded Roh's adoption of pro-American agenda with a great dose of surprise, but those who supported Roh for his progressive agenda were rightfully disappointed with Roh and resented their political idol. Internet users, mainly young and progressive people, posted angry remarks and attacked Roh on the Internet for going back on his word and kowtowing to the U.S. His fans' reactions were understandable because they had expected Roh to be a James Dean but found a Cary Grant in him, instead. Questioned on how he felt about public wrath raised for his political transformation during a press conference on his way back, Roh said he didn't care, wondering aloud what if he had spoken ill of U.S. and his summit with Bush proved to be less successful than it was." Only time will tell whether he succeeded, but to many they feel that Roh was only making empty promises as a politician.

Korea Herald stated that Roh's statements during his U.S. visit took a dramatic turn from his past comments emphasizing an independent stance on the key ally of South Korea, has perplexed his supporters and critics as well. Many of his supporters have expressed their anger with Roh's pro-American remarks, denouncing them as departing from his professed principles and threatening inter-Korean relations. Experts indicate Roh appears to have chosen a realistic solution to the North Korean issue to secure national interests, based on the acknowledgement of U.S. power. However, young supporters of Roh have condemned him for "kowtowing" to the U.S.

President Roh defended his turnaround in his stance toward the United States as "necessary to fit reality." On 18 May 2003, the 23rd anniversary of a pro-democracy civic uprising in 1980 in Kwangju, about 100 students at Chonnam National University shouted slogans denouncing the pro-American statements Roh made during his first U.S. visit. "You may have something to criticize about the United States but the reality required me to forge friendly ties between South Korea and the United States," Roh said during a lecture at a university in Gwangju. "The South Korea-U.S. relations should go on smoothly in the coming period," he said.

Defending his pro-U.S. statements during the lecture at the university, Roh said he had been concerned a rift between Seoul and Washington could heighten tension on the peninsula and complicate the relationship between him and the South Korean people. "It was the most urgent task to lay the groundwork for solving problems by settling concerns about the South Korea-U.S. alliance and economic uncertainties stemming from such concerns," he said. Roh said he now thinks he has changed, noting a president is required at every moment to make a choice. But Roh added he will never easily give up his long-held values of reconciliation and integration (with North Korea).

Hanchongnyeon Students Protest Roh's Pro-US stance in Kwangju (18 May 03)

Earlier in the day about 1,000 students sought to block him from attending a ceremony in Kwangju on 18 May 2003. Roh and his entourage entered a cemetery for the victims through a back gate to circumvent the protesting students, delaying the ceremony by about 18 minutes. The students read a statement urging Roh to withdraw the joint statement issued after his talks with U.S. President George W. Bush and to implement a declaration former President Kim Dae-jung adopted with North Korean leader Kim Jong-il at their meeting in June 2000. The statement also called on Roh to oppose U.S. policy toward North Korea, which the students claim is bringing about a war on the Korean Peninsula. A scuffle erupted when riot police moved in to disperse the anti-U.S. protesters, most of whom are members of the Korean Federation of University Students' Councils (Hanchongnyeon). Later the group held a candlelight vigil to continue their protests of Roh's change in positions. This was a slap in the face as Roh had made conciliatory moves towards the Hanchongnyeon -- including the release of student activists from prison. President Roh instructed law enforcement authorities to severely punish the students who blocked the entrance. Later, Hanchongnyeon, the outlawed group of student activists, offered an official apology for its members trying to block President Roh from entering the national cemetery. The organization stated that the students were merely trying to convey their opinions and did not intend to stop the ceremony itself and asked the government not to prosecute the students.

Roh met with organizers of the Kwangju ceremony and was infuriated that they "demanded" that the government refrain from severe punitive measures against Hanchongnyeon members. Roh said, "It is not a matter of generosity. Everyone should take responsibility for their actions." Roh didn't need to fret, a sympathetic district court dismissed the arrest warrants against two leaders of student activist group Hanchongnyeon for leading an illegal demonstration. The court said that the police arrest warrants had no grounds and proper explanations for seeking the arrest of the students had not been forthcoming.

Resurgence of Anti-Americanism: However, there are issues remaining dealing with the anti-Americanism that is still present within Korea. Though Roh has done an about-face on his stance towards the U.S., there are many expats who are waiting to see some actions to back up his words. There has been little in the way of concrete actions to combat anti-Americanism in Korea as the government has yet to condemn outright any violence perpetrated against Americans. The current trend is to give offenders a mere slap on the wrist. (See Protests (2003) for details.)

The latest incident according to Yonhap News was on 24 May 2003 when an Army Lieutenant was attacked by a Korean in a game room in Uijeongbu. "A U.S. first lieutenant was handed over to the American military police after getting into a scuffle with a Korean man, according to Korean police Saturday. A 31-year-old lieutenant identified as only "V" argued with a Korean man known as Lee at an Internet game room before another Korean man nearby whose family name is Kim started punching him."

The following commentary is from American Daily.com:

Roh Must Rock the Boat on Anti-Americanism

By Owen Rathbone on 05/17/03

South Korean President Roh Moo-hyun's major task on his current visit to the U.S. is to dispel the notion that he is an untrustworthy or unreliable ally. Roh has a serious image problem in Washington in that he is perceived as an anti-American politician. For that reason, he has taken it upon himself to refashion himself into a leader who if not appearing as pro-American at least displays an awareness of the negative consequences of strains in the U.S.-ROK (Republic of Korea) alliance.

Prior to Roh's summit with President George Bush on Wednesday, the Korean press attempted to assist Roh in his quest to repair his public image. The Korea Times lauded Roh's new "pragmatic stance" with the U.S. and "his recognition of the stark reality that the U.S. is the world's indisputable super power and will play the most important role in the future of the divided Korean peninsula." The Chosun Ilbo, in discussing Roh's sudden appreciation of the U.S. military presence in Korea, spoke of a "sober Roh" who had a "change of heart." The newspaper stated: "We applaud the president for deciding to square his stance on national security and Korean-American relations in the right way, once and for all."

Roh's actual meeting with Bush could be judged as a moderate success. The joint statement the two leaders issued after their tęte-ŕ-tęte affirmed that South Korea and the United States will cooperate to deal with North Korea and that Roh will not adopt a foreign policy that runs counter to U.S. interests. Roh's concession to not rule out military force or sanctions against North Korea, by suggesting "further steps" could be taken if deemed necessary, was noteworthy. Roh also seemed to personally get along well with Bush, a development that can only smooth U.S.-ROK relations.

Yet in other ways Roh has still not shown he can be trusted. Although he made many encouraging statements and complimented his American hosts, mere words alone will not be enough to assure the White House that South Korea is a loyal ally. Although Roh has dropped much of his earlier anti-American rhetoric, he has still not confronted the roots of anti-Americanism in Korea head-on or made any promises to do so. Simply by saying kind words about America or President Bush, the South Korean President appears to expect Americans to forgive and forget. "Don't worry, be happy," he seems to be saying.

In this respect, Roh has a very short memory. American expatriates have had to deal with all kinds of misplaced anger from Koreans over the past few months after two schoolgirls were killed in a U.S. armored vehicle accident last year. Restaurants and tourist sites throughout Korea posted signs that read: "No Americans." A U.S. serviceman was attacked and stabbed in an underpass by a group of young thugs. An American servicewoman was manhandled by a gang on a jogging path. A group of American soldiers at a train station were spat on by a middle aged Korean man as a cameraman filmed the entire episode and a large crowd looked on. One U.S. soldier, when he refused a political leaflet on a Seoul subway, was attacked by a mob, abducted and forced to "confess" before a crowd of protesters about American soldiers' "crimes." Protesters stormed U.S. military installations, tossing concrete blocks at soldiers, injuring many Americans in the process. The American Chamber of Commerce was also ransacked by a crazed mob on another occasion. Protesters have tried to smash their way into the U.S. Embassy many times, but have fortunately been prevented from doing so by riot police.

The Korean government's response to this uncontrolled rage has been to do almost nothing. No charges have been laid against any of the individuals who participated in attacks or who trespassed on and vandalized American property. In one case, a Korean anchorwoman who had criticized protesters for storming a military base was summarily dismissed from her job.

It is not just Americans who have suffered in this environment. The foreign community is rife with stories of Canadians and other foreigners being denied service at restaurants, cursed at, and even attacked for looking "American." Such incidents are not taking place as frequently now and fortunately did not result in any loss of life, but the fact that no government representative has publicly acknowledged the problem speaks volumes about South Korean attitudes toward Americans and foreign residents.

On one occasion it appeared that Roh was serious about confronting Korean teachers who were teaching anti-American classes. During the Iraq War, the Korea Teachers' and Educational Workers' Union (KTEWU), or Jeongyojo, provided downloadable lesson plans that criticized the United States for starting a war that would supposedly kill up to 500,000 Iraqi citizens. Jeongyojo also provided photographs for class use of the mangled bodies of the schoolgirls killed in the armored vehicle accident. One union member showed students a photo of a dead prostitute who had allegedly been killed and mutilated by an American soldier. A union branch in South Jeolla province printed supplementary materials that claimed the United States intentionally was keeping the Korean peninsula divided. Roh promised to look into the matter, but then backed down, claiming that the lessons were not as bad as had been portrayed. In fact, Roh appeared to be worried about angering the union, since its members represent a strong base of political support.

Another area where Roh has been particularly weak has been on anti-American Internet sites. The most well known sites are antimigun.org, cyber.antimigun.org, and voiceofpeople.org, all of which were key supporters of Roh during the presidential election. Roh has declared war on the print media for publishing unflattering views of him, yet he has praised such Internet news portals for their continued support. The sites carry pictures and videos of anti-American protests, articles and stories portraying the U.S. as an occupying power in the ROK, and message boards filled with hundreds of hate messages condemning America and its alleged atrocities in Korea and around the world.

In an open letter to George Bush, Voice of People (VOP) recently criticized the U.S. for posing "a grave threat to peace on the Korean peninsula." Among a list of demands, VOP asked for a public apology from Bush over the deaths of the schoolgirls and the signing of a non-aggression pact with North Korea. The letter ends: "If you foolhardily continue to brush aside our demands, anti-Americanism will surely sweep over the whole Korean peninsula, which eventually will result in the dishonorable expulsion of the American soldiers."

If Roh is truly serious about repairing the U.S.-ROK alliance he must take some concrete actions to combat anti-Americanism in his country. To begin, the South Korean government must condemn outright any violence perpetrated against Americans (or any foreigners for that matter). If such acts occur, the perpetrators must be punished. The current trend to give offenders a mere slap on the wrist must end. Americans in Korea should expect the same rights as a Korean national in a similar situation in the U.S.

Second, the Korean government must take an open and firm stand against anti-American web sites. That does not mean the sites should be shut down. That would be undemocratic. However, Roh must state clearly that he does not endorse the web sites' anti-American contents. The South Korean government should also provide alternative sources of information to provide balance to the fabrications and hate of these and similar sites.

Third, the Roh administration should confront the KTEWU once again for promoting anti-American lessons. If the union is really interested in teaching about "peace" and "anti-war issues" it must use other examples than just those concerning the United States. What about massacres in the Congo, for example? What about Hitler and the Holocaust? What about Apartheid? What about atrocities under Kim Jong-il or Saddam Hussein? The focus should not just be on the U.S. This is not well-rounded or unbiased education. A generation of American haters is being bred and Roh Moo-hyun's government is doing nothing about it.

Korean officials are now saying that most Koreans are not anti-American and that everything is a "misunderstanding." Perhaps it is true that most Koreans do not hate the U.S., but as it stands now it appears that they tolerate anti-American viewpoints and displays of violence. Silence implies approval. It is not up to America to "understand" Korea. It is up to Koreans to show unequivocally that they do not view America with contempt.

Roh and his government must state outright and in no uncertain terms that mob rule, violence against Americans and anti-American education are wrong and will not be tolerated in a civilized society. Concrete measures must be taken to win back Americans' trust. Roh must rock the boat on anti-Americanism. If he does not, the goodwill that he has begun winning back will evaporate and South Korea will be worse off for it.

Owen Rathbone is a political commentator based in Seoul, South Korea. He can be contacted at: owenrathbone@yahoo.com

Resurgence of Anti-Japanese Protests: Roh visited Tokyo between June 6-9, 2003 for a summit with Koizumi in which the North Korea nuclear dispute and bilateral trade topped the agenda. However, he faced a public uproar over his planned meeting with the Japanese emperor June 6. Politicians and citizens voiced opposition to his plan to attend a dinner hosted by Emperor Akihito on the nation's Memorial Day. For many Koreans, the Japanese monarch remains a symbol of the nation's imperialist past and its colonial rule over the Korean Peninsula in 1910-45. Officials said incorporating the emperor meeting into the itinerary was unavoidable because of the conflicting schedules of Roh and Prime Minister Koizumi. They added that rallying voices fail to recognize how times have changed, with a controversy out-dated in the present context of the two nations putting aside their past enmity and seeking a new "future-oriented partnership."

