Korean Peninsula Today, 08 June 2009

U.S. Seeking Own Financial Sanctions on N. Korea Separately From U.N

Yonhap

06/06/2009

WASHINGTON -- The United States said Friday that it will pursue its own financial sanctions against North Korea aside from those discussed at the U.N. for the North's recent nuclear test.

"The steps we've taken in the past in the banking sector, you know, certainly did get North Korea's attention previously. And if we find ways that we can do that, we will do so," said Philip Crowley, assistant secretary of state for public affairs, in a daily news briefing.

Crowley was discussing the financial sanctions Washington slapped on a Macau bank in 2005 to freeze US$25 million worth of North Korean assets to effectively cut off North Korea's access to the international financial system. Banco Delta Asia had been accused of helping North Korea launder money from circulating sophisticated counterfeit US$100 bills called "supernotes."

The remarks come amid a flurry of diplomacy under way at the U.N. Security Council and Asian capitals to sanction North Korea financially for its second nuclear test in nearly three years to pressure the reclusive communist state to return to six-party talks on ending its nuclear ambitions.

U.S. Deputy Secretary of State James Steinberg is coming home from a weeklong trip to Seoul, Beijing and Tokyo to seek support for general arms and financial embargoes aimed at shutting down North Korea's main source of hard currency income and access to foreign financial institutions.

U.S. Treasury Undersecretary Stuart Levey, who played a central role in the BDA sanctions, is accompanying Steinberg in light of recent findings that North Korea circulated about $US1 million worth of supernotes at a South Korean port late last year.

Crowley, however, made it clear that the focus will be on sanctioning North Korea multilaterally through the Security Council.

"We're looking at what steps that we can take, principally in collaboration with others in the six-party process," he said. "We will continue to use, you know, whatever levers that we see available and we think will be effective, but our ultimate objective is to get back to negotiations and to start to once again make progress on the commitments that North Korea has made previously."

North Korea has threatened to boycott the six-party talks, demanding the security council apologize its rebuke for the April 5 rocket launch, which Pyongyang said was to orbit a satellite.

In defiance of the international condemnation, North Korea detonated its second nuclear device early last week, fired several missiles and threatened to nullify the armistice that ended the 1950-53 Korean War unless the U.S. ceases what it calls hostile behavior.

The provocations are widely seen as an attempt by ailing North Korean leader Kim Jong Il [Kim Cho'ng-il] to help his third and youngest son, Jong-un, to consolidate power in an unprecedented third generation dynastic power transfer.

In fragile health after an apparent stroke last summer, Kim Jong Il [Kim Cho'ng-il] officially anointed Jong-un as his successor soon after the latest nuclear test.

Talk is rife on Kim Jong Il [Kim Cho'ng-il]'s true intentions, with some saying Pyongyang will return to the negotiating table with the U.S. either bilaterally or multilaterally, while others are pessimistic about Pyongyang abandoning its nuclear arsenal.

China, North Korea's staunchest communist ally, is key to effective implementation of any sanctions on North Korea, heavily dependent on its communist neighbor in energy, food and other necessities.

Crowley dismissed concerns that Beijing is lukewarm to any strong sanctions on North Korea for fear of undermining its influence.

"There has been strong unanimity within the United Nations that there will be a resolution," he said. "We're working assiduously on what form that resolution will take place. Progress is being made in negotiations that we have ongoing in New York."

China and Russia, veto powers on the council, thwarted the effort by the U.S. and its allies in April to adopt a legally binding resolution on North Korea's rocket launch, resulting in a largely symbolic council presidential statement.

They demanded any sanctions be conducive to coaxing the reclusive North into getting back to the multilateral nuclear disarmament talks.

Ambassadors of the five permanent members of the council, plus South Korea and Japan, are expected to meet at the U.N. headquarters in New York later in the day to discuss drafting a resolution.

South Korean Foreign Minister Yu Myung-hwan [Yu Myo'ng-hwan] said in New York Thursday that he expects an agreement by the weekend.

"China and Russia oppose bolstering interdiction of vessels, citing possible violations of international law," Yu said. "It might be a bit easy for us to agree to financial sanctions as it is about a technical issue of what entities to sanction."

