Yonhap News Summary

The following is the first summary of major stories moved by Yonhap News Agency
on Friday.

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(5th LD) N. Korea scraps agreement on sea border with S. Korea
SEOUL -- North Korea said on Friday that it is scrapping all political and
military agreements with South Korea and declared a western sea border void,
sharply raising tensions and the possibility of a naval clash.
The move revived tensions of the Cold War era, trampling a landmark accord that
the Koreas reached in 1991 to prevent military clashes and boost reconciliatory
efforts. Seoul expressed "deep regret" and urged Pyongyang to agree to dialogue.
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South Korea expresses regret over N. Korean border threat, offers dialogue
SEOUL -- South Korea expressed regret over North Korea's threat on Friday to
scrap reconciliatory accords and nullify a western sea border, urging Pyongyang
to agree to dialogue.
"Our government expresses deep regret," Kim Ho-nyoun, spokesman for the
Unification Ministry handling North Korea affairs, said in a press conference.
"We urge North Korea to accept our call for dialgue as soon as possible."
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(LEAD) N. Korean threat only shows frustration: official
SEOUL -- North Korea's declaration to scrap agreements with South Korea reflects
Pyongyang's frustration over the failure of its brinksmanship diplomacy, an
official at Seoul's presidential office said Friday.
Earlier Friday, the North's Committee for the Peaceful Reunification of Korea
said Pyongyang will no longer honor past political and military agreements
between the two Koreas and will disregard the Northern Limit Line (NLL) in the
Yellow Sea, which has served as the de facto maritime border.
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S. Korea vows strong counteraction against N. Korean maritime intrusions
SEOUL -- South Korea pledged on Friday "firm counteraction" against any attempt
by North Korea to violate their sea border, hours after Pyongyang raised tensions
by declaring it is scrapping all political and military accords with Seoul.
"We will uphold the maritime border just as we maintain the military demarcation
line on land," Won Tae-jae, spokesperson for the Ministry of National Defense,
told reporters. He called on North Korea to abide by a 1992 agreement that
recognizes the Yellow Sea border as a de-facto demarcation line.
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(2nd LD) S. Korea logs current account deficit of US$6.41 bln in 2008
SEOUL -- South Korea posted its first annual current account shortfall in 11
years in 2008 as soaring oil prices raised import bills, the central bank said
Friday.
The current account deficit reached US$6.41 billion last year, a turnaround from
a revised surplus of $5.88 billion a year earlier, the Bank of Korea (BOK) said
in a report. It was the first current account shortfall since 1997 when the
deficit reached $8.3 billion.
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S. Korea expected to post large trade deficit in Jan.
SEOUL -- South Korea is expected to post a sizable trade deficit in January due
to a sharp drop in outbound shipments and increasing energy imports, government
and industry sources said Friday.
The nation's trade deficit may amount to US$3.8-4.0 billion this month, roughly
equal to the shortfall reported in the first month of 2008, according to the
sources at the Ministry of Knowledge Economy and the Korea International Trade
Association (KITA).
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(LEAD) BOK chief warns of negative growth for 2009
SEOUL -- The South Korean economy will likely shrink in 2009 unless economic
conditions improve significantly in the first half, the top central banker warned
Friday, pledging to focus the nation's monetary policy on an economic recovery.
Asia's fourth-largest economy contracted 5.6 percent last quarter from three
months earlier and is widely expected to log negative growth this quarter,
lapsing into a recession, or two straight quarters of quarterly decline.
(END)