Roh and Koizumi (7 Jun 03)

For those who witnessed the campaigns to erase Japanese structures from Korea in the mid-1990s, the hysterical anti-Japanese fervor sends a chill down one's spine. It was open and blatant hatred. Many areas of Seoul were "rejuvenated" to erase Japanese structures. The Seoul National Museum was torn down because it was once the center of Japanese power -- but denying its historical significance as the largest structure in Asia during the colonial period. The Koreans claimed the Japanese selected sites with the best flow of energy as though they somehow cheated the Koreans of this mystical source of power. They even claimed that the Japanese sank iron rods to destroy these power centers to deny them for Korean use. The arguments were completely irrational.

Hatred of the Japanese is taught in the elementary schools using the invasion of Japan in 1592-1598 as a basis for how Japanese have ALWAYS been a cruel people. Every Korean student learns to revile the name of Tokugawa Ieyasu (1543-1616), Japanese military leader and statesman, founder of the Tokugawa dynasty of shoguns, but most Koreans condemn him for the invasions of Korea. In truth, Toyotomi Hideyoshi was the one who pursued his futile invasions of Korea for seven years starting in 1592 until his death in August 1598. What is disturbing is that any elementary school student will tell you that they hate "Ieyasu" for his invasion of Korea...very twisted history. Koreans revisionist history attempts to paint a patriotic picture of "volunteer soldiers" and soldier monks defending the country. In truth, the Korean army was a shambles and its only successful army general was executed by the king. Only the shining naval triumphs were by Admiral Shin Yi-sun's in 1592-1594 are noteworthy. However, true to Korean politics of the day, in 1597 the King handed over command to Won Kyun, while Shin Yi-sun was taken to Seoul as a prisoner in a cage on an ox cart. This is NOT what revisionist historians teach. Later Won Kyun suffered massive defeats and was beheaded and Shin reassumed his naval command. (See Shin Biography.) Koreans like to believe that this was the key to victory, but in truth what ultimately brought the Japanese to its knees was the cruel Korean winter and lack of supplies from Japan. Japanese atrocities from this invasion-- such as the ears and noses chopped off as proof of the Korean death toll -- are periodically resurfaced in the press to keep the wounds open. The "historical" melodramas on TV also perpetuate this hatred.

During the colonial period, the freedom movement for Korea created many uprisings that were put down with massacres. It is true that Japan sought to reshape Korea into its "rice bowl" and treated Koreans as inferiors. No management or upper-level government positions were allowed to them -- and the Koreans were forced to change their names to Japanese with Korean language study suppressed. The Koreans hate the Japanese for this period. Many Koreans are now classified as "traitors" for their aid to the Japanese. (See Kimsoft: List of 708 traitors.) Periodically new "proof" surfaces of Japanese collaboration against some past hero and his statue is torn down. How they come to pick who is a traitor is completely arbitrary. Even Park Chung-Hee, the iron-fisted dictator of Korea, was a former Japanese officer in WWII trained in the Japanese Military Academy. The annual Japanese pilgrimage of the Japanese Prime Minister to the shrine honoring the Japanese War dead ends up in vocal protests from Korea because the convicted Japanese war criminals are also honored there.

The plight of the Japanese "comfort women" -- sex slaves -- is horrific and used to increase anti-Japanese sentiment. Other "wrongs" such as demands for compensation for forced labor or wrongful death suits dealing with WWII are constantly being waged in Japanese courts. However, most of these legal suits in Japan have been normally dismissed -- citing the normalization treaty between Korea and Japan -- and compensation provided at that time -- as settling this matter. On 22 Jul 2003 the Tokyo High Court rejected a damages suit filed by wartime sex slaves and Korean civilian personnel -- though it ruled that the Japanese government failed to fulfill its obligation to provide security for several plaintiffs. The 35 plaintiffs, including bereaved family members, sought 20 million yen in compensation each from the Japanese government for their wartime sufferings due to the former Japanese Imperial Army.

Some myths also abound. Koreans are taught that the 2 million Koreans currently in Japan are descendants of the 600,000 conscripted "slave" laborers that existed at the end of WWII. Koreans feel outrage that the Japanese should treat these people who were brought to Japan against their will so shabbily. This item is completely NOT true. There were 2 million Koreans in Japan at the end of WWII and 1.4 million were voluntarily returned to Korea by direction of the U.S. Army GHQ-- just as the Japanese in Korea were voluntarily returned to Japan. According to an article at From transient to resident: 600,000 Koreans remained in Japan, "It is often said that those Koreans in Japan today are those who were forcibly brought to Japan as laborers and their descendants. Even though there are some such Koreans, this does not apply to the majority of Koreans in Japan today. The vast majority of Koreans who were forcibly brought to Japan from 1939 to 1945 returned to Korea. The Koreans in Japan today are mainly the descendants of those who came in search of employment before the Imperial Japanese government started forcibly bringing Koreans to Japan." In truth, conscripted labor started in 1944 -- not the myth that it was from days prior to the war." These Korean people who remained in Japan with their families after WWII eventually became the 500,000 "Zainichi Koreans," who have special permanent residency in Japan. The remaining 1.5 million Koreans are NOT granted special residency as they arrived AFTER WWII.

The Ministry of Culture and Tourism announced they were lifting the ban on Japanese Culture according to a system set up by former President Kim Dae-jung in 1998, following the Japanese Prime Minister's formal apology to Korea for its colonization of the peninsula 1910 to 1945. Kim outlined a four-phase plan to gradually allow Japanese products into Korea. Many analysts feared the Japanese imports would create a deficit with trade and cripple Korean industries effect on the domestic market.

But Kim Dae-jung's actions were only symbolic. The truth was that in the 1990s the miracle of the Han had arrived in Korea and with it -- satellite dishes. The ban on Japanese culture was ineffective as the dishes bypassed the ban. Satellite dishes became more and more prevalent -- and soon the cable companies started offering NHK. Though the government mumbled about its ban and in 1998, it bowed to the inevitable. Only within the past ten years has Japanese music been allowed to be publicly broadcast and NHK allowed to be aired on cable television as the anti-Japanese sentiment ran deep. Through "globalization" the Koreans changed their views of their relationship with Japan as business "partners," but on an emotional level the relationship remained stunted.

There were disturbing anti-Japanese undertones with remarks from the government that the Japanese ideas and values contained in music, movies, comic books and cartoons would corrupt the impressionable youth here raised in a conservative society. However, in the 2000s the internet effectively bypassed any ban as the youth simply downloaded their favorite "animie," Japanese animation, and "manga," Japanese comic books off the internet. Again the ban was ineffective. South Korea would lift its ban on the showing of Japanese cable television programs and satellite broadcasting as of 1 Jan 2004 in a bid to further open the domestic market to Japanese cultural products according to the Culture and Tourism Ministery Lee Chang-dong in Dec 2003. Japanese programs broadcast via new media, including cable television and satellites, will be allowed within the fullest possible scope.

The first three phases of Kim Dae-jungs 1998 policy integrated themselves smoothly without any noticeable impact on the economy or mindsets of the local youth. However, the final phase of opening the market to music and movies has failed to materialize. This deals with the business end of the opening dealing with music, TV and movie rights. The reasons for the government delays are complex. For example, local broadcasters copy popular ideas of successful Japanese shows. "Making a Better World," which invites elderly couples to answer questions on a talk show, bears a remarkable resemblance to a Japanese series. This would bear on intellectual property rights issues. The controversial "censorship" system for movie ratings would also come under attack. In addition, home-grown movie and cartoon industries are still in the fledling stages of growth and fighting a losing battle for market share with American and foreign films.

The Ministry of Culture and Tourism first squirmed at the question of the status of the ban, then replied they are still in talks about when to schedule the next phase of lifting the ban. "Eventually" was the more precise term they used, instead of "this summer, or this fall" -- putting off the failed promise of opening by 2002. The government has been using the delay in lifting the ban on Japanese pop culture as a symbolic protest against Japan publishing school textbooks that reportedly present a biased view of Japan's occupation of Korea. The debate continues today with people trying to strike deals with Japan and anticipate the ban lifting.

In January 2004, Seoul opened the cinema door to all Japanese movies, except animated movies. In the Asahi Shimbun, "CULTURE OPENING: S. Korea move lets in Japanese film festival" (24 Oct 2004), it stated that "South Korea's closed-door policy on Japanese pop culture has opened a tad wider, and Japanese cultural officials are rushing to jump in." A Japanese Cultural agency has handpicked 46 films, mostly produced during the 33-year ban, for the festival, called ``Japanese Cinema: Love and Youth 1965-1998.'' It will be held at a Seoul cinema complex from Nov. 11-24. ``The Korean TV drama series `Winter Sonata,' now popular in Japan, has introduced South Korean culture, its language and food to Japan,'' said Ken Terawaki, director-general of the agency's Cultural Affairs Department. ``I am looking forward to seeing which of the 46 movies will catch the hearts of South Korean people.''

However, anti-Japanese sentiment runs deep in Korea. Japanese hatred is taught in schools based on the historical abuses of Japan dating back to Japan's 1598 invasion continuing through constant Japanese pirate raids up to the 1700s and through the traumatic experiences of the colonial period. The destruction of all things Japanese reached its high point in 1995 when the Seoul National Museum was torn down because the building once was the seat Japanese power in Korea -- regardless that it was a classic example of architecture of the period. Former Japanese-residential areas were targeted for reconstruction throughout the nation. However, on an emotional level, the WWII comfort women issues still is alive. This irrational emotionalism caused the cancellation of the Emporer's and Japanese Prime Minister's visit to Korea during the World Cup 2002.

A Korea Herald editorial on 2 June 2003 stated, "Japan has persistently refused to compensate its Asian victims for its crimes before and during World War II. The question of its extremely slow moral atonement aside, Tokyo has cited the San Francisco Peace Treaty of 1951 and the 1965 agreement with Seoul for normalization of relations, as well as domestic statutes, as the legal bases for its position. Both international accords are clearly flawed, however, because they failed to reflect the voices of the victims of imperial Japan's brutal aggression and exploitation of its neighbors." In June 2003 a Superior court overturned a 2001 Kyoto District Court's ruling to compensate the loss of family members being repatriated after WWII when a ship carrying the members was sunk between Japan and Korea. A family member stated that he would "never forgive the Japanese and would pass this hatred on to his progeny through the millenia." Two earlier rulings in favor of Korean compensation - the first in 1998 for a group of South Korean "comfort women" - were turned down by higher courts.

The Koreans also have an irrational fear of the Japanese SDF military buildup The Japanese have just amended their constitution for war-powers contingencies because of the North Korean threat in May 2003 -- a preliminary step to amending the "peace" constitution altogether. This is as a direct result of the North Korean missile threat. On the opposite side of the coin, the Japanese have an irrational fear of a missile attack from North Korea -- while the South continues its head-in-the-ground disbelief that their "brother" in the North would ever send missiles and WMD against their brethen while accepting that Japan is a target.

The Japan Times reported on 20 May 2003 that the House of Councilors began debate on a set of war contingency bills. Prime Minister Koizumi explained the amended bills, containing a new definition of situations in which Japan would be considered under armed attack. He said the bills "will not change the nation's exclusively self-defensive security policy, and we will continue efforts to generate understanding abroad about the significance and the roles" of the bills. The coalition divided possible military strikes into two categories -- "military attack situations" and "predictable military attack situations." The first is defined as situations in which Japan faces "actual military strikes or apparent dangers," which would allow mobilization of the Self-Defense Forces (SDF), and the second is described as situations in which military strikes can be expected, which would allow the SDF to go on standby.

Officials have said the package provides a procedural framework for Japan's national defense that has not existed since World War II, but Korean lawmakers reacted with alarm and outrage. Some said the bills would allow Japan to escape tight restrictions on the use of its military forces. The laws provide procedural guidelines for Japan's defense in the event that it is attacked. The first law ? the act on response to a military threat ? allows the government to identify the threat and put into operation a war council headed by the prime minister. Citizens and local governments then would be subject to decrees of the central government. The second law facilitates the taking of private property and the conversion of public facilities for military purposes. The third establishes a wartime national security council. Together, the laws will be the basis for further legislation on Japan's national defense, Prime Minister Junichiro Koizumi said.

Prime Minister Koizumi indicated Japan could possibly attack foreign missile bases if the Japanese government determines that another country intends to attack Japan from them and is indeed preparing to do so. "If we determine that a foreign country has a clear intention to invade Japan...we could not just let the Japanese people be harmed by doing nothing," Koizumi told a parliamentary debate.