Yu will meet with U.S. Secretary of State Hillary Clinton later in the day in Washington to discuss how to deal with North Korea's nuclear and ballistic missile ambitions and also preparations for a summit between South Korean President Lee Myung-bak [Yi Myo'ng-pak] and U.S. President Barack Obama on June 16.

----------------------------------------------------------------------------------------------------------

Clinton says U.S. mulls putting North Korea back on terror list

Reuters

06/07/2009

By Sue Pleming

WASHINGTON -- The United States is looking into putting North Korea back on a list of state sponsors of terrorism in response to its nuclear test last month, U.S. Secretary of State Hillary Clinton said in an interview on Sunday.

"We're going to look at it. There's a process for it. Obviously we would want to see recent evidence of their support for international terrorism," she said on ABC's "This Week with George Stephanopoulos."

Asked whether she had evidence of the North's support for international terrorism, Clinton said: "We're just beginning to look at it. I don't have an answer for you right now."

The United States removed North Korea from its terrorism blacklist in October in a bid to revive faltering six-nation denuclearization talks that have completely broken down.

The impoverished Communist-ruled Asian nation was taken off the list after agreeing to a series of verification measures at its nuclear facilities. It has been condemned internationally since its defiant May 25 nuclear test.

"Obviously they were taken off of the list for a purpose, and that purpose is being thwarted by their actions," Clinton said.

Coming off the list meant North Korea could better tap into international finance and see some trade sanctions lifted -- benefits that would be reversed, although other sanctions have remained as a result of its first nuclear test in 2006.

SUPPORT FROM RUSSIA AND CHINA

Clinton said she expected a strong sanctions resolution against North Korea to emerge from the U.N. Security Council, with the backing of China and Russia, which previously balked at such measures and hold veto powers on the council.

"I think what is going somewhere is additional sanctions in the United Nations -- arms embargo, other measures taken against North Korea with the full support of China and Russia," she said in reference to the ongoing U.N. deliberations.

Clinton said the United States would work hard to cut off the flow of money to North Korea.

"If we do not take significant and effective action against the North Koreans now, we'll spark an arms race in Northeast Asia. I don't think anybody wants to see that," she said.

"And so part of what we're doing is again, sharing with other countries our calculus of the risks and the dangers that would lie ahead if we don't take very strong action."

Renewed tensions over North Korea's nuclear program coincide with the trial in recent days of two U.S. female journalists held in Pyongyang.

Analysts say the pair, who were working for the Current TV network co-founded by former U.S. Vice President Al Gore, have become bargaining chips in negotiations with the United States.

Clinton appealed to the North to free the two women, saying their case was a humanitarian issue and must be viewed separately from the nuclear dossier.

"We think that the charges against these young women are absolutely without merit or foundation. We hope the trial ends quickly, it's resolved and they're sent home."

Clinton also said she was following very closely reports that North Korean leader Kim Jong-il has signaled the appointment of his youngest son as heir to the country's ruling family dynasty.

----------------------------------------------------------------------------------------------------------

Koreas to meet on Gaeseong next week

Korea Herald

06/06/2009

By Kim So-hyun

The two Koreas will meet next Thursday at the North Korean border city of Gaeseong to discuss issues regarding the operation of the joint industrial park there, the Unification Ministry said yesterday.

The meeting comes amid heightening tension caused by the North's nuclear test, missile firings and warnings that it is ready to strike the South.

"North Korea's Central Special Zone Development Guidance General Bureau has proposed to hold working-level talks on the joint industrial park in Gaeseong with South Korean government officials on June 11 at 10 a.m.," said ministry spokesperson Chun Hae-sung in a press briefing.

"(The North's proposal) was in response to our suggestion on May 19. We sent a reply today agreeing to the proposal."

The agreement for talks, a follow-up to the April 21 bilateral meeting in Gaeseong, came after more than six weeks of tug-of-war as the two sides refused to budge on the agenda.

Following North Korea's demand for negotiations on wage hikes and land lease contract revisions in Gaeseong, South Korea had suggested the follow-up talks three times, the last one made on May 19.

At the first government-level meeting in more than a year on April 21, the North had refused to discuss Seoul's major concern - the fate of a South Korean worker detained in Gaeseong since March 30.

"Our topmost priority has been the safety of our citizens, and we believe North Korea acknowledges this," Chun said yesterday, adding that the agenda had not been specified.

