Yonhap News Summary

The following is the second summary of major stories moved by Yonhap News Agency
on Tuesday.

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(News Focus) Sanctions over N. Korean missile test elusive: analysts
SEOUL -- The international community will face challenges in imposing sanctions
on North Korea even if the communist state pushes ahead with its plan to launch
what it claims to be a space satellite, analysts said.
North Korea said Tuesday through its official media it is pushing to launch a
satellite that neighbors believe is likely to be a ballistic missile capable of
reaching Alaska and Hawaii.
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(LEAD) N. Korean satellite launch still threat to S. Korea: defense chief
SEOUL -- Whether North Korea launches a satellite or a missile, South Korea will
consider it a military threat because the technology is essentially the same,
Seoul's top defense official said Tuesday.
"Whether it is a missile or a satellite, it is similar technology. In either
case, we believe it is a threatening act towards us and we are preparing to deal
with it accordingly," Defense Minister Lee Sang-hee said at a National Assembly
hearing.
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N. Korean provocation likely to be 'beyond imagination': naval commander
SEOUL -- South Korea's top naval commander was quoted Tuesday as warning that
North Korea could provoke in a fashion "beyond our imagination" as he inspected
South Korea's east coast despite rising concerns of an armed clash on the western
side.
The inspection by Navy Chief of Staff Jung Ok-keun came just days after the South
Korean chairman of general staff said at a parliamentary hearing that the North
could deploy surprise tactics by provoking at an unexpected site along the border
with South Korea.
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(2nd LD) Seoul, Baghdad agree on $3.55 billion deal to rebuild Iraq
SEOUL -- South Korea on Tuesday signed a US$3.55-billion deal with Iraq to help
rebuild the war-torn nation and set up various forms of social infrastructure in
exchange for nearly 2 billion barrels of Iraqi oil, Seoul's presidential office
Cheong Wa Dae said.
The deal was signed by South Korean President Lee Myung-bak and visiting Iraqi
President Jalal Talabani.
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(LEAD) Seoul shares tumble 3.24 pct on growing uncertainty
SEOUL -- South Korean stocks tumbled 3.24 percent on Tuesday as investors were
spooked by overnight Wall Street setbacks and spreading jitters over a U.S. bank
rescue plan, analysts said. The won plunged to an 11-year low against the
greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 35.67 points to
1,063.88. Volume was heavy at 569 million shares worth 3.73 trillion won (US$2.49
billion), with losers outpacing gainers 651 to 182.
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Won hits 11-year low against U.S. dollar
SEOUL -- The South Korean currency plunged to a near 11-year low against the U.S.
dollar Tuesday as renewed concerns over a credit squeeze prompted foreigners to
dump local shares, dealers said.
The local currency closed at 1,516.3 won to the greenback, down 27.3 won, or 1.8
percent, from the previous session's close and the lowest level since March 13,
1998.
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(Yonhap Feature) Global crisis clouds S. Korea's capital market reform
SEOUL -- In early February, South Korea conducted a sweeping deregulation of the
nation's underdeveloped capital market in an ambitious plan to hone its
international competitiveness and spur innovation.
After years of preparation and political wrangling, the Capital Market
Consolidation Act went into effect on Feb. 4, giving greater leeway to nonbank
financial firms by tearing down barriers separating stock brokerage, futures
trading and asset management.
(END)