In conjunction with the changes to the Peace Constitution, the Japanese are shifting in their attitudes about their forces being engaged in peace-keeping operations. The controversial bill to send forces to Iraq into possible hostile territory is hotly debated. But the point is that the Japanese are now openly discussing such actions where as before this would have been unthinkable. The North Korean crisis has started to change the way the Japanese are viewing their safety. The American "umbrella" is now being seen as impotent in stopping missile threats from hostile neighbors.

In June 2003, it was reported by the Yomiuri Shimbun that the Security Council of Japan and the cabinet would adopt a plan to allocate funds for two types of missile systems -- Standard Missile-3 (SM-3) and Patriot Advanced Capability-3 (PAC-3) -- in late July 2003. The SM-3 is to be mounted on Aegis-equipped destroyers to intercept ballistic missiles in outer space. Japan's Defense Agency currently has Standard Missile-2 (SM-2) systems mounted on four Aegis-equipped Maritime Self-Defense Force ships, as well as Patriot Advanced Capability-2 (PAC-2) missiles for 27 launchers, including 24 antiaircraft batteries operated by the Air Self-Defense Force. All the missiles, however, are designed to be antiaircraft and are incapable of intercepting ballistic missiles, which travel at a much greater speed. The plan came after the government unofficially learned that the DPRK had 160 to 170 medium-range Rodong missile units targeting Japan and that the DPRK might have acquired technology to reduce the size of nuclear weapons so they can be mounted on ballistic missiles, the report said. The government intends to begin the 200-billion-yen (1.7-billion-dollar) defense program as early as April 2007. (SITE NOTE: The Japanese Defence Agency decided to seek US permission for a Japanese contractor to build the PAC-3. The PAC-2 is currently assembled under a licensing agreement in Japan by Mitsubishi Heavy Industries Ltd., the top Japanese defence contractor. Mitsubishi Heavy is the front runner for the contract if approved by the U.S.)

The Japanese plan to create an integrated missile defense force consisting of a Maritime Self-Defense Force Aegis-equipped destroyer and Patriot missile batteries under the Air Self-Defense Force by integrating battle management, command, control, communications and intelligence of the two missile defense systems. The Japanese Defense agency hopes to create the integrated missile defense force as early as 2006 when Japan introduces two U.S. missile defense systems to cope with missile attacks. This would be the first inter-service combat unit in the Self-Defense Forces. The integrated missile defense force would have six Patriot Advanced Capability-3 (PAC-3) batteries and one Aegis destroyer. Deployment of the integrated missile defense force would cost more than 1 trillion yen. The missile defense system based on Aegis destroyers is designed to intercept short- and medium-range ballistic missiles at midcourse. The PAC-3 ground-to-air antimissile system, which will upgrade the Air Self-Defense Force's PAC-2 system, is designed to knock out missiles missed by Aegis destroyers.

Prior to his Japan-ROK summit, President Roh Moo-hyun voiced concerns on 4 June 2003 on the recent Japanese move to pass a set of security bills stipulating ways to respond to outside attacks and other emergencies. "Japan should manage its public consensus to ensure that neighboring countries are not uneasy over the bills," Roh said on 5 Jun 2003. On 6 Jun 2003 both the GNP and MDP lashed out at Japan for passing a set of security bills on the first day of Roh's four-day state visit to Japan.

The Japanese are seriously moving towards a different perspective on the use of the SDF. Japanese Air SDF pilots and maintainers arrived in Alaska for Cooperative Cope Thunder on 27 May 2003. The June 5-20, 2003 exercise represents the first time the JASDAF has deployed fighter aircraft to any exercise outside of Japan. Cope Thunder is a Pacific Air Forces-sponsored, air combat training exercise held up to four times a year. SDF Forces have practiced air refueling operations at the helm of a borrowed KC-135 -- something that SDF would not need for strictly Japanese use. Japanese SDF ships were used to refuel allied ships headed to the Persian Gulf during the Iraq War.

While Korea sees nothing wrong in its headlong pursuit of strengthening its military forces -- even with the proposed building of a carrier in 2010 -- it objects to the Japanese building up of its SDF forces. The Japanese have the edge both technologically over the Koreans. The Japanese have had long experience as a blue water navy, while the Koreans are just starting to hone their skills now. While the Koreans built the KF-16 under contract, the Japanese F-16 has a Mitsubishi carbon wing that is far superior to the original. The Japanese have launched spy satellites over North Korea, while the Koreans have only recently started their programs. (See Marching to Its Own Drum for the Korean military buildup.)

On 24 May 2003, President Bush and Prime Minister Koizumi issued a statement after their summit in Texas showing their unity in dealing with North Korea. The South has mouthed the words, but their are still differences in approach. The U.S. and Japan reiterated that if the North continues with escalating the crisis increased "measures" would be taken. The threat of economic sanctions and potential of blockades to stop its shipments of drugs and missiles to close off its last remaining source of income was implied. There were no specifics as to what "economic sanctions" meant.

However, the anti-Japanese furor runs the gamut of topics from the Tok-do Island territorial issue; to territorial fishing boundaries: to Comfort Women of WWII; to confiscation of wages in WWII; to the controversy of the "Sea of Japan" versus "East Sea"; to the changing of "Korea" to "Corea" because the Japanese supposedly named it with a "K" (which is historically invalid and ludicrous). The intensity can get very heated. In the mid-1990s, the anti-Japanese hysteria peaked and resulted in the destruction of the National Museum in Seoul along with whole areas throughout Korea because of the Japanese construction. At its height, there were claims that Japanese had sunk iron rods into the ground to disrupt the energy flow of geomancy -- and some other very dubious claims. Pick a topic and it will turn anti-Japanese.

Radical Students Protest Roh: On 30 May 2003, students protesting the arrest of the Hangchonyeon students who participated in a rally against Roh at a Kwangju national cemetery marched in the streets. The outlawed organization's hardliners blocked President Roh Moo-hyun entry to a cemetery to attend a service on the 23rd anniversary of a pro-democratic uprising in Kwangju. The demonstration was relatively small and peaceful.

However, on 1 June 2003 a radical student activists' group pushed ahead with its annual ceremony. Some 10,000 members of Hanchongnyeon, or the Federation of Korean University Student Councils, assemble at Yonsei University in western Seoul today to celebrate the 10th anniversary of the organization. The auditorium was packed.

Hanchongnyeon held an academic and cultural festival on 1 June 2003 as well as hosting a 6.15-kilometer run between Yonsei University and Sogang Bridge, followed by anti-war festival in Kwanghwamun, downtown Seoul. Student activists introduced their new leaders in the evening.

Hanchongnyeon Rally Yonsei University (30 May)

Hanchongnyeon Rally Yonsei University (1 Jun)

Police increased security and focus on apprehending the leaders of the organization, including its chairman Jung Jae-wook. Police permitted the cultural festival, but banned students from moving toward the U.S. Embassy. A number of the leaders of Hanchongnyeon, which is still designated an anti-state body under the National Security Law, are on the wanted list and will face legal punishment if caught. The government vowed to crack down on Hanchongnyeon if they pursued illegal activities, signaling a change from the Roh administration's conciliatory approach. Roh had previously said he would consider legalizing the organization.

In July 2003 the police reaffirmed that the Hanchongnyeon was an illegal organization and it would treat them as a North Korean support group. The Roh administration continued with a soft stance on the group and several civic groups encouraged "legalizing" the group. The Police stance places it on a collision course with the President's stance.

Members of the Hanchongnyeon have continued to be active in sensational moves to break into USFK bases to protest the U.S. presence in Korea. (NOTE: The students know that the courts will be sympathetic to their cause. The precedent was when the 2002 Amcham break-in where they destroyed $10,000 in furnishings and held workers hostage. The majority of the students were released without charges. Five received probation with their records wiped clean after five years. Other breakins at Uijongbu had the students cases thrown out.)

Roh's Popularity Starts to Slip (Apr 2003)

Anti-Roh Students: Seoul (25 May 03)

Anti-American Protest: Seoul (25 May 03) Right: Roh as Bush's obedient "wife" Left: Candlelight Vigil for two girls of June 2002 accident

After his slight of the National Assembly in appointing his "left-leaning" choice to the NIS head post, the honeymoon was over. His attacks on the "gangster press" -- meaning the three major conservative newspapers -- made him enemies early on. His political opponents and the conservative media are stepping up their offensive against his administration's incompetence in crisis management and a couple of suspected corruption cases involving his key aides and elder brother.

Critics say Cheong Wa Dae is filled with "amateurs" in administrative affairs who were picked largely because they shared common political views with the president. They feel that decision-making processes in the government are inconsistent, lacking in firm principles and proper channels of consultations. The president's excessive involvement in concrete policies gave little room for cabinet ministers to handle issues in their respective areas through administering policy or guidelines as is normal. Roh's aides admit there is a measure of confusion in the process of policy consultations, but they said such problems stem from the government's adoption of new ways of decision-making based on debate and consensus.

Excerpted from Korea Herald on 25 Jun 2003:

The presidential office came under fire after a series of incidents that critics say exposed the poor discipline of its staff. Cheong Wa Dae recently reprimanded nine officials who took their family members on an inspection visit to the site of a controversial reclamation project in the southwestern part of the nation.

An investigation found that they used a fire-fighting helicopter belonging to the provincial government during their one-day tour of Saemangeum, North Jeolla Province.

Earlier this week, the presidential office dismissed a staff photographer after a popular Internet-based news outlet publicized a photo of senior officials at the National Intelligence Service in violation of security rules of the top spy agency.

Yesterday, Moon Hee-sang, chief of staff, convened a meeting of senior secretaries to discuss possible punishments for higher-ranking staff. President Roh Moo-hyun has recently instructed the top secretary to take strict disciplinary steps for those responsible for the incidents and do a better job of supervising what goes on in-house, his spokesman Yoon Tai-young said.

Yoon apologized for "causing apprehension among the public."

He said the veteran photographer released the picture without realizing that an NIS rule prohibited the publication of personal information for its agents.

The photo was posted at the Internet homepage of the news service, "Ohmynews," last Friday. The company deleted it two days later after a flood of complaints from other media and readers, one of them lashing out at its "complete lack of a sense of national security." Regarding the Saemanguem episode, Yoon said the staff's tour was initially arranged as a private event but later changed into an official on-site inspection at the direction of a high-ranking official.

The tour caused consternation among the public, especially given the bitter controversy between developers and environmentalists over the tideland reclamation project.

The episodes are only the latest in a series of controversies involving the presidential staff's sloppy handling of certain situations. Some working-level officials were rebuked in April 2003 for negligence of duty after they failed to answer a hot-line call from the president when he was visiting the United States.

The president called at midnight in Korean time to inquire on the development of a truckers' strike that paralyzed the nation's major ports. The following month, Song Kyoung-hee, Roh's first presidential spokesperson, was relieved of her post after she committed a series of mistakes in press briefings.

The incidents fanned stiff criticism of the Cheong Wa Dae officials who are already under fire for their inexperience and imprudence. Critics say Cheong Wa Dae is filled with "amateurs" in administrative affairs, who have filtered into the presidential office largely because they share common political views with the president.

"The incidents resulted form the extremely slack discipline among Cheong Wa Dae officials who can't distinguish between official and private affairs," Bae Yong-su, a vice spokesman of the opposition Grand National Party said.

To offset this, the government started a high-intensity campaign, coinciding with the 100-day anniversary on 4 June 2003 of Roh Moo-hyun's inauguration, to diagnose its performance by seeking to put top officials on TV and radio programs. The emphasis was to show the initial 100 days of the government as a period for preparing a new operational system for the government and emphasized that the "real management" of the government was just starting. Unfortunately, even before this could start, Education Minister Yoon made a mess of the NEIS problem and the GNP prepared for a vote of "no confidence" to remove him from office. Roh appeared on TV to explain his case over allegations of impropriety in bribes and land holdings, but his appearance only provided more fuel as he admitted owning a water company which money from the now defunct Nara bank was funneled. He scheduled future TV appearances.

On 1 June 2003 an emotional President Roh pledged to do better after acknowledging mistakes at a news conference marking his first 100 days in office. The DPRK nuclear crisis, a slowing economy and labour unrest put an end to any hope of a honeymoon period. "Of course, I frankly admit that I and my administration are responsible for some errors. I will correct them. Yet we should not give up ... and I emphasize again that time and patience are needed," he said Monday. Roh's popularity ratings have plunged to below 50 percent from the high 60s since he took office. "We need joint efforts and patience to wisely overcome this transitional period," he said. Aware of growing public grievances about an economic slowdown, Roh said economic issues would take priority over foreign affairs -- including the DPRK nuclear crisis. "From now, policy priority will be given to stabilizing the economy," he said. Still, Roh vowed to work harder to bring peace to the Korean peninsula by stepping up diplomatic cooperation with the US, Japan, the PRC and Russia and reiterated a call for a peaceful resolution to the nuclear crisis, warning the DPRK that nuclear weapons would not be tolerated.