The Hyundai Asan Corp. employee, named Yoo Sung-jin, was arrested on March 30 on charges of criticizing the North's political system and encouraging a female North Korean to defect to the South, and has been denied access to South Korean officials since.

On May 15, Pyongyang declared invalid all inter-Korean contracts regarding the joint venture in Gaeseong and vowed to unilaterally raise wages, land usage fees and taxes, while accusing Seoul of being "confrontational."

South Korean firms that cannot accept the new terms should leave, it said.

Seoul has reiterated several times that it was not considering closing the Gaeseong industrial complex despite the North's unilateral decision to scrap wage and land lease contracts there.

At the 20-minute bilateral meeting on April 21, Pyongyang complained that wages South Korean firms pay North Korean employees in the Gaeseong park are too low and should be increased, and demanded the two sides meet again.

Korean Peninsula Today, 05 June 2009

• The US Ambassador to South Korea, Kathleen Stephens, said in a forum with South Korean journalists that the United States has put "all options" on the table to counter North Korea's continued provocations, adding Washington will pursue its own sanctions after the UN takes action against the communist nation for its latest nuclear test.

• A senior American diplomat was quoted as saying that the US won't repeat the mistake of rewarding North Korea's bad behavior Thursday, as Washington reportedly pushed for strong financial sanctions against North Korea for its latest nuclear test.

• A North Korean patrol boat intruded over the NLL and crossed into the South Korean side at 2:47 PM, 04 June. The patrol boat retreated back to the North Korean side after a standoff that lasted nearly an hour. The intrusion occurred about 12 km off the South Korean island of Yeonpyeong, near which naval battles erupted between the two Korean naval forces in 1999 and 2002.

• As of the time of this posting, there has not been any North Korean media follow-up reporting on the trial of the two US journalists. The last North Korean media reporting on this subject was the 03 June Korean Central News Agency's one line report announcing the trial will begin at 3:00 PM, 04 June 2009 (local time).

Korean Peninsula Today, 04 June 2009

• Visiting Korea, James Steinberg said yesterday tat the US and South Korea are not ruling out the possibility of imposing financial sanctions on North Korea as punishment for its latest nuclear test.  Deputy Secretary Steinberg also said that the US and its allies are working together to deal with any contingencies in North Korea including the post-Kim Jong-il era.

• North Korea is set to try two detained US journalists on charges of illegal entry and hostile acts starting today, amid speculation Pyongyang may try to bargain their release for political concessions from Washington.
  

• A South Korean Air Force official said South Korea will not refrain from launching a fleet of advanced fighter jets to retaliate against North Korea if the communist neighbor provokes an armed conflict along their western sea border.

Korean Peninsula Today, 03 June 2009

• US Ambassador to the UN says progress is made on the new UNSC resolution on North Korea

• North Korea is preparing to test-fire missiles on both coasts

• US calls for North Korea to free two American journalists detained since March

• South Korea's National Intelligence Service says it has reportedly confirmed Kim Jong-il's third son Kim Jong-un has been officially named the successor of North Korea

• A North Korean general tied to counterfeit $100 "supernote" bills
  

• North Korea is evading Seoul's questions about a detained South Korean worker amid speculation he may have been moved to Pyongyang to stand trial
  

Korean Peninsula Today, 02 June 2009

• A team of high-ranking US officials may ask China and others to cooperate on imposing financial curbs on North Korea

• A long-range missile was seen near a launch pad in Northwest North Korea

• North Korea has intensified landing exercises using amphibious vessels along its west coast amid growing fears it may be plotting an attack on a South Korean island

Korean Peninsula Today, 01 June 2009

• North Korea may carry out another long-rage ballistic missile test sometime after 10 Jun

• Chinese fishing vessels are leaving the NLL

• North Korea fired another short-range missile on Friday, 29 May 2009, and threatened fresh steps if world powers impose sanctions for its nuclear test.

In and Around North Korea: 23 - 29 May 2009

North Korea conducts second nuclear test

At 9:54 AM (KST), 25 May, North Korea conducted its second nuclear test near the northeastern town of Kilchu (near the site of the North’s 2006 nuclear test). Along with its nuclear test, North Korea also test-fired two short-range missiles on 25 May, and three short-range missiles on 26 May.

