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Sept. 28 (Bloomberg) — Donald Gregg, former U.S. ambassador to South Korea, talks about the outlook for North Korea’s leadership and diplomacy. North Korean leader Kim Jong-Il’s youngest son, Kim Jong-Un, has been appointed a general, the official Korean Central News Agency reported yesterday, a day before the Workers Party of Korea is to meet to choose “its supreme leadership body.” Gregg also discusses the sinking of a South Korean warship in March which killed 46 sailors. He speaks with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)

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Video: Former Ambassador Gregg Discusses N. Korea’s Leadership: Video

By Jungmin Hong June 12 (Bloomberg) — North Korea warned of an “all-out military strike” to destroy South Korean loudspeakers and other propaganda tools along their fortified border, according to the North’s state-run Korean Central News Agency. South Korea’s preparation for psychological warfare, is a “direct declaration of a war” against the North, the general staff of the communist state’s military said today in a statement on KCNA. The North’s military retaliation may turn Seoul into “a sea of flame,” the statement said. The South has already installed loudspeakers in 11 places along the border and is attempting to set up electronic displays, according to the statement. South Korea hasn’t detected any abnormal activities near the border area with the North, Yonhap News said following the KCNA report today, citing South Korea’s Joint Chiefs of Staff . Tensions have risen on the Korean peninsula since an international panel concluded on May 20 that the North was behind a torpedo attack that sank the Cheonan warship, killing 46 of the South’s sailors. South Korea’s president Lee Myung Bak has taken the case to the United Nations Security Council, backed by the U.S. and Japan, to seek a resolution condemning North Korea. The North says the allegations are fabricated and has threatened to retaliate over any punitive action taken against it. South Korea will resume anti-North broadcasts across the border after the United Nations Security Council makes a determination about the sinking, Yonhap News reported yesterday, citing South Korea’s defense minister. To contact the reporter on this story: Jungmin Hong in Seoul at jhong47@bloomberg.net

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North Korea Threatens to Strike South&rsquos Loudspeakers

North Korea Threatens to Strike South&rsquos Loudspeakers

June 12, 2010

By Jungmin Hong June 12 (Bloomberg) — North Korea warned of an “all-out military strike” to destroy South Korean loudspeakers and other propaganda tools along their fortified border, according to the North’s state-run Korean Central News Agency. South Korea’s preparation for psychological warfare, is a “direct declaration of a war” against the North, the general staff of the communist state’s military said today in a statement on KCNA. The North’s military retaliation may turn Seoul into “a sea of flame,” the statement said. The South has already installed loudspeakers in 11 places along the border and is attempting to set up electronic displays, according to the statement. South Korea hasn’t detected any abnormal activities near the border area with the North, Yonhap News said following the KCNA report today, citing South Korea’s Joint Chiefs of Staff . Tensions have risen on the Korean peninsula since an international panel concluded on May 20 that the North was behind a torpedo attack that sank the Cheonan warship, killing 46 of the South’s sailors. South Korea’s president Lee Myung Bak has taken the case to the United Nations Security Council, backed by the U.S. and Japan, to seek a resolution condemning North Korea. The North says the allegations are fabricated and has threatened to retaliate over any punitive action taken against it. South Korea will resume anti-North broadcasts across the border after the United Nations Security Council makes a determination about the sinking, Yonhap News reported yesterday, citing South Korea’s defense minister. To contact the reporter on this story: Jungmin Hong in Seoul at jhong47@bloomberg.net

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North Korea Says All Relations With South Will Be `Severed,’ KCNA Reports

May 25, 2010

By Clementine Fletcher May 25 (Bloomberg) — The North Korea-based Committee for the Peaceful Reunification of Korea issued a statement saying all relations with South Korea “will be severed,” the state- run Korean Central News Agency said. “All communication links between the north and the south will be cut off,” KCNA said today. To contact the reporter on this story: Clementine Fletcher in London at cfletcher5@bloomberg.net

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South Korean Naval Divers Reach Sunken Patrol Boat; No Sign of 46 Missing