However, soon after his speech he proposed each of the ministries having a core group of reformists to lead the campaign of reform. As soon as he said it, his critics stated that it sounded like a communist method of instituting changes through a select group of political commissars. Then upon his visit to Japan he invited the Japanese Communist Party to Korea. When there was an uproar, he stated that the Japanese Communist Party was not like the North Korean communists -- and other such tripe. Even the Koreans shook their heads at his gaffe.

According to a 24 Jun 2003Chosun Ilbo article, "College students are dissatisfied with President Roh Moo-hyun's performance in office so far, but have high expectations for the rest of his term." In a poll of 457 students, 47 percent said that Roh had made mistakes that had weakened his authority. "Asked whether Roh had sown confusion about his policies, 52.5 percent of the respondents said yes, 16.9 percent said no and the rest said they were not sure. When asked whether they thought Roh's policies would settle down soon, however, 72.4 percent said yes. On whether Roh is the right president for Korea at this time in history, 4.4 percent said they agreed strongly, 37.1 percent agreed, 18 percent disagreed and 40.6 percent neither agreed nor disagreed."

Even Roh's support group is in trouble. In a public disclosure on its Website (www.nosamo.org), Nosamo, a Korean acronym standing for "People who love Roh Moo-hyun," said it has arrears of 19.3 million won (US$16,300) for office rentals, Internet services and manpower costs. It is in financial trouble as payment of membership fees is sharply decreasing. The group helped catapult President Roh Moo-hyun to the presidency last year.

By July 2003, a Korea Herald editorial stated that the eight months of Roh's Presidency felt like "eight years." By August 2003, conservatives and liberals were attacking his policies. Roh's whole administration was under attack -- even by elements from within the government. The conservative newspapers were especially critical forcing Roh to lash out in frustration that he would create his own internet newspaper to tell his side of the story. In August 2003, his popularity was at 30 percent according to telephone polls.

In Sept 2003, the chief of Gwangju Prosecutors Office criticized President Roh Moo-hyun's statement about reining in prosecutors. Then a retiring Supreme Court judge, Seo Sung, came out strongly against the Roh administration saying, "The government is running about in utter confusion and the political authority is powerless."

Anti-war Protest (1 Oct 03)

By Oct 2003, even his former supporters were coming out with negatives. Chosun Ilbo on 8 Oct 2003 reported that Chang Se-hwan, the former vice governor of North Jeolla province and former public relations aide to Roh during Roh's campaign last year, said in a letter to the president that public sentiment in North Jeolla has turned strongly anti-president and anti-government. "Roh, therefore, should support the completion of the Saemangum land reclamation project there," Chang said. Chang Se-whan said public sentiment in North Jeolla province has turned against the president and the government, and no one in the government has stepped forward to ease locals' concerns. Only 15.6 percent of North Jeollans think favorably of Roh, according to a recent survey, while 38.9 percent support the MDP and only 14.1 percent of the province supports the new pro-Roh party that split from the MDP. As the rumor spread that the government would stop the Saemangum project, "the last hope for North Jeolla province," public sentiment is on the verge of explosion.

In the same article, Choi Si-jung, the head of Gallup Korea, urged President Roh to seriously approach the nation's problems and come up with appropriate measures for Korea's future. Choi warned that some have been saying President Roh and the government are already losing control over political affairs and becoming lame ducks. Many Koreans want to emigrate due to the "chaos stirred up by President Roh and the government." This was a wound brought by the president's reform policies, Choi said.

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Roh Calls for Vote of Confidence The Agence France-Presse ("SKOREAN LEADER ROH GAMBLES ON RISKY VOTE OF CONFIDENCE," 10/10/03) pointed out that President Roh is being condemned for failing to control the militant labor struggle and failing in getting Korea out of the economic recession. Even his supporters are opposing his opinion about the North's nuclear crisis. AFP said approval ratings on the incumbent president, which skyrocketed to 80 percent right after his victory in the presidential election, has since plunged to a figure of slightly over 20 percent in the seven months of his term in office. At present, he is regarded as a lame duck and as a President with no power to lose since he never gained any power after his election. Roh argued that the GNP-controlled National Assembly and a hostile news media had undermined his presidential authority.

Though the recession and nuclear crisis had hurt him, some troubles were self-inflicted. South Koreans were puzzled when he publicly questioned whether he was "up to the job" after just 100 days in office. Roh came into office promising to root out corruption following the scandal-tainted term of his predecessor Kim Dae-Jung. However, his administration soon became enmeshed in political scandals -- including allegations against himself.

On 10 Oct 2003 President Roh announced a shocking decision when he said he wanted a vote of confidence in his rule, possibly a referendum, in a move seen as a dangerous gamble aimed at shoring up his crumbling support. The liberal reformer struggling against a hostile parliament and falling support said he wanted to win back the "moral high ground" that legitimized an administration elected on an anti-corruption platform. Roh said he would ask for a vote of confidence, possible in the form of a referendum, once the investigation had been concluded. His call triggered surprise and criticism. "This man is unpredictable," said a western diplomat. "Tomorrow he may change his mind again."

But analysts saw it as a risky political gamble that would do nothing to solve the political challenges facing a president with a growing reputation as a maverick. Roh's statement raised controversy in political groups over the timing and method of obtaining the public's opinion, which would include a risk of ending or interrupting Roh's five-year presidential term. However, the Constitutional Court stated that IF ASKED, it would declare the referendum idea unconstitutional. Roh knowing this full-well continued to speak of a referendum.

Roh's move came after prosecutors accused Choi Do-Sul, a longtime ally and former top aide, of taking around one million dollars in bribes from SK Corp, the ROK's third largest business group, in exchange for favors. Choi, the ex-presidential secretary for general affairs, denies the charge.

On 11 Oct 2003 Prime Minister Goh Kun and the entire Cabinet offered their resignations. Roh stated he would not accept the resignations. Roh stated, "The Cabinet needs to serve the nation better at a time when I ask for the nation's confidence in me. We need people who can maintain stability in the administration ... Therefore, I immediately reject their resignations. ... Although they did not perform perfectly, they did not commit any wrongdoing that would hold them responsible for this situation. It is my problem."

The GNP at first opposed the plan, stating that if impeachment was more appropriate because of the unfolding political slush fund scandal from the SK group it should be pursued instead of a referendum. At the end of October 2003, Roh asked the Constitutional Courts "advice" on the constitutionality of a referendum. The Court replied that it was "unconstitutional" -- but also stated that it still had not been asked to rule on the matter.

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End of 2003: Leadership Vaccuum Roh's call for a referendum vote to justify his government has been put on an indefinite hold. Public surveys showed that a majority of the people would support him in the event of a vote of confidence, the constitutionality issues and protests from other parties have stopped the move for now. His "ruling party" -- the breakaway element from the MDP -- is in deep trouble as the MDP has shown growing popularity especially in the Cholla areas, his main base of support. The protests in Puan continue with the labor activists joining with the Puan protestors -- as they are looking for reciprocal support for their causes. However, Roh has decided to back off the Wi-do site and seek other "alternatives." The only thing holding up the economy is strong exports. Consumer confidence is nill.

However, what is most disturbing to an outsider are small indicators that show the rich is getting richer and the poor are getting poorer. The rich are getting richer can be seen by the rise in imported car sales. A foreign car costs are almost double that of a domestic car after tariffs and "special taxes." Sales of imported vehicles have been increasing, reaching 17,529 in the first 11 months of the year, up 20 percent over the same period last year. Though its market share stood at a mere 1.86 percent, it is significant to note that only a decade years ago, the car sales were in the HUNDREDS. It is very obvious the rich are the only ones who can afford these cars -- and the only buyers. While consumer confidence is nil, the sale of high-end durables increased. Wholesale and retail sales hit a five-year low. The statistical office said in its monthly report that the two main indicators of consumer spending fell 3.7 percent, which is the worst showing for wholesale and retail figures in 60 months. The numbers also bode ill for claims by the government that the economy has bottomed out and that it is on the mend. The 3.7 percent drop is the worst since November in 1998 when the figure recorded an 8 percent year-on-year drop. Wholesale and retail sales for Nov 2003 hit record lows despite gains made in industrial productivity.

The report showed that industrial output jumped by 4.7 percent compared with a year earlier on the strength of brisk exports of semiconductors and automobiles. Overseas shipments of semiconductors and automobiles staged a 15.4-percent increase from a year ago while domestic shipments of office equipment, audio and video appliances declined by 2.6 percent.

Broken down, the National Statistical Office said that quarterly sales of projection TVs shot up 68.3 percent from the same period last year. Sales of plasma-display-panel TVs and DVD players rose 259.9 percent and 12.9 percent year-on-year. Deluxe washing machine sales also saw a 5.1-percent rise in the third quarter. Koreans' overseas spending during the first nine months of the year reached 7.37 trillion won, up 360 billion won from the same period last year. The overseas excursions mainly involved golf trips and other extravagant forms of travel. Overseas spending surged 17 percent year-on-year to a record quarterly high of 3 trillion won ($2.5 billion). Thus the rich are spending but the poor are suffering.

Corporate investment declined 8.1 percent from a year earlier as local businesses continued to defer any expansion plans. "Corporate investment seems to be polarized among industries. Export-driven industries are seeing more facility investment, while industries centered on domestic demand such as the service industry are suffering lack of money inflows," an industrial observer noted. Construction orders were off by 15.1 percent and public works projects have trailed off. Factories ran at an average capacity of 80 percent. According to the Small and Medium Business Administration, the number of venture firms that went out of business from Jan-Nov 2003 registered 1,020, reflecting two consecutive years of doldrums in the sector. As a result, the number of start-ups stood at 7,788 as of the end of Nov 2003.

In contrast, the poor are getting poorer by indications of credit card debt. The economy is in the toilet as a recent report showed that 460,000 people entered into a financial workout program to repay their debts. The majority (36 percent) called the working poor who make less than 1,000,000 per month but have more than 30,000,000 in debt. The workout program is the last resort for these folks. Credit card company delinquency rates were on the rise in December. Domestic consumption in the third quarter dwindled 2.7 percent, with the downward curve becoming more pronounced from the 2.5-percent drop the previous quarter. There is not a week goes by without the news reporting whole families committing suicide over financial woes.

The number of Koreans behind on their debt payments for at least three months hit a fresh high of 3.65 million in late Nov 2003, although its monthly increase fell to the lowest level in more than a year. Credit card delinquents decreased, but brokerage house delinquents increased. In a nation of 40 million, this is not a good omen as it equates to almost 10 percent of the nation being financially strapped.

The number of homeless patients Dr. Shin Hak-chul -- known as the doctor to the homeless -- sees in the Seoul Train Station fluctuates with the economy. "In winter of the financial crisis of 1997, I treated about 150 patients a day. Last year, those numbers went down to 80-100 people, but recently, they have gone up again to 120-150," said Dr. Shin. "A few years ago, the homeless didn't lose the hope of recovery, but these days, many have given up." This is a sad statement of Roh's leadership.

Jobs prior to Roh increased by 300,000 a year until 2003, when 40,000 jobs evaporated and economic growth dropped below 3 percent in what is blamed on his failed policies. Foreign business people openly expressed a lack of confidence in the government's policies on labor-management relations. The fact that direct foreign investment shrank 29 percent last year speaks of the change in perception.

Corruption is rampant and the Prosecutors office is having a field day. The illegal political contributions from slush funds that the chaebols PROMISED to stop have been uncovered. The industries seem to be cooperating with the investigators in hopes that this will limit the investigation scope. Trying to use the economy as an excuse that if the investigation drags on, it will hurt the country, the chaebols are trying to wriggle out again. There are about 10 businesses suspected of providing illegal funds during the presidential election of 2002, including Samsung, SK, LG, Hyundai Motor, Lotte, Hanjin, Kumho and Hanwha. The corruption is endless. Builders bribing government officials; ministry officials taking kick backs from arms dealers; all the major parties under investigation for illegal receipt of campaign funds. The list is endless. Korea's image as a country deeply embedded in corruption continues.

Unification Minister Jeong Se-hyun stated that there would be no major changes in the Roh Moo-hyun administration's "peace and prosperity policy" in 2004. Jeong said, "North Korea has been changing toward accepting capitalism through civilian-level exchanges and other continued Inter-Korean exchange programs." "Therefore, we are focusing on economic cooperation projects with North Korea next year," he said. In other words, the South will continue pumping money to prop up the North -- much to the chagrin of the U.S. The latest round of meetings between Japan, the ROK and the U.S. will have no joint communique issued after the meeting meaning that there is a difference of opinion already amongst the three nations who are supposedly to have unity in how to face North Korea. The ROK has rebuffed the U.S. strategy to isolate North Korea.

In Dec 2003, Roh performed a minor reshuffle of his cabinet and appointed some old faces to replace his scarred cabinet ministers. He has given up looking for people who share his reformist political philosophy and chosen ministers based primarily on their public service credentials. Oh Myung, the new minister of science and technology, held ministerial positions three times under different administrations; President Kang Dong-suk of the Korea Electric Power Corp. as construction and transportation minister; and Kim Byung-il, a member of the Bank of Korea's Monetary Board as planning and budget minister.

According to a Korea Herald editorial, "When President Roh made up his original Cabinet, the first criterion was a reformist vision. Particularly noteworthy were Minister of Home Affairs and Autonomy Kim Doo-kwan, a former county office chief with a publishing background; Justice Minister Kang Kum-sil, a lawyer; and Culture-Tourism Minister Lee Chang-dong, a movie director. Kim was forced out by the opposition Grand National Party, while the other two are holding forth despite recurring political offensives. But quite a few other ministers have shown outright incompetence and failure to coordinate their reform plans with other ministries. Their repeated blunders have driven the president to change his pace, if not his course, in a remarkably swift adaptation to criticism from civil society and the media. Certainly, the president initially identified amateurism with reform-mindedness and believed that he could lead an administration of people armed with nothing but youthful passion. But unfortunately, some of his appointees to Cheong Wa Dae had to leave over corruption charges, and some in the Cabinet have been blamed for disarray in their respective areas of responsibility."

President Roh Moo-hyun stunned the nation on 14 Dec 2003 when he said that he would step down and quit politics should his presidential campaign fund surpass a tenth of what the opposition Grand National Party took during last year's presidential campaign. Political analysts said the surprise proposal was aimed at recovering public confidence in his leadership damaged by the involvement of his former aides in a series of corruption scandals. Roh wishes to turn the spotlight on the GNP corruption. Prosecutors revealed in Dec 2003 that the majority GNP received separate illegal donations of 14 billion won from Samsung Group, 15 billion won from LG Group and 10 billion won from Hyundai Motor Co., ahead of the Dec 2003 election for the camp of Lee Hoi-chang, who ran unsuccessfully on the ticket of the GNP. The investigation has broadened to other chaebols.

Kim Jin-hong, a lawyer appointed by Roh as the independent counsel after the National Assembly overrode his veto of a related bill, formed his team to start the probe around 7 Jan 2004. The Constitution exempts an incumbent president from being charged with criminal offenses, except those that threaten national security. Roh stated he would cooperate IF REQUESTED but he would not volunteer. The President has come under pressure that he may be personally involved in the receipt of illegal funds. On 30 Dec 2003 the prosecution said that in Nov 2002, Roh, then the presidential candidate for the MDP, attended a breakfast meeting where illicit money was transferred. Roh left the scene shortly before Moon Byung-uk, chairman of Sun & Moon Group, handed over a check worth 100 million won to the aide, Lee Kwang-jae. It was unknown if Roh had knowledge of the money transfer to one of his aides. The Prosecutor General's Office said it had concluded through a month-long probe that President Roh's close aides received up to 6 billion won (about $5 million) in illegal donations during the presidential campaign last year and that Roh played a part in these affairs.

By March 2004, it was found that Roh's campaign had received 12.5 billion won in illicit funding, while the Lee's campaign had received some 84 billion won. The calls for Roh to keep his promise to resign was raised by opposition parties. The investigators called a halt to the investigation until after the April 15 elections.

A Korea Herald editorial stated, "According to the prosecution's indictment, Roh also instructed that leftover campaign funds for local elections in Busan, his hometown, be paid to Choi Do-sul. If the president did what he is accused of, it definitely constitutes a criminal act. While it clearly implicated the president in these money deals, the prosecution said it decided not to investigate him "because of the constitutional immunity clause and so as not to disturb the performance of his official duties."

However, on 9 Mar 2004, two opposition parties filed a motion to impeach President Roh over violations of election law that prohibits government officials from supporting political parties. President Roh said publically that he would do everything in his power to support the Uri Party. Though a political move just prior to the April elections, it does show how far the animosity has progressed against the President. Roh had pledged to seek a referendum vote of his Presidency if his party had 1/10 of what the GNP had taken. As of March, investigations revealed his election campaign received $12.5 billion won versus the 85 billion won of the GNP...over the 1/10 amount.

On 21 May 2004, the prosecution dismissed all charges against President Roh Moo-hyun and former opposition party leader Lee Hoi-chang in regard to the alleged illegal fundraising by the two political rivals during the 2002 presidential election. Ending its nine-month investigation, the prosecution said it will not pursue action against President Roh or Lee. What makes all of this strange is that the allegations of all these illegal slush funds and fundraising is what brought about the impeachments in the first place. To the world -- the Prosecution just got its chain yanked to call off the dogs. President Roh is back and he doesn't want any more turmoil...and called the investigation "fair." The GNP doesn't want it to continue either, but they called the investigation "unfair." Aides to the former opposition leader Lee Hoi-chang expressed their deep-rooted disagreement with the prosecution, saying its probes into fundraising irregularities during the 2002 presidential race had been "unfair" and "politically charged." South Korea's leading conglomerates, including Samsung, LG and Hyundai Motor, expressed relief as prolonged investigations into their fund-raising scandals have come to an end without an arrest of their owner-chairmen. Unlike previous expectations, chairmen of the Samsung, LG, Hyundai Motor, Lotte and Kumho groups were not indicted, though a number of their deputies were indicted without arrest on charges of delivering illicit political donations to the rival camps of the 2002 presidential election. The Prosecution indicted 21 former corporate owners and executives for taking out illegal loans amounting to 800 billion won (US$666.4 million) from public funds or embezzling enormous sums of company funds for private purposes. Twelve of them were indicted without being taken into custody, but were forced to repay 7.98 billion won in misused public funds. The prosecution has investigated 169 people alleged to have misused public funds and has seized a total of 77 billion won since it launched a probe in 2001 into irregularities involving corporations into which bailout funds were injected after the 1997 financial crisis. Of the 169 people, 75 were put behind bars, 81 indicted without detention, 12 placed on the wanted list and one has been under probe.

The National Statistical Office (NSO) released its "2003 South Korea Social Index" on 21 Dec 2003.

The average adult drank 86.6 liters of alcohol last year, a 7.8 percent increase from 2001's 80.5 liters.

According to NSO statistics, the number of registered emigrants was 11,178 last year, 3.5 percent fewer than the year before, at 11,584. A closer look at the internal factors, however, shows that employment was the top reason for leaving the country, cited by 56.5 percent of emigrants. Joining relatives was 18.4 percent, and business was 14.9 percent. Compared to the 2001 figures, the number of overseas job-seekers increased by 3.9 percent, while other reasons for leaving -- such as marrying a non-Korean -- declined. An official at the NSO said that the change is a reflection of the domestic economic slump; more people are dreaming of establishing a new life in other countries through overseas employment.

The average monthly income for city households was W2.79 million, who spend W1.82 million of their total salary. The householder -- usually the husband -- accounted for 68.2 percent. In 1990, however, the average householder earned 73.3 percent of the total income. The proportion of the wife's income was 9.6 percent, 3.5 percent more than that of 1990. The change is attributed to the increased participation of women in the job market.

In addition, educational expenses recorded 10.9 percent of the total household monthly expenditures, the sixth consecutive year that educational expenses went over 10 percent. An official at the NSO said that despite the economic slump, people consider their children's education a priority. They first cut back on other expenses, the official said. However, as the economic conditions worsened, people were cutting back on these expenses as well by Dec 2003.

Setting the income level for high school graduates at 100 points, college graduates had an average income of 153.8 last year. In 1999, the ratio between high school graduates and college graduates was 100 to 159.5. The income gap between education levels is getting smaller, a result of early retirement and changing work priorities that value ability over education, the NSO said.

The number of marriages has steadily decreased over the last 10 years: last year, there were 307,000 registered couples, 13,000 fewer than 2001's 320,000 couples. With the drop in the number of married couples and increasing rate of divorce, the birth rate was at it lowest point ever, at 1.17. A birth rate of 2.1 is the minimum required to sustain a population.

Korea's tourism industry has been deep in the red since the outbreak of SARS in Asia earlier this year. The rates for Sep and Oct 2003 were down ten percent, but in Dec 2003 it was down only 0.3 percent. However, the increase in Chinese tourism was up 29 percent.

With all the things going wrong with Korea, stories like the 29 Nov 2003 accidental radioactivity leaks at Yeonggwang No. 5 nuclear power plant (100 kw reactor) in South Cholla Province did not even raise an eyebrow. "Minimal radioactivity" (whatever that is) leaked out. The Chile FTA was in hot water over approval with bloody farmer protests -- though it finally was passed in Feb 2004 after a string of bloody protests. But Korea excluded rice, apples, and pears, the sensitive commodities for Korean agriculture, from the treaty. Grapes won't be subject to the treaty in the country's peak season between May and October. Apples, pears, and grapes are Chile's major exports that make up 62.2 percent of its trade. As a result, the FTA won't affect Korea's agriculture. In effect, the FTA seems rather hollow though the numbers of items with reduced tariffs looks impressive.

With bird flu wiping out the chicken/duck populations and the Mad Cow disease scare from the U.S. -- the business in restaurants declined 30 percent. By Feb 2004, there were signs that the advertising hype to get the people back to eating chicken was working. Essentially it was preaching that the disease has NEVER jumped to humans in Korea -- though most medical authorities would call this type of hype irresponsible. The U.S. beef market slammed shut, though the MSG manufacturers who use U.S. byproducts refused to stop their production.

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Roh Calls Yongsan "Symbol of Foreign Intervention, Invasion and Dependence" and Stabs at Japan According to the Associated Press on 1 Mar, ROK President Roh Moo-hyun called for a foreign policy more independent of the US and criticized Japan for its militaristic past, targeting his country's two biggest allies in the DPRK nuclear crisis. Giving a nationally televised address marking Korea's March 1, 1919, uprising against Japanese colonial rule, Roh dismissed criticism that his foreign policy has fueled anti-Americanism among young South Koreans.

"Let's not talk about whether we are pro-American or anti-American," Roh said to rousing applause. "Whether we are pro-US or anti-US cannot be the yardstick to assess ourselves." "Step by step, we should strengthen our independence and build our strength as an independent nation." Roh hailed a recent US-ROK agreement to pull US troops out of the Yongsan district of central Seoul, reminding people that Yongsan has been occupied by foreign forces for more than a century and calling the area "a symbol of foreign intervention, invasion and dependence."

Japan offered another apology for its colonial period actions against Korea to offset this criticism. This is the second time that Japan has done so in recent years. ROK President Roh Moo-Hyun urged Japan's leaders to stop stirring anti-Japanese sentiment in comments taken as a reference to visits by Prime Minister Junichiro Koizumi to a controversial war shrine. "A national leader should not behave like reckless members of the public or politicians who are driven to gain popularity," Roh said. The remarks were seen here as Roh's strongest criticism yet of Koizumi's trips to the Yasukuni Shrine honoring Japan's war dead including convicted war criminals. The memory of Japan's harsh colonial rule from 1910-45 is still vivid here, Roh said, adding the two countries should refrain from deepening the wounds. "(Japanese leaders) should not think that every problem has been solved just because Korean leaders do not bother to point out unresolved historical problems with regards to Japan's law and system," Roh said. "We have to think about how to lead a new order in Northeast Asia in a calm and cool way." Since taking office in 2001, Koizumi has made four visits to the shrine.

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Roh Impeachment (Mar 2004)

Impeachment Motion Passed: Roh Suspended (12-19 Mar 2004) On 12 March President Roh was impeached to the shock of the nation. However, he had repeatedly threatened to resign in the past as political ploys -- and it now came back to haunt him. In October 2003, Roh announced he would hold a referendum on his leadership and promised to step down if he lost. The vote, originally proposed for mid-December, was postponed indefinitely amid legal concerns as some suggested it was unconstitutional. Then Roh repeatedly stated that he would resign if the amount of his illegal slush funds for the 2002 presidential election were found to have exceeded a tenth of that for the main opposition Grand National Party (GNP). Though the prosecutors claim that Roh's side took in about 11.2 billion won ($9.4 million) from South Korean businessmen, Roh disputes the claim that they did. The GNP supposedly took in 84 billion ($72 million). The probe was suspended until after the April 15 elections.

But the impeachment was justified NOT by the larger issues, but by a trivial issue. The reason he was the object of the nation's first impeachment motion was that he voiced publicly his support for the Uri Party (Our Open Party). This was against the local election law that states that government officials in office must remain neutral. However, some still question the legality of the ruling. Roh is a politician as well as President. He was ELECTED to office (not appointed) and in that sense has a dual hat -- government official AND politician. Normally, the President is the head of his party -- but Roh is unaffiliated. The election watchdog ruled against him -- a first in itself as it has never been done for a standing President. Though Roh stated that he respects the National Election Commission ruling that bans public officials from campaigning for a political party, he stated he had the right to say what he did. (NOTE: After Roh was impeached, the official ROK news agency, Yonhap News, stated, "The parliamentary row began over Roh's news conference on Feb. 24 during which he said he would do "whatever I can within legal bounds" to help pro-government candidates in the general election. The National Election Commission ruled that it was hard to judge whether Roh's remarks violated election laws but asked him to make efforts to maintain neutrality on the election." These remarks are strange as the NEC ruled his remarks were illegal which started the row.)

The Opposition leaped on this as an excuse to demand an apology. Roh refused to make a public apology which started the ball rolling. The Millennium Democratic Party (MDP) launched the impeachment motion. The impeachment proceedings started on the 9th of March, but legislators from the Uri Party held the Assembly chamber hostage for three days. According to the Korea Herald, "At 4 p.m. 11 March, 160 legislators from the GNP and MDP entered the main hall of the Assembly determined to vote. They decided to take the action after the president was found to have violated political neutrality statutes by calling on voters last month to support the Uri Party in the April 15th National Assembly election. Hong Sa-duk, floor leader of the GNP and Yoo Yong-tae, floor leader of the MDP, said that the necessary two-thirds majority, or 181 votes, to impeach Mr. Roh had been secured." However, the Uri Party members blocked the podium and after the session camped out on the floor of the chamber. Under the constitution, an impeachment bill must be acted on within 72 hours or it becomes moot. Thus the deadline was 6:27 p.m./12 March.

The atmosphere started going insane outside the National Assembly building. On 11 March, Baek Eun-jeong, a 51-year-old member of Nosamo, an Internet-based support group for the President, set himself on fire in front of the gate of National Assembly. Baek suffered burns over 40 percent of his body, was rushed to hospital and is now unconscious. He left a suicide note saying, "No politician can have the right to reprimand President Roh."

On Friday morning (12 Mar), Roh apologized on TV for the turmoil, but he did NOT apologize for his remarks in support of the Uri Party. In a nationally televised news conference, the president flatly refused opposition's demand for an apology for violating a law requiring electoral neutrality. While Roh failed to show remorse for the Elections Law violation, he apologized to the public for controversies over slush funds and corruption scandals involving his close aides and relatives. President Roh Moo-hyun played another political wild card, suggesting he will step down if the pro-government Uri Party failed to acquire due support from voters in the April's general elections. However, he was vague about how well the Uri Party would have to do to give him a vote of confidence. This gave him a way out if the Uri Party took a nose dive. Roh was still officially unaffiliated.

A tragic spin off of this interview is that the former president of Daewoo Engineering and Construction up to 2003, Nam Sang-kook, jumped off a bridge into the Han River yesterday after President Roh Moo-hyun accused him of bribery in the nationally televised news conference on 12 Mar. Nam was suspected by prosecutors of providing 30 million won ($26,000) in bribes late last year to Roh Geon-pyeong, the president's elder brother -- which Roh says was returned. Roh's tactic was to blame the rich guy as evil and portray himself and his brother as the innocent poor. The president's press conference was shown live on all three non-cable networks, KBS, MBC, and SBS, and on the cable news network YTN. According to a Chosun Ilbo editorial, "So when the most powerful man in the land mentions him by name and says that "people from good schools" who have "succeeded in a big way" nevertheless "go to people of no significance in the countryside and kowtow before them and give them money," you can sense that Nam must have felt insulted." Mr. Nam reportedly called a Daewoo aide, identified as Mr. Shin, and said, "My name is on the air. How can I face the world without shame when I've been branded a criminal? I will disappear, taking all responsibility."

The street scenes started getting out of hand dealing with the impeachment proceedings. Outside the National Assembly, Kim Nam-shik, 44, a businessman, protesting the attempt by lawmakers to impeach South Korean President Roh Moo-hyun crashed his car into the main building of the National Assembly early on the 12th and set the car on fire after he poured containers of gasoline onto the car. He claimed he did not support Roh, but rather hated ALL politicians. Hundreds of activists gathered in front of the National Assembly building ahead of a planned vote on an impeachment motion against President Roh Moo-hyun. Some 1,200 members of Nosamo, Roh's internet support group, demanded that the motion be withdrawn, and chanted, "No impeachment and no more political chaos." A similar number of Conservative demonstrators supporting the impeachment bid held their own protest on the opposite side of the street. (See OhMy News Video of Roh Supporter Rally.)


Left: Conservatives Rally (12 Mar 04) Right: Roh Sa-mo Group Rally (12 Mar 04

On the morning of 12 March, the National Assembly passed South Korea's first-ever presidential impeachment motion, suspending President Roh Moo-hyun from office. The pro-government Uri Party's strategy had been to block the speaker's podium to prevent a vote on the motion. When they tried to block the podium and sat in the Speaker's seat so Speaker Park Kwan-yong could not preside over the impeachment vote, Speaker Park invoked his powers to maintain order in the parliament. That's when all hell broke out in the chambers. (See OhMy News Video of Uri Party Taking Over Podium.)

At around 11 a.m. on March 12, the assembly speaker entered the main hall of Parliament escorted by opposition lawmakers and security guards. Lawmakers from the Uri Party, who were occupying the speaker's seat, were forcibly removed from the podium. Both opposition lawmakers and security guards dragged pro-Roh parliamentarians of ruling but minor Uri Party from the floor of the assembly. The scenes were aired live on national television.

They were physically ejected from the chamber by security guards and legislators -- some leaving quietly, while others screaming and kicking all the way out. The struggle was prolonged as the supporters had to be carried one-by-one screaming and struggling from the room. The Uri members who remained after the podium was cleared continued shouting and throwing things at the Speaker -- while others tried to rush the podium again.

Roh Supporter Ousted from Podium (12 Mar 2004)

National Assembly Speaker Park Kwan-yong Announces Vote (12 Mar 2004)

The National Assembly held the vote on the impeachment motion at 11 a.m. During the balloting, which lasted for about 50 minutes, opposition lawmakers violently scuffled with Uri Party members. Uri Party members abstained from voting. The motion passed 193-2. Voting to impeach were 129 lawmakers from the Grand National Party, 53 from the Millennium Democratic Party, eight from the United Liberal Democrats and five independent lawmakers. Passage required a two-thirds majority, or 181 votes out of a total of 271 parliamentary seats, to impeach.

After the vote was ratified, the Opposition Parties left the chambers leaving Roh's supporters sitting and crying in frustration on the floor of the chambers. The 46 members of the Uri Party resigned from the National Assembly enmasse leaving their signed resignations on the table in the chamber. This gesture was merely symbolic as the Parliament is no longer is session until after the April 15 elections for which they are up for reelection.

The Uri Party retracted their resignations on 22 Mar supposedly due to the problem of getting the unified number of party candidates for the general elections. If the party lawmakers step down, each of its party candidates will receive a randomly picked number instead of unified No. 3 and the party will also have to give up some five billion won in subsidies from the government. According to the Korea Times, "In a statement adopted at the end of a party caucus, the party expressed profound sorrow for failing to keep to their promise they would abandon the parliamentary seats. The statement went on to say ``It would be better to candidly acknowledge and seek for the (people's) pardon rather than mentally agonizing over the seemingly unfeasible promise.'' Despite the explanation, the party's move is expected to trigger severe repercussions from the people at large and the opposition parties, as it presents a taint to the party which has focused on morality and freshness."

Prime Minister Goh Holds News Conference (12 Mar 2004)

The Prime Minister called an emergency meeting of economy- and security-related ministers, as well as an extraordinary cabinet meeting, where he urged ministers to do their best to minimize the impact of the impeachment on the national economy and to maintain consistent economic policies to prevent Korea's international credibility from falling.

Roh Support Rally (12 Mar 2004)

International ridicule abounded as people around the world viewed the footage of the Roh supporters being hauled physically from the National Assembly. MBC news showed clips from CNN, NBC, ABC, BBC to just name a few. CNN.com listed the Roh crisis as its top story with the headline, "South Korean President impeached amid physical battle." The New York Times reported that the impeachment "also raises questions about how the country's budding economic recovery and international attempts to stop North Korea's nuclear weapons ambitions would be affected." The Asahi Shimbun, reported, "South Korea's political circle hit a unique crisis in which the country's top leader is suspended." It predicted that with the president's powers on hold, decisions on crucial issues such as foreign affairs and national security would be of great concern. The Japanese daily warned that major damage to the country's reputation was unavoidable.

A Seoul Times comment read: "The grotesque scenes in the National Assembly last week were beamed around the world for all to see. Scenes of sweaty politicians grappling and spitting while hurling missiles and breaking down into tears made the supposed leaders of South Korea look more like spoilt children than leaders. Of course the Korean media are far too insular to worry about the effect of these kindergarten antics on the rest of the world. "Koreans are emotional," one local pointed out to me with a shrug, as if their lack of emotional maturity was something to be dismissed as a genetic quirk. Those who propose to make Korea the "hub of Asia" should surely be aware that pictures of grown men crying and fighting only makes this country a laughing stock."

(SITE NOTE: The whole impeachement process was stupidity in action. For the sake of their GNP/MDP party pride, the legislators took a step that shocked the country and caused the bourse to bottom out. Instead of considering the effects to the nation, they focused on the April 15 elections and capturing power for their parties. The Korean people are justified in condemning their legislators -- but they are also to blame as they elected them there in the first place.

Though we have no love for Roh and his politics, this was a WRONG move by the National Assembly. However, as an American who watched Bill Clinton get reelected after his philandering and White Water Scandals -- followed by his perjury in his denial of relations with Monica Lewinsky and disgrace over having sex in the Oval Office, the justification for Roh "impeachment" is a triviality. The motion's passage is a fiasco and farce. The justification for this impeachment motion was simply political and trivial, but the impacts to the nation were not trivial. What the GNP/MDP did was wrong!!!)

According to the Korea Herald, "Some were ashamed, others angry and many fearful of how the decision would affect the country. Results of the impeachment vote came at 11:55 a.m. .. Many huddled around televisions in supermarkets and shops around the country. Some sighed at the speaker's announcement, others simply shook their heads. .. "It is so lamentable," office worker Kim Jong-wan, 40, said. "It is so shameful at the same time. The impeachment will cause great disruption. I am afraid that it will endanger our economic and political situation." Said civil servant Lee Dong-hun, "I was so disappointed by the politicians. I am too frustrated to say anything else. The lawmakers' behavior is mean and childish." .. Some agreed with the impeachment and predicted better times ahead. .. "It is the proper decision though some confusion may follow for the time being," homemaker Lee Eun-young, 34, said. "But the country will be soon be stabilized when a good and qualified president takes office instead of Roh." Business owner Lee In-geun, 58, agreed. "President Roh must resign owing to his misgovernment," he said. "If he stays in power, Korean society cannot avoid more confusion." .. Most who spoke with The Korea Herald opposed the impeachment. And a poll taken just days before the vote suggested about 60 percent of South Koreans felt the same way. .. "It is ridiculous," said angry office worker Lee Sun-young, who is in her 20s. "If someone has to be impeached for small things like President Roh was, all politicians in Korea must be impeached. Today will be recorded as a shameful day in our history." Yonsei University student Jamie Kais said, "He did not do anything bad enough to be impeached." Like many others, this foreign student fears the National Assembly's decision will plunge the country into confusion. Roh's immediate predecessor, former President Kim Dae-jung said, "Today's impeachment predicament is a very serious situation," according to his aide Kim Han-jung. "What goes around comes around," former President Kim Young-sam said. "I hope the country stablizes fast," he was reported as saying by Grand National Party Rep. Park Chong-ung, who acts as Kim's spokesperson.

Seoul Crowd (12 Mar 04)

On 15 Mar 2004, the Yonhap News reported "Tens of thousands of South Koreans staged a candlelight vigil in downtown Seoul and other cities Sunday for a third day to protest the parliamentary impeachment of President Roh Moo-hyun. About 50,000 people gathered in the Gwanghwamun area of Seoul for a candlelight vigil to show their support for the impeached president as well as to denounce what they called an "impotent" parliament. On 13 Mar (Saturday), an estimated 70,000 protesters participated in a similar rally." Similar protests on a smaller scale were also held in 12 cities across the nation, including Busan, Gwangju, Daegu, Daejeon and Chuncheon. Along with the pro-Roh demonstrations, the conservative ranks turned out in much smaller numbers to support the impeachment. However, by 15 Mar (Monday) the candlelight vigils were down to about 3,500-5,000 people who gathered in the Gwanghwamun area. The protests were peaceful. The 16 Mar (Tuesday) rally was down to 3,000. On 17-18 Mar (Wednesday-Thursday), the attendance was down to about 1,500. The attendance on 19 Mar (Friday) was about 2,000. As a nation, most of the people have remained calm awaiting the results from the Constitutional Court.