Reactions from South Korea, Japan, China, Russia, and the United Nations

The ROK Reactions. Following the North Korean nuclear test, the ROK government immediately convened an emergency meeting of the NSC meeting and placed its military on high alert. The ROK President Lee Myung-bak said he was disappointed with the North and ordered complete readiness to counter any additional provocations from the communist nation. At the end of the emergency NSC meeting, the ROK government issued a statement strongly denouncing North Korea's nuclear test as a "serious threat and challenge" to the international community.

The National Defense Committee of the ROK National Assembly adopted a resolution on 25 May (KST) urging governments around the world to take prompt and stern countermeasures against North Korea's latest nuclear test. The parliamentary committee said that Pyongyang must assume full responsibility for all incidents arising from its provoation.

The ROK government also banned its citizens from visiting North Korea, with the exception of those involved with the Kaesong Industrial Complex. The ban also applies to humanitarian aid workers, politicians and civic activists.

On 26 May (KST), the ROK government declared its decision to fully participate in the PSI. President Obama welcomed the decision during a telephone call with President Lee stating that South Korea’s membership is very important and that every other member state will welcome the decision as well.

To confirm that the North indeed detonated a nuclear device, the ROK military started to take air samples on 26 May (KST). A ROK defense ministry official said, “We expect it will be at least a few days before we can confirm that North Korea indeed detonated a nuclear device."

Japanese Reaction. Following the North’s test, the Japanese government set up a special task force at the emergency management center of Prime Minister Taro Aso's office.

In New York, Yukio Takasu, Japan's UN ambassador, met with the Russian ambassador and requested an emergency meeting of the UNSC.

In Hanoi, the Japanese Foreign Minister Nakasone sought China's support for Japan’s push to produce a UNSC resolution, and gained the ROK Foreign Minister’s agreement that the two countries “"call for the U.N. Security Council to convene an emergency meeting on the issue as early as possible."

During a telephone conversation between Prime Minister Aso and President Obama, the two leaders agreed that the UNSC must swiftly adopt a new resolution to impose “additional sanctions” on North Korea. Two leaders also agreed to encourage China and Russia to cooperate in adopting a new, fresh UNSC resolution.

On 26 May (KST), the Japanese House of Representatives unanimously endorsed a resolution at a plenary session condemning North Korea’s nuclear test, slamming it as an “act of violence.” The Japanese ruling Liberal Democratic Party (LDP) and its coalition partner, the New Komeito Party, issued a joint statement calling on the Japanese government to put forth efforts in seeking the passage of a new UNSC resolution and to impose additional unilateral sanctions on North Korea. The Diet resolution claims that “repeated nuclear tests by North Korea are a grave challenge to the international nonproliferation regime and are entirely unacceptable.” The House of Councilors is expected to adopt a similar resolution soon.

In an effort to confirm the North’s claim of its nuclear test, the Japanese Defense Ministry reportedly dispatched aircraft to take air samples from the sky over Japan.

Chinese Reaction. The Chinese government remained fairly muted about the North’s reported nuclear test; however, in contrast to the 05 Apr rocket launch, it released an official statement via its Ministry of Foreign Affairs on 25 May (KST) expressing its dismay about the latest North Korean action. The statement stopped short of an outright condemnation, but it was the harshest and most direct criticism of North Korea since the nuclear test in Oct 06. In the statement, China stated that it is in “resolute opposition” to the test, and that it “strongly demands that North Korea abide by the non-nuclearization commitments, stop related actions that may lead to further deterioration of the situation.” The statement also urged “all parties concerned to respond calmly.”

On 26 May (KST), the Chinese foreign ministry spokesman said that China has directly “conveyed its position” to North Korea and that “China has been maintaining contact throughout with all relevant parties.” At a press briefing, a Chinese foreign ministry official stated that China will demand that North Korea fulfill the obligations it assumed during the Six-Party Talks on its nuclear program. The official stated that the Chinese side hopes that all the parties will work with China on “solving this problem by peaceful means through dialogue and negotiation.” These comments reiterated the Chinese foreign ministry’s official statement released a day earlier.