March 29, 2010

By Sangim Han and Bomi Lim March 29 (Bloomberg) — South Korean navy divers today reached a patrol boat that sank off the west coast three days ago near the nation’s disputed border with North Korea, with no sign of the 46 missing crew members When navy divers knocked on the ship’s stern with hammers, they didn’t hear any response, defense ministry spokesman Won Tae Jae said in a briefing. The 1,200-ton Cheonan sank within hours after an explosion on March 26 split the vessel in two. Rescue operations will continue until 8 p.m., Commodore Lee Ki Sik of the Joint Chiefs of Staff told reporters, as missing crew members may be trapped inside the sunken ship. Oxygen in the ship’s waterproof cabins would have enabled those trapped to survive for a maximum of 69 hours, Lee said. North Korea today warned the U.S. and South Korea not to “disturb the security and order” in the demilitarized zone. The statement by an unidentified Army spokesman, carried by the Korean Central News Agency, made no reference to the explosion. Korea’s benchmark Kospi stock index fell 0.3 percent to 1,691.99 in the first day of trading since the ship sank. The won gained 0.3 percent to 1,135.50 against the dollar. A U.S. Navy ship joined rescue efforts that have been hampered by choppy waters. U.S. and South Korean officials have said there were no indications of North Korea’s involvement. U.S. stocks pared gains on March 26 on concern North Korean military action might have caused the explosion. ‘No Special Movements’ The U.S. military said it has detected “no special movements” by North Korea, echoing comments by Lee’s office. “We continue to monitor the situation and remain prepared for any contingency,” General Walter Sharp , the senior U.S. commander in South Korea, said yesterday in a statement on the military’s Web site. Defense Minister Kim Tae Young played down the possibility of a South Korean mine causing the explosion, and said today one of thousands of North Korean sea mines placed during the 1950-53 war may have drifted into South Korean waters, according to South Korea’s Yonhap news agency. The Cheonan split in two and started sinking shortly after an explosion at the stern around 9 p.m., according to the ship’s captain, Choi Won Il, who was among 58 survivors. The parted stern sank immediately, and the other half floated four miles away from the explosion site before it was submerged around 1 a.m. on March 27, according to the Joint Chiefs of Staff in Seoul. Disputed Boundary The western sea border is at the center of a dispute between the two Koreas that caused skirmishes in 1999 and 2002. North Korea doesn’t recognize the maritime border demarcated by the United Nations and argues it needs to be drawn further south. In January, North Korea fired artillery in the area during military exercises, prompting warning shots by South Korea. Kim Jong Il ’s regime is under pressure to return to international talks on its nuclear weapons ambitions. Food shortages have worsened after the UN imposed tougher sanctions following North Korea’s second nuclear test in May 2009. To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

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North Korea to Release American Missionary in Sign of Improved Relations

February 4, 2010

By Bomi Lim Feb. 5 (Bloomberg) — North Korea said it will release an American missionary who was detained in December for illegal entry, an indication the communist country is seeking to maintain improved relations with the U.S. North Korea decided to release Robert Park after his “sincere repentance of his wrongdoings,” the state-run Korean Central News Agency said today. Park was detained on Dec. 24 for illegally crossing into the country from China, KCNA said on Dec. 29. No details were given on his release. Park’s release came after U.S. President Barack Obama two days ago decided to keep North Korea off the government’s list of states that sponsor terrorism. North Korean leader Kim Jong Il left open the possibility of a possible return to six-nation nuclear disarmament talks after U.S. envoy Stephen Bosworth traveled to Pyongyang in December. The United Nations has described Park as an American missionary who entered North Korea to protest the country’s prison system. The country is holding another American, who KCNA has said was detained on Jan. 25 for illegal entry. The second detainee’s identity remains unknown. KCNA issued a statement from Park saying: “I seriously repented of the wrong I committed.” Thawing Relations Former U.S. President Bill Clinton traveled to Pyongyang in August to secure the release of two American journalists who were arrested in March 2009 near the border with China. Clinton’s trip, which included a meeting with Kim, helped thaw relations between North Korea and the U.S., leading to Bosworth’s visit. Kim’s regime remains under UN Security Council sanctions for carrying out tests of missiles and nuclear devices in 2009. North Korea has said it won’t return to the six-party talks aimed at getting the country to abandon its nuclear program until the sanctions are lifted, something the Obama administration has ruled out. North Korea doesn’t meet the criteria for being included on the U.S. government’s list of states sponsoring terrorism, Obama wrote in a letter to congressional leaders on Feb. 3. Inclusion automatically imposes sanctions. North Korea, which had been on the list since 1988, was removed in 2008 after it agreed to inspection of sites suspected of being part of a nuclear program. To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net

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Kim Jong Il Doubles North Korea Factory Visits to Prop Up Failing Economy

February 1, 2010

By Bomi Lim Feb. 2 (Bloomberg) — North Korean leader Kim Jong Il has doubled the number of trips he makes to factories and power stations, signaling his regime’s growing efforts to prop up a failing economy hit by United Nations sanctions. Half of the 20 visits Kim made in January were to economic projects, more than double the four economy-related trips he made a year earlier, according to South Korea’s Unification Ministry . Kim made a total of 13 outings in January 2009. “It clearly shows how Kim Jong Il wants to show his people his eagerness to overcome economic difficulties,” said Kim Yong Hyun, professor of North Korean studies at Dongguk University in Seoul. “He wants to tell them the leader himself will be at the forefront of improving their livelihoods, which have obviously got worse.” North Korea, which releases no economic data, is hobbled by UN Security Council sanctions on cross-border financial transactions, curbs that were toughened after Kim’s government carried out tests of missiles and nuclear devices in 2009. South Korea’s central bank estimates the North’s 2008 gross domestic product at 21.5 trillion won ($18.4 billion). Kim, 68, braved temperatures of minus 30 degrees Celsius (minus 22 degrees Fahrenheit) to tour a power station under construction in Huichon, North Korea’s official Korean Central News Agency said on Jan. 3 in reporting his first trip of the year. He visited a flour-processing factory in Pyongyang and ordered that machinery be modernized to enable increased production of bread, biscuits and noodles, KCNA said Jan. 23. 1990’s Famine Kim makes what his regime calls “field guidance” trips to military units, factories, farms and other sites to demonstrate his leadership. The Unification Ministry in Seoul tallies Kim’s public appearances by monitoring North Korean media reports. North Korea has been reliant on outside handouts to feed its 24 million people since the mid-1990s when famine caused by floods, drought and economic mismanagement is estimated to have killed about 2 million people. The North Korean government in December revalued its non- convertible currency for the first time in 17 years, targeting a black market that has challenged the ruling party’s control. Laws have also been changed to favor foreign investors, officials told a U.S. business delegation, when the officials also asked for economic contributions and investment. To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net

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Kim Tells Wen North Korea Is Willing to Return to Six-Party Nuclear Talks

October 5, 2009

By Seonjin Cha Oct. 6 (Bloomberg) — North Korean leader Kim Jong Il told Chinese Premier Wen Jiabao his regime is prepared to return to six-party nuclear disarmament talks, the official Korean Central News Agency reported. Attending the talks depends on progress in North Korea’s dialogue with the U.S., KCNA cited Kim as telling Wen yesterday during a meeting in the North Korean capital, Pyongyang. The “hostile relationship” between North Korea and the U.S. should be “converted into peaceful ties through the bilateral talks without fail,” KCNA said. “Our efforts to attain the goal of denuclearizing the peninsula remain unchanged.” North Korea pulled out of the talks, which also involve South Korea, the U.S., Japan and Russia, in April after the United Nations condemned the country for launching a missile over Japan. The U.S. said last month it is willing to engage North Korea directly to resume the nuclear talks. China hosts the six-party forum and Wen is in North Korea on a three-day visit amid heightened diplomatic efforts to convince Kim’s regime to return to the process. Kim’s government agreed in February 2007 to scrap its nuclear program in return for energy aid and normalized diplomatic ties with the U.S. and Japan. The disarmament talks stalled after North Korea refused to let inspectors remove samples from its Yongbyon nuclear reactor. The regime detonated a nuclear device in May, after its first such test in October 2006. The UN Security Council voted unanimously in June to adopt a U.S.-backed resolution punishing North Korea for its nuclear test. The measure seeks to curb loans and money transfers to North Korea and step up inspection of cargoes containing material that might contribute to the development of nuclear weapons or ballistic missiles. In a letter to the Security Council last month, the government in Pyongyang said it is “weaponizing” plutonium and has almost succeeded in highly enriching uranium, the second means for creating a nuclear device. To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

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