Seoul Impeachment Rally (19 Mar 04)

However, the anti-impeachment rallies were taking on the tone of a pro-Uri party rally. Thus the government warned the leaders of the NGO groups that such activities of political rallies must be reported and controlled. The Seoul Metropolitan Police announced that the anti-impeachment candlelight protests being held in the Gwanghwamun area of Seoul violate laws against nighttime demonstrations and are, hence, illegal. To get around the ban on political rallies, the organizers are planning to call the rallies, "cultural events." Cultural events do not have to be reported to the police to be staged at night. This was the same tactic used in 2003 to stage anti-American rallies when street demonstrations were outlawed. The rallies became memorial services (or "cultural events) for the two girls accidentally killed in June 2002.

However, the Police stated that the 16 Mar rally was not a "cultural event" and planned to take "legal measures against the event organizers in accordance with laws on assemblies and demonstrations." Organizers renamed the candlelight vigil the "Impeachment Annulment and Corrupt Politics Liquidation Cultural Festival." Though they did not take up road space, when police looked at the speeches, slogan chanting, distributed literature, song lyrics and other things, they couldn't find any real difference with the 15 Mar political rally.

However, the anti-impeachment groups urge citizens to participate in the demonstrations via email messages and text. Meanwhile at the demonstration scene, 1,000 volunteers make sure demonstrators observe the police line. When the demonstration ends, participators voluntarily clean the scene and collect garbage. They try to prevent candlelight demonstrations from being used as a cause for political attack. This is much different than past "candlelight" vigils which erupted into violence.

Police beefed up their security around regional offices of GNP and MDP out of concern that protesters may attempt to force their way into the offices. Security was also extended to the conservative newspaper offices of the Chosun Ilbo and Donga Ilbo which President Roh had labeled the "Gangster Press." On the internet, both the GNP/MDP and Uri Party bulletin boards have been filled with obscene posts of no substance except to denounce the politicians. Reeling from the backlash, the GNP and MDP have accused the media of formenting the dissention -- particularly the government affilitated KBS and MBC. KBS will do a review of the claims of the lack of impartial reporting as it concentrated on the Roh-supporter side of the story during the initial days of the crisis. According to GNP chairman Choe Byung-yul, the current standoff over presidential impeachment is a "life-and-death fight" between the "radical forces" -- the 550 radical NGO activist groups united under the Pan-Korea activist umbrella -- and the "moderate" elements attempting to protect a democratic society. It appeared that the GNP was shifting its strategy to deflect some criticism by claiming the impeachment was about the illegal campaign promise by Roh AND the illegal contributions issue.

Prime Minister Goh instructed the ministers to maintain three principles - strict neutrality on the part of government officials, cracking down on illegal electioneering and no partisan favoritism in policy planning and administration, according to Joung Soon-kyun, head of the Government Information Agency. "The Justice Ministry will guarantee voters' rights to participate in political activities, but will sternly deal with illegal election campaigns conducted under the mask of anti- or pro-impeachment rallies," Joung said. Police announced they would punish organizers of candlelight vigils for any failure to notify authorities in advance as stipulated by law.

There were no signs of instability along the border with North Korea, but South Korea's 700,000-member military and its 170,000-member police force remained on alert. On 14 Mar, North Korea denounced the South Korean parliament's impeachment of President Roh calling it a "political rebellion" and parliamentary coup.

According to the Stars and Stripes, the USFK maintained a "heightened sense of security awareness" along with the South Korean military after a turbulent week that left South Korea without a president. The heightened security awareness means no changes in the military's status, merely that the command is noting the situation and monitoring it. USFK declined to issue a statement on the impeachment.

CFC chief Gen. Leon LaPorte and deputy Gen. Shin Il-soon met with Defense Minister Cho Young-kil and Joint Chiefs of Staff officials on 13 Mar to relieve the public's anxiety regarding security. South Korean forces were put on a "strengthened posture" after Friday's impeachment but their Watchcon — an intelligence surveillance posture monitoring North Korea — remained unchanged. U.S. bases reported no unusual activity. American Forces Network advised U.S. personnel to stay away from certain areas with protesters.

Go to Kunsan AB Protests: Impeachment of Roh for continuing details of protest and political updates of this mess Roh has led his country into.

Roh's Plans after Impeachment Settled According to the Donga Ilbo on 22 Apr, the President contemplated how he would handle the government after his impeachment was settled. In meeting with the Uri Party leaders on 21 Apr he offered several principles for future actions. He stated that he would initiate "Horizontal Relations between the Uri Party and the Administration" to ensure the autonomy of the party by not intervening in the candidate nomination process and the appointment of party officials and the Office of Political Affairs will be reduced in influence. He would join the party after the impeachment proceedings were settled.

Roh stated that the "Uri Party and Cabinet will have Policy Initiative" in outlining domestic policy. He showed his willingness to give considerable initiative, if not entrusting the prime minister with full executive powers, to the cabinet and the party in the implementation of major policies. According to the article "President Roh believes much damage has been done in the past year as he attempted to lead every single policy head-on. By intervening in every single socially sensitive issue, he has wrought unnecessary havoc on his leadership." He promised to "step back." Expectations are that the prime ministers and cabinet members will lead government operations in close cooperation with the party. A shakeup of the government will take place consistent with the new initiative after the impeachment proceedings.

Roh stated that he would open "dialogues with the Opposition Party." He promised that the overall tone of his relations with the opposition party would change drastically. President Roh had always chosen to challenge the GNP head-on. With the Uri Party commanding a majority in legislature, he believed that he now had much more room to maneuver.

Roh Impeachment Reversed (May 2004) Though the Roh impeachment was reversed on May 14th, the Constitutional Court did not reveal the dissents indicating that the decision was not unanimous. The opinions of the dissenting judges were not released.

Constitutional Court Rules in Favor of President Roh

By Park Sang-soo

SEOUL, May 14 (Yonhap) -- The Constitutional Court overturned parliament's decision to impeach President Roh Moo-hyun Friday, ending 63 days of leadership crisis in South Korea.

The decision, which had been widely expected, immediately restored Roh's executive powers, which have been suspended since March 12. The opposition-dominated National Assembly voted to impeach him on charges of illegal electioneering, corruption involving his aides and incompetence.

The parliament's impeachment, the first in South Korea, was subsequently referred to the Constitutional Court which had 180 days to decide whether to uphold it. Under Korean law, the court has the ultimate say on the case.

The court's decision was tantamount to giving a new mandate for Roh during the remainder of his single five-year term until early 2008. With his popularity nose-diving, the 57-year-old president once proposed holding a referendum on his presidency and said he would step down if he fared poorly.

The political turmoil triggered by the impeachment proved that South Korea's dynamic democratic system is firmly in place after decades of dictatorships since the country's founding in 1948.

With Prime Minister Goh Gun taking over as interim leader, South Koreans calmly waited for the court's ruling while electing a new parliament. There were no noticeable signs of political and social unrest.

The court said its nine judges were split over the decision but did not stipulate who and how many were for or against the impeachment. It gave no clear reason for keeping the information under wraps.

Two-thirds, or six, of the nine judges would have had to vote for impeachment to have permanently ousted Roh from office.

"The court's decision is no surprise," said Lee Nae-young, a law professor at Korea University. "The public already has passed judgement on the case by giving Roh supporters a clear victory in last month's parliamentary elections."

The development is a dramatic swing around for Roh who was pushed to the brink of what would have been a disgraceful fall. With his popularity dropping sharply, his future once looked extremely shaky in the face of a hostile parliament and unfriendly media.

Roh's problem came to a head in February when he, responding to a reporter's question at a news conference, appealed for support for the pro-government Uri (Our) Party in the April 15 parliamentary elections.

The national election watchdog ruled that though Roh's remarks had violated election laws, they were not serious enough to oust him from office. But the opposition parties pushed through the impeachment anyway.

Thanks to voter backlash, the Uri Party won a resounding victory in the elections, more than tripling the number of its seats from 49 to 152 in the incoming 299-member Assembly which opens on May 30.

The main opposition Grand National Party saw its presence shrink from 137 seats to 121, and its smaller allied opposition Millennium Democratic Party had its number of seats plummet from 61 to a mere nine.

The polls also saw the Democratic Labor Party gain its first parliamentary presence with 10 seats.

The results put in place a liberal-controlled parliament for the first time in South Korea, an additional boon for Roh who is eager to push forward his trademark reform policies with vigor.

With "Vindication" in Hand of Impeachment, Roh Turns "Leftist"

ROK Economy Crumbles (Oct 2004)

Situation in Korea Becomes Confused: Too Many Issues Attacked All at Once (Oct 2004)

• Troop Relocation and Cost Sharing In Sep 2004, the ROK dispatched the Zaitun (Olive branch) troops to Iraq in great secrecy. The troops were sent to a relatively safe location out of harms way. At home, there were protests in Oct from the anti-War NGO groups, but very little public reaction as it sunk in that if they raised waves further, the US might accelerate the withdrawal of troops from the ROK. The ROK "extended" the troops in Iraq until Dec 2005 -- though it was simply eyewash. In February, the South Korean parliament approved the dispatch of up to 3,600 troops for relief and rehabilitation in Iraq until December 31, 2004. But the dispatch was delayed for months against a background of growing anti-war protests and it was only in late September that South Korea completed the deployment of 2,800 troops in Arbil. The mission is to be reinforced by another 800 troops in November, just a month before the mission is formally to expire. The South Korean government attempted to impose a tough media blackout on the deployment, citing security reasons following the execution of a South Korean translator by Islamic militants in Iraq in June. The cabinet will soon ask parliament to allow up to 3,600 South Korean troops to stay in Arbil, a Kurdish-controlled town in northern Iraq, until the end of 2005. However, if one ROK troop is killed the situation might change very rapidly to demands for a pull-out.
  
  
  
  
  Anti-War NGO Protest of Iraq War Seoul (16 Oct 2004)

  The ROK "begged" the US to slow down its withdrawal plans and the US acquiesced -- not because of the ROK, but because Article 9 of the Japanese Peace Constitution put an end to relocation of its troops to Camp Fuji and Camp Zama. The Japanese could not allow forces that could be used for external military action (deployments) being stationed on its soil. The US originally has stated that it would withdraw 12,500 troops by 2005. The troop cut plan now calls for withdrawing a total of 12,500 troops in stages by 2008. About 3,600 troops have already left the peninsula and 1,400 more will do so later this year. Another 5,000 Americans will also deploy out of South Korea in 2005-2006 and 2,500 in 2007-September 2008.
  
  However, right on the tails of this, the ROK has decided to attempt to renegotiate the cost sharing formula. Going into the 22 Oct Security Consultative Meeting (SCM) with this position may result in some interesting outcomes. The bottomline is that the US is playing hardball and it is no longer tolerating the ROK government "stall-and-conquer" techniques. The ROK stands to lose a great deal following this position, but the Uri and DLP parties are now inciting the public over this issue. The position is that since the US is pulling troops out, the cost sharing for the ROK should be less.
  
  The Yongsan base relocation agreement outlines the moving of the Yongsan Garrison to Camp Humphreys by 2008. The accord commits Seoul to finance all the relocation expenses as it was the party to propose the transfer. The relocation is projected to cost between US$3 billion and $4 billion, according to South Korea's estimate. Civic groups have protested the terms, claiming that Washington should share the cost because it also wants the relocation as part of its global force realignment strategy, known as the Global Defense Posture Review or GPR. However, the MND has stated to the National Assembly that the Yongsan relocation and GPR are two separate issues. However, Roh has voiced his displeasure over the "negotiated" settlement. In Oct 2004, there was a great amount of discussion over the move in the National Assembly with the Uri and DLP parties leaking the documents to the press to generate public support for action. However, the Yongsan relocation has been approved by the cabinet and is expected to pass the National Assembly. If not, there will be dire consequences for Korea.
  
  Despite the troop reduction, Seoul's burden could actually increase if the U.S. request to share the cost for the C4I improvement project is accepted. The cost-sharing negotiations will begin in earnest next month with a target of reaching an agreement before the end of this year. South Korean officials had expected its burden for next year would be lower because the U.S. has begun reducing the number of its troops. The Roh government was entering the 22 Oct Security Consultative Meeting (SCM) seeking to reduce the cost sharing formula for the ROK. There is a distinct possibility that the US may react by speeding up its troop removal schedule again. This is a biggee -- that the US will NOT let the ROK get away with.
  
  

• DPRK Issues Tensions are increasing over the flow of defectors to the ROK. Suddenly the ROK has revealed that its plans for the defectors are inadequate and they need more space and better educational programs. Most of the past defectors remain in poverty and many have resorted to crime. The program is swiftly becoming a nightmare as more and more defectors attempt to storm embassies and foreign schools in China to demand defection to Seoul. 300,000 DPRK defectors are estimated to be in China. On one hand, the ROK officially mouthes support of the defectors, but in actuality is actually doing very little unless forced to by NGO groups because it fears it would disrupt the relations with the DPRK. China has been allowing defectors to "escape" to third countries for transit to Seoul, but this is on a case-by-case basis. NGO groups are pushing for the establishment of refugee camps in Mongolia now that the US Human Rights Act is in effect -- and the US has proposed this before.
  
  The dramatic opening of the doors was due to the US North Korean Human Rights Act that was signed into law in Oct 2004 by President Bush. Under this bill, the US would accept DPRK defectors and authorizes $24 million a year in humanitarian relief through 2008. However, this places the US in conflict with the ROK as the DPRK defectors supposedly have automatic South Korea citizenship. However, the measure says North Koreans should NOT be denied refugee status or asylum in the U.S. simply because South Korea automatically considers them citizens. The U.S. often denies such status to refugees who are welcome in other countries. But what this bill also does is give the US first dibs on defectors with intelligence value -- which the ROK does not like one bit.
  
  The US and ROK continue with divergent approaches to dealing with the DPRK. While President George W. Bush's administration has set high barriers to helping the DPRK insisting that it get rid of its weapons first, President Roh's government is seeking a reciprocal approach. The Roh government calls its human rights stance to DPRK its "silent diplomacy" meaning they don't talk about it.
  
  The ROK has pushed forward with the Kaesong project and the road crossing the DMZ is anticipated to be carrying 2,000 vehicles soon in cross border traffic. The signing of the agreement for the operation of Kaesong will be signed in October. The marriage between the DPRK's rock-bottom wages and the ROK's capital and technology has so excited Seoul that on Oct. 20 almost a quarter of the ROK's National Assembly members travelrf by bus to Kaesong, DPRK, to inaugurate the Kaesong Industrial Park. Most of the technology issues have been ironed out by the US-ROK meetings -- but the ROK is still protesting that certain high-tech machinery is required in Kaesong. There are suspicions that the ROK companies may violate the agreement secretly as it has been revealed how ROK companies have been shipping banned commodities (dual-use products) to North Korea through third countries.
  
  The ROK's "scientific experiments" with plutonium and enriched uranium have proven to be a great embarassment to the US in negotiating with the North. The ROK was attempting attempting to pooh-pooh away a nuclear experiment done three times out of "scientific curiousity" in 2000 during the Kim Dae-jung administration. The revelations by South Korea that it had enriched nuclear material in atomic vapour laser isotope separation (AVLIS) experiments in 2000 in contravention of its international nuclear safeguard obligations cast further doubt on the next round of the Six-party Talks aimed at resolving the North Korean nuclear problem. Later it admitted to extracting plutonium in 1982 during the Chun Doo-hwan era -- then stated that some of it was "lost." The ROK claims that the material was "misidentified" in the report -- a technicality.
  
  Thus the ROK experiments with both plutonium and HEU extractions are fact. Concerned that the IAEA will condemn the ROK for conducting nuclear experiments barred by its obligations under international treaties, Deputy Foreign Minister Choi Young-jin went to the US and other countries in October to present the ROK's view to US officials. The ROK and US are at odds over whether the UN Security Council should be called in to assess Seoul's nuclear program. The US considers it unavoidable, while Seoul opposes it.
  
  The ROK revealed the communications from the DPRK to operatives and pro-Pyongyang organizations in the ROK have remained steady in recent years at around 80,000 messages annually, but only two to four DPRK agents are nabbed in the country every year. The emphasis of those messages being decoded is for information -- not action on the part of the agents. Spies captured have entered from other countries -- not through infiltration. The message is that since 1992 after Kim Dae-jung's tenure, there has been a dramatic drop in capture of spies -- with the inference that no one is looking very hard any more.
  
  

• National Security Law The GNP party was poised to boycott the legislation to bring about a face-to-face showdown over the Uri Party's competency. The Uri party, which gained a majority in the National Assembly in the April 15 parliamentary elections, has failed to show its leadership so far, and the legislative move will act as a double-edged sword for the embattled party. It can be an opportunity for the Uri Party to recover its reformative image, but it may further lose its support base if it backtracks on the reform measures.
  
  The Uri Party has less than two months to push through the bills, which call for abolition of an anti-communist law, a painstaking review of modern history, regulation of the media and reform of private schools. The ongoing regular session of the Assembly ends on Dec. 9, and the proposed bills will automatically be scrapped if they fail to receive parliamentary approval before the deadline. The Uri Party, which plans to submit the bills to the Assembly by Oct. 20, has ratcheted up the pressure on the main opposition party.
  
  However, there are some Uri party members belonging to the "Lawmakers' Society For Secured Reforms" who have been opposing their party platform regarding scrapping the security law and have even considered resigning from their party posts. This move has sparked deeper strife within the party circle. There may be an open schism in the party leadership over this issue.
  
  
  
  
  Seoul Conservative Protest of NSL Abolition (4 Oct 2004)

  At the center of the deepening political bickering is a far-reaching law that bans South Koreans from having contact or sympathizing with North Korea. The Uri Party has decided to scrap the NSL, which was often used by former authoritarian leaders as a tool to suppress dissidents. The Uri party aimed to revise the criminal code to take the place of the NSL coverage for crimes of espionage and rebellion by illegal organizations with the aim of overthrowing the government.
  
  The GNP, backed by conservatives, has strongly opposed the proposal, claiming it will make applying the law more complex. The GNP position is that scrapping of the National Security Law is a renunciation of the minimum mechanism for protecting the country from threats by North Korea. The National Security Law, established in 1948, regards North Korea as illegally occupying South Korea's territory, and does not acknowledge it as a country. GNP lawmakers argue that the Uri Party's actions will lead to the legalization of communist forces in the country.
  
  The Prosecutor's office refused to make a direct comment on the issue, saying it would be inappropriate for the judicial branch office to evaluate a legislative process. However, prosecutors raised concerns over an inevitable security breach, saying the revision will not allow prosecution of those "clearly" working or even spying for the communist North as long as their activities are not aimed at causing domestic violence. The revision will supposedly strengthen the criminal code but limit prosecution to those trying to cause domestic conflict or civil war. There will be no way to prosecute those working for North Korea or pro-Pyongyang organizations as long as their activities are not directly aimed at causing a civil war. Prosecutor general Song Kwang-soo claimed that the ruling party did not ask for his input on the issue of the repeal of the National Security Law. As for the question of whether the National Security Law infringes upon human rights, Song said that there may have been cases of human rights abuses in the past, but he does not believe there has been one since the Kim Young-sam administration.
  
  Popular support seems to be split with nearly half of the South Korean people feeling the NSL need to be revised -- but not abolished. A survey conducted on Tuesday by a local radio station showed that nearly half, or 48.3 percent, of 1,003 people polled want to retain the National Security Law with only minor revisions, while another 13.9 percent said they wanted see the law kept intact. Another survey of 926 people 20 years and older, also conducted on Tuesday by one of South Korea's major dailies, JoongAng Ilbo, revealed that 98 percent of the surveyed believe those who provide hideouts to North Korean spies in return for money must be punished.
  
  

• Truth and Reconciliation of History The "Truth and Reconciliation" legislation is aimed at investigating activities by high-profile South Koreans, dead or alive, who are suspected of collaborating with Japan during its 1910-45 colonial rule of the Korean Peninsula. It will also look into any human rights violations by South Korea's past authoritarian governments, including former President Park Chung-hee's 18-year military rule, which began with a 1961 coup. Park is the father of the GNP chairwoman, who is said to be among the top candidates for the next presidential election. However, the Uri Party has had egg all over its face since this started when the Uri leader was found to have a father who was a Japanese policeman -- and then Uri Party Rep. Kim Hee-sun, who claimed to be descendant of patriot fighters, was found to have a father who worked as a special operative for the Japanese puppet state of Manchukuo under the name Kaneyama Eiichi. In connection with this "correction" of history, President Roh asked the NIS to look into past wrongs that might have been committed dealing with its prosecution of the National Security Law. Roh stated on a radio show on 5 Nov, "History should be written right, learnt right and taught right," he said in a MBC radio program Women Era. "State agencies must apologize for their past wrongdoings and seek pardon from the people. They shouldn't just gloss over shameful acts."
  
  
• Media Reform The rival parties are also divided over the media-reform bills, which are aimed at limiting the market share of any daily newspaper to 30 percent and the combined market share of any three dailies to 60 percent. The GNP claims that the bill is aimed at taming the country's major conservative dailies -- the Chosun Ilbo, Dong-A Ilbo and JoongAng Ilbo -- which have harshly criticized President Roh's reform policies. Roh has had a running feud with the "Gangsta Press" from long before he was elected President -- but was one of the first acts to "ban" them from the Blue House. According to Yonhap News, the official Korean news service, South Korea's prime minister Lee Hae-chan in Berlin, Germany "lashed out at the nation's two leading conservative newspapers" on 18 Oct, accusing them of attempting to sway the government with biased reports. He said the two media organizations -- the Chosun Ilbo and the Dong-A Ilbo -- had peddled undue influence on state affairs in collusion with the past authoritarian governments and are attempting to repeat the practice. In response and true to form, the Chosun Ilbo stated that "Prime Minister Lee Hai-chan, speaking in a condition of drunkenness, criticized the Chosun Ilbo and Dong-A Ilbo in earthy language Monday...The prime minister, who was in an excitable state following his tough forced-march itinerary and several beer-whiskey boilermakers, could not suppress his flushed appearance." The GNP called for his resignation, but this was just politics.
  
  Opposition to the newspaper bill states the it stipulates detailed provisions to support pro-government newspapers like the Hankyoreh, Seoul Daily and Ohmynews, while placing stricter restrictions on independent media critical of the government like the Chosun Ilbo and Dong-A Ilbo. The bill's Article 16 applies higher standards than the existing Fair Trade Law in defining newspaper companies as monopolistic. Comments that provisions may even be unconstitutional.
  
  
• Private School Reform Another Uri Party-proposed bill to reform the management of private schools calls for filling one third of private school board seats with members recommended by students, parents and teachers. It also calls for increasing private school board members from the current seven to nine. The GNP says the regulations will discourage those hoping to set up private schools. On 18 Oct private school owners stated they would file a compensation lawsuit against the government and will close down their schools if the National Assembly passes the ruling Uri Party's revised Private School Law, which will allow students, teachers and parents to participate in the management of private schools. Nine private school organizations including the Korean Association of Private Middle and High Schools said in a joint statement Tuesday that because private school founders had invested an enormous amount of money in establishing private schools, their rights to control personnel, financial and audit affairs are legally guaranteed. They would file a compensation lawsuit if the government deprives them of those rights with the revised Private School Law, which the founders call a "socialist" law. A national crisis of an educational vacuum in elementary, middle and high school education may occur, as the government cannot take appropriate measures even if the founders close down private schools, reject new students and retain part of the schools' properties. On 5 Nov 2004, the majority of private schools stated that they would close down their operations if the Private School Law is passed -- setting the stage for a major crisis.
  
  There are many other educational issues on the table ranging from the Seoul colleges setting up their own standards for acceptance from highschools -- since it appears that some highschools are inflating the grades -- to the competency of the curriculum in elementary and middle schools to meet the challenges of the future. The educational curriculum now being forced on the elementary and middle schools are being questioned by teachers. The complaints over the National Education Information System (NEIS) remain unsettled and are impacting college entrance judging criteria. The conservative Korean Federation of Teachers' Association said they would not revert to the previous "client-server" (CS) system, saying 97 percent of 10,950 schools across the nation have already begun using the NEIS. They noted the "complete" return to the CS system could potentially cost the Education Ministry up to 2.2 trillion won, adding the government has already injected 52.1 billion won to the establishment of the new network system." The situation was placed on a hold after the Seoul courts arrested union leaders for staging a "workout" (sick leave). In addition, there are economic factors affecting education nationwide as hagwons (academies) are going out of business in Seoul and throughout the country due to the economic recession.

SITE NOTE: Roh had based his whole presidency on the fulfillment of this "vision." Our objection to this "vision" was that Roh went about it without asking the people in a referendum what they wanted. We stated this when it was first proposed and shook our head in disbelief in the underhanded way that the Roh government went about bypassing a national consensus on something of such importance. He based his actions on the "referendum" of the ballot box whereby the mindless masses would accept his vision. There are many who do not share his view -- and now that the costs are being revealed, there are more and more voicing their discontent throughout the country. Roh, however, has backed himself into a corner on this issue. The decision was a serious blow to the Roh government. Roh has said he will risk the fate of his administration to build a new capital. He regarded opposition to the project as a campaign to oust him.