Russian Reaction. Reacting to the reported nuclear test, the Russian Foreign Ministry said in a statement on 25 May (KST) that North Korea has violated the UNSC Resolution 1718 and that the North’s nuclear tests have dealt a serious blow to the international efforts to strengthen the Nuclear NPT. The Russian State Duma deputies told Interfax on 25 May (KST) that the UNSC should apply economic sanctions against North Korea. The Chairman of the State Duma Defense Committee stated, however, that the security issue with North Korea should only be handled through talks. Along the same line, the Russian Foreign Ministry told Itar-Tass that Russia has urged other countries “not to go off into hysterics” or “overreact” in connection with the nuclear test.

On 26 May (KST), the Russian Foreign Ministry told Itar-Tass that Russia believes a new UN resolution on North Korea should not envisage an international isolation or blockade of North Korea. On the same day, the Russian Deputy Foreign Minister Borodavkin said Russia will not use “unilateral sanctions of any kind” against North Korea. He also stated that Russia believes that there is still a chance for North Korea to return to the Six-Party Talks. The Russian President’s Office, on the other hand, issued a statement on 26 May (KST) condemning the North’s nuclear test.

United Nations Reaction. Over the past 48 hours, the US, UK, Australia, France, Germany, the EU, NATO, and others throughout the international community also condemned the North’s activity. On 25 May (EDT), the UNSC held an emergency session and issued a statement calling the test a “clear violation” of UNSC Resolution 1718, which bans North Korea from any ballistic missile and nuclear activity. The UN Secretary-General Ban Ki-moon said he was "deeply disturbed" by North Korea's nuclear test and later issued a statement deploring it as a violation of UNSC resolutions. On 26 May (EDT) the UNSC’s five permanent members, along with Japan and the ROK (dubbed P5+2), started a closed-door meeting to discuss the UNSC course of action against North Korea. As of the time of this report’s publication, the UNSC P5+2 had concluded its first meeting and the US UN Ambassador Susan Rice said the P5+2 had “very good, productive, initial talks” on the draft resolution against North Korea. The Japanese UN Ambassador Takasu told the reporters after the meeting that “there is a strong understanding” that the 15-nation council will send “a strong message” to North Korea.

North Korea reacts to South Korea’s decision to join the PSI – declares Korean War Armistice “null”

• North Korea said on 27 May it was nullifying the Korean War armistice in response to Seoul's participation in a U.S.-led security campaign and warned of an immediate military strike should any attempt be made to interdict its ships.
  
• The statement, issued by the North's permanent military mission to a joint security area in the demilitarized zone separating the Koreas, also said the country can no longer guarantee the safety of South Korean and US military ships and private vessels moving along the western sea border.
  
• "Our revolutionary armed forces, as they have already declared, will regard the Lee Myung-bak group of traitors' 'full participation' in the PSI as a declaration of war against the DPRK (North Korea)," the Panmunjom Mission of the North's Korean People's Army said.
  
• Further raising the stakes, the North's military mission said it was scrapping the armistice agreement brokered in 1953 at the end of the three-year Korean War.
  
• The spirit of the cease-fire agreement had already been broken by South Korea's participation in the PSI, the military mission claimed, citing a ban on naval blockades imposed by the armistice.
  
• With the armistice now rendered ineffective, the North's mission said the country's military will no more respect the Northern Limit Line, the de-facto border in the Yellow Sea unilaterally drawn at the end of the war by the UN Command. The North has rejected the sea border as illegitimate and demanded it be redrawn further south. Two bloody skirmishes occurred in the area in 1999 and 2002, claiming scores of lives on both sides.
  
• "For the present, we will not guarantee the legal status of the five islands under the south side's control," the mission said, as well as "safe sailing of warships of the U.S. imperialist aggression forces and the South Korean puppet navy and civilian ships operating in the waters around there."
  
• "It is illogical for the DPRK to unilaterally meet the requirements of fair international law and the bilateral agreement since the U.S. imperialists and the Lee Myung-bak group of traitors have reneged on them," it said.
  

North Korean Committee for the Peaceful Reunification of the Fatherland reinforces threat against South Korea’s PSI participation

• Just hours after the North Korean military vowed to take “wartime” actions to retaliate against South Korea’s participation in the PSI, the Committee for the Peaceful Reunification of the Fatherland reinforced the threat with its own statement and accused Seoul of "declaring war" by announcing participation in the PSI.
  
• Pyongyang "will counter with real active measures tantamount to war-time conditions," said the statement carried by the North's Korean Central News Agency.
  
• "We will consider any efforts to hold or search our vessels as a violation of our sacred sovereignty and as grave provocations. We will retaliate viciously," the statement said.
  
• The committee justified its nuclear test, arguing that it is "only natural for a nuclear state to conduct a nuclear test.
  
• The US and its "followers" are not driven by the purpose of stopping nuclear proliferation, but by the "dark intention to solely repress" North Korea, it said.
  

UN Command rejects North Korean nullification of Korean War Armistice

• The US-led United Nations Command in South Korea on 28 May rejected the claim by North Korea that it is no longer bound by the truce that halted war on the Korean Peninsula.
  
• "The armistice remains in force and is binding on all signatories, including North Korea," it said in a release, one day after Pyongyang declared it "will not be bound" to the 1953 deal that ended the three-year Korean War.
  
• "The armistice has served as the legal basis for the ceasefire in Korea for over 55 years," an unidentified UN Command spokesman said in the statement. "The UN Command will adhere to the terms of the armistice and the mechanisms that support it."
  

South Korea and US step up surveillance over North Korea

• The armed forces of South Korea and the US raised their surveillance over North Korea to the second highest level Thursday as the communist state went ahead with its second nuclear test and threatened war, an official said.
  
• The last elevation of the five-stage "WATCHCON" was in Oct 06 when North Korea conducted its first nuclear test. It was then also ramped up to the second highest notch.
  
• "WATCHCON II took effect as of 7:15 a.m.," South Korean defense spokesman Won Tae-jae said in a briefing, adding the five-stage combat alert level, "DEFCON," remains at four.
  

North Korea preparing to fire missiles from west coast

• North Korea continues to show signs of preparations for short-range missile launches from its west coast after firing five from its east coast and testing a nuclear device, a South Korean source said Wednesday.
  
• "Signs continue to be seen that launches will take place in the west," the defense source said.
  
• "Various scenarios concerning North Korean missiles are being analyzed by the South Korean military," the source said. Others said anti-ship missiles may be among those being prepared on the west.
  

Chronology of Major North Korean Statements on The Korean War Armistice

A very good piece from the South Korean Yonhap News Agency:

July 27, 1953 -- The three-year war ends in an armistice, signed between military commanders from North Korea and China on one side and the U.S.-led United Nations Command on the other. South Korea was not a signatory.

The ceasefire was meant to be only a temporary measure before a final peaceful settlement was achieved, though it was never replaced by a formal peace treaty.

May 23, 1994 -- North Korea's Foreign Ministry says the country will no longer be bound by the armistice agreement should the United States go ahead with a multinational naval exercise called the Rim of the Pacific (RIMPAC) drill, which South Korea ultimately participated in. The drill was held from late May to mid-July.

May 24 -- North Korea establishes the Panmunjom Mission of the Korean People's Army, its military mission to the joint security area in the demilitarized zone, after pulling out of the Military Armistice Command, a U.N. organization responsible for supervising the armistice, weeks earlier. The withdrawal came in retaliation against the U.N. Command's appointment in 1991 of a South Korean general as chief of the Military Armistice Command. The North protested, saying South Korea is not a signatory to the armistice.

April 4, 1996 -- The North's Panmunjom Mission says the country is abandoning its obligations to the armistice, such as maintaining and supervising the military demarcation line and the demilitarized zone, protesting imports of tanks, artillery and heavy weapons into South Korea.

Feb. 18, 2003 -- The Panmunjom Mission says the North will not abide by the armistice and that it will take stern measures should South Korea and the U.S. hold joint military drills.

July 1, 2003 -- The Panmunjom Mission criticizes the U.S. plan to spend $11 billion to strengthen weapons for its forces stationed in South Korea and says it will consider the move as a full annulment of the armistice.

Aug. 22, 2006 -- Ahead of an annual South Korea-U.S. joint military exercise known as Ulji Focus Lens, the Panmunjom Mission issues a statement saying the drill is tantamount to an act of war and the country will no longer abide by the armistice.

May 27, 2009 -- The mission denounces South Korea's participation in a U.S.-led security campaign, the Proliferation Security Initiative, as a violation of the armistice and says its military will be no longer bound by the armistice. With the armistice rendered ineffective, it said the Korean Peninsula was now back in a state of war.

Japan, US compile draft UN resolution on North Korea

Following report from Japan's Yomiuri Shimbun:

Japan and the United States on Wednesday compiled a draft of a new U.N. Security Council resolution against North Korea in response to its nuclear test, including such measures as making cargo inspections of North Korean vessels mandatory and imposing financial sanctions.

The draft has been circulated among Britain, China, France and Russia--all permanent members of the Security Council--and South Korea.

According to diplomatic sources, the draft strengthens Resolution 1718, which was adopted in October 2006 after North Korea's first nuclear test. Based on a draft prepared by the United States, it also reflects proposals made by Japan, China, France and Russia, the sources said.

The seven countries will hold an ambassadorial-level meeting Thursday to discuss a new resolution based on the draft.

According to the sources, the draft includes five proposals made by the United States:

• Imposing a total arms embargo on North Korea.
  
• Making cargo inspections of North Korean vessels mandatory.
  
• Making respective countries report results of cargo inspections.
  
• Prohibiting banking transactions with North Korea.
  
• Imposing a ban on making loans or granting aid to the country, except for humanitarian reasons.
  

In addition, it also includes measures proposed by Japan and France such as the designation of North Korean organizations and individuals who should have their assets frozen or be banned from traveling outside the reclusive state.

North Korea reacts to South Korea's decision to fully participate in PSI: declares Korean War Armistice "null"

The following was carried as an unscheduled program, and is observed to be North Korea's first reaction to South Korea's decision to participate in PSI:

(Originally broadcasted by North Korea's Korean Central Broadcasting Station in Korean)

Statement P'anmunjo'm Mission of the Korean People's Army: 

Those Who Toy With Us Will Not Be Able To Avoid Merciless Punishment Beyond Imagination The unstable situation of our country -- which is neither at war nor in peace -- is dashing toward an extreme situation where war may break out at any time.

Such a situation is directly connected with the frenzied maneuver of the US imperialists -- who are frantically running amok with military isolation and crushing maneuvers against us, the other party of war, while totally turning a blind eye to the Armistice Agreement -- and the Lee Myung-bak gang of traitors, which are riding on them.

Its typical movement is none other than the Lee Myung-bak gang of traitors' reckless full participation maneuver in the US-led Proliferation Security Initiative, which was forced by the conspiracy and collusion of the master and its stooge.

Originally, the US attempt to drag in the puppets into this initiative, aimed at military blockade and sheer brigandish naval blockade against us, has been persistently pushed since the Bush administration.

While speaking paradoxically saying that there is the need to convert PSI as a permanent international system, even the incumbent US rulers, including Obama, instigated and draw South Korean puppets to this.

This is a violent infringement and a clear negation of not only the international law but also the Korean Armistice Agreement, which prohibits any kind of blockade against war counterpart.

In spite of that, Lee Myung-bak gang of traitors, who has become inveterate of flunkeyism and subservience, unhesitatingly committed the act of fully participating in PSI, blindly obeying the demands of their masters.

With this, the US imperialists and Lee Myung-bak gang of traitors drew the situation on the Korean peninsula to a state of war.

The P'anmunjo'm Mission of the Korean People's Army clarifies principled position of our revolutionary armed forces to cope with the situation created.

1. As has been already declared to the world, our revolutionary armed forces will regard the Lee Myung-bak gang of traitors' full participation in the PSI as a declaration of war against us.

Accordingly, we will brand hostile acts, such as interdictions and inspections, against our vessels having peaceful purposes - no matter how trivial they may be - as unpardonable violation of our Republic's sovereignty and will respond with immediate and strong military strikes.

2. The incumbent rulers of the United States are so crazed with the maneuver to crush the DPRK that they negated the Armistice Agreement itself, not to mention international law. Without being satisfied with this, the authorities recklessly abandoned even their responsibility as the very signer of the agreement and finally dragged the puppets into the PSI. In this situation, our army will not be bound by the Armistice Agreement any longer, either.

If the Armistice Agreement loses its binding force, the Korean peninsula will surely get back to the state of war in legal terms, and our revolutionary armed forces will proceed to military action corresponding to it.

3. At present, the KPA will not be able to guarantee the legal status of the South side's five islands -- Paengnyo'ng, Taech'o'ng, Soch'o'ng, Yo'np'yo'ng, and U Islands -- in the northwest territorial waters of our maritime Military Demarcation Line in the West Sea of Korea and the safe navigation of the vessels of the US imperialist forces of aggression and puppet Navy as well as general ships that move in the nearby waters.

Under a condition where the US imperialists and Lee Myung-bak gang of traitors have given up the just [kongjo'nghan] demands of international law and mutual agreement, it does not make sense if it's only us who implement them the demands and agreement.

There is no greater miscalculation than thinking that the US-style theory that the weak are the prey of the strong can work with us.

The South and the United States should correctly be aware that we also have mighty military strength and our-style striking method that can, if necessary, can enable DPRK to sit astride nearby objects at one stroke or strike the vital spot of the United States.

Those who toy with us will not be able to avoid merciless punishment beyond imagination.

Regional and United Nations Reactions to the North Korean Nuclear Test: The First 48-hours after the Test [10:00 AM, 25 May – 10:00 AM, 27 May (KST)]

Overview. At 9:54 AM (KST), 25 May, North Korea conducted its second nuclear test near the northeastern town of Kilchu (near the site of the North’s 2006 nuclear test).

In the open media, South Korea’s Yonhap News Agency first carried the news of the test at 11:49 AM (KST), reporting that “South Korea has detected an ‘artificial earthquake’ in North Korea.” At 12:00 PM (KST), North Korea’s KCBS broadcasted the KCNA communiqué of a “successful” nuclear test. At 1210 hours, the KCNA published its communiqué in English. Along with its nuclear test, North Korea also test-fired two short-range missiles on 25 May, and three short-range missiles on 26 May.  There are also indications of possible preparation for more missile launch.  

Reactions from countries in the region have included South Korea putting its military on alert and convening an emergency meeting of its National Security Council (NSC). On 26 May (KST), South Korea announced its decision to fully participate in the PSI. South Korea has also banned all visits to North Korea by South Korean nationals, with the exception of those traveling to the joint industrial complex in Kaesong. South Korea and US presidents agreed that the test was a “reckless violation of international law that compels action in response,” and agreed to “strongly punish” North Korea for its test.

Japan reacted angrily to the North Korean nuclear test, with Prime Minister Taro Aso saying, "It is a major challenge to the nuclear nonproliferation regime and is a clear violation of the UNSC resolution. It absolutely cannot be allowed." Aso also told reporters "The right way to proceed is to start with Security Council discussion." The Japanese government on 25 May (KST) began considering banning all exports to North Korea -- it already bars exports of luxury items and other goods to North Korea.

China stopped short of outright condemnation of North’s action, but did issue a statement that contained most direct criticism of North Korea since the Oct 06 nuclear test. Russia issued a statement condemning the North, but remained cautious. Both countries stated that they are opposed to the North Korean nuclear test and that the North should live up to its obligations of international agreements concerning denuclearization. Although both countries urged the international community to resolve the situation through talks and negotiations, they both acknowledged a new UNSC resolution, probably embedded with more sanctions, against North Korea seems to be inevitable.

Following the 25 May test, the US, UK, Australia, France, Germany, the UN, the EU, NATO and others throughout the international community also condemned the North’s activity. On 25 May (EDT), the UNSC held an emergency session and issued a statement calling the test a “clear violation” of UNSC Resolution 1718, which bans North Korea from any ballistic missile and nuclear activity. The UN Secretary-General Ban Ki-moon said he was "deeply disturbed" by North Korea's nuclear test and later issued a statement deploring it as a violation of UNSC resolutions. On 26 May (EDT) the UNSC’s five permanent members, along with Japan and the ROK, started a closed-door meeting to discuss the UNSC next course of action against North Korea.

North Korean Media Behavior. For the past 48hours, the North Korean media has behaved normally. There has been one follow-up reporabout the nuclear test in the past 48 hours –KCNA reported on 26 May (KST) that “a meeting of Pyongyangites was held at the Pyongyang Indoor Stadium Tuesday to celebrate the second successful nuclear test.” There has been only one report in the past 48 hours that dealt directly with the international reactions to the nuclear test – a 26 May (KST) Chosun Sