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    Korea
     Nov 2, 2007
US makes partial peace with South Korea
By Donald Kirk

SEOUL - On the day that North Korea took the first step toward disabling its nuclear reactor, the upcoming return of an accused financier trumped the nuclear issue as the headline-grabbing issue in South Korea's hard-fought presidential campaign.

The US State Department described the decision to extradite Kim Gyeong-jun as a routine matter, but South Korean conservatives saw it as a sign of US anxiety to stay on the good side of the



government in Seoul at a sensitive time in US-Korean relations.

Aides and advisers to the conservative presidential candidate, Lee Myung-bak, went into overdrive in anticipation of the trouble Kim may cause when he arrives in South Korea in about two weeks to face trial on charges of embezzling more than US$40 million from companies in which Lee was once a partner.

The fear is that Kim under interrogation by prosecutors will try to draw Lee into the net, implicating him in an asset management firm known by the initials BBK in which he says Lee was a partner and Lee claims only to have been an investor. Kim withdrew his appeal against extradition on October 18, giving the US State Department the 60 days required by law in which to send him back before the election on December 19.

No sooner had word come from Washington that the State Department had gone along with the extradition, as ordered by a California court, than Lee's camp convened an emergency meeting to decide how to fight the case from both public relations and legal viewpoints.

Ideally, said conservatives, the scandal will blow over, and Lee will remain far ahead of his closest rival, Chung Dong-young, a former unification minister and candidate of the United New Democratic Party, an amalgam of factions that shares the common goal of perpetuating the government's policy of reconciliation with North Korea.

Ideally for liberals and leftists, prosecutors will summon Lee for intensive questioning, forcing him to detour off the campaign trail while his image appears on front pages and on TV news walking in and out of interrogation sessions. The worst-case scenario is that prosecutors will ask a court to "detain" Lee - that is, hold him for more interrogation and possible indictment. Such an extreme measure, commonplace in investigations of massive corruption, is seen as highly unlikely, however, considering the crisis it would precipitate. "They will not do that," predicted one official, talking anonymously. "The case will not be that serious."

Lee Bang-ho, secretary general of the opposition Grand National Party (GNP), was quoted by Yonhap, the government-owned news agency, as saying that top GNP aides had "held an urgent discussion to come up with strategies" immediately after getting word that Kim would be returning.

That session was undoubtedly of far greater import to Lee than a meeting in Beijing between US nuclear negotiator Christopher Hill and his long-time North Korean counterpart Kim Kye-gwan before a US team flew to Pyongyang for the very first step in disabling the North Korean nuclear complex.

"BBK", as the case is known, and the nuclear issue are intertwined, however, in the fabric of a US-Korean relationship that has rarely been so delicately woven - or in such danger of shredding.

The US, steadfastly clinging to the US-Korean alliance, is parrying pressure to drop North Korea from the State Department's list of nations sponsoring terrorism and then to agree on a "peace treaty" with North Korea formally ending the Korean War. The US administration, seemingly hard line toward North Korea in the first few years after the inauguration of President George W Bush to his first term in 2000, has grown increasingly enthusiastic about six-party talks that resulted in the nuclear agreement of February 13 under which North Korea agreed to abandon its nuclear program.

That shift in policy represents a compromise as the South Korean government embraces reconciliation as seen in the North-South summit in Pyongyang in early October in which President Roh Moo-hyun and North Korea's leader Kim Jong-il agreed on wide-ranging economic measures a day after diplomats at the six-party talks signed off on a timeframe for North Korea to disable its nuclear facilities and provide details on its entire nuclear program by the end of this year.

Since then, insiders on Roh's staff have been insistent about a peace treaty before North Korea has gone through the process while the US holds out the prospect of a treaty as a reward for North Korea making good on its promises. In that context, the State Department decided to extradite Kim Gyeong-jun before the whole issue of what to do about him jeopardized shaky rapport between Washington and Seoul on the nuclear issue.

Caught in the middle, Foreign Minister Song Min-soon danced an intricate minuet as he responded to questions from foreign correspondents on Thursday about when or whether South Korea was asking the US to go along with a peace treaty as advocated by Roh's aides.

That issue, he said, was "directly related to the North Korean nuclear issue", but discussion would take place "at an appropriate time" - and "in a separate forum" from the six-party talks.

He was clearly hopeful, though, about a peace arrangement that would substantially reduce deep-seated tensions on the Korean Peninsula. "Normalization of relations between the DPRK [Democratic People's Republic of Korea] and the US and improvement of relations between the two Koreas will mean the end of the armistice regime," said Song, referring to the Korean War truce signed in July 1953. "That is the beginning of the peace regime."

Song took pains to reword Bush's remark, made during a meeting in Hanoi last year, that North Korea would have to dismantle its nuclear program before the US could go along with a "declaration to end the Korean war". "We now do not use the term 'declaration of the end of the Korean War'," said Song, preferring instead to talk about "conclusion of the peace agreement" or "signing of the peace treaty".

Song was equally circumspect about the desire of members of the Roh government to bring together the leaders of the principle nations involved in the Korean War, China, the US and both Koreas, as signatories of a treaty. "If the denuclearization process sees progress," he said, "the heads of state of the appropriate parties could come together and agree on a declaration." But whether such a happy denouement was possible, he said, "will depend on the perspectives of the relative countries". In any case, he went on, "The parties will continue to discuss this issue and how well it's going."

Song flies to the US next week for speeches at Harvard University and in Washington before seeing Secretary of State Condoleezza Rice, with whom he's sure to talk about steps toward achieving a "peace regime", including a treaty.

One topic that he said will not come up when he sees Rice is removal of North Korea from the State Department's list of terror-sponsoring nations. "There is agreement the condition [of removal of the label] is dismantlement of the nuclear program."

Song was careful, however, not to appear overly optimistic. "The DPRK has disclosed its intention to denuclearize," he said, "but I did not say the DPRK had a firm will. We will have a firm assessment of the DPRK's position only if the DPRK proves its will," and "we would like to take it step by step".

Hill, in Beijing, was his usual ebullient self. He declared the US team going to Pyongyang was "very highly motivated and ready to go on with the first stages of the actual disablement" and "we are very satisfied that we have an overall plan that will be effective".

Those words offered cold comfort around Lee Myung-bak's campaign headquarters, where the assurance that the BBK case had been "treated like any other extradition matter under our extradition treaty" was viewed with skepticism. "Rice could have waited on the extradition order," said a Lee supporter. "She didn't want to have to talk about it when she sees Song next week."

Journalist Donald Kirk has been covering Korea - and the confrontation of forces in Northeast Asia - for more than 30 years.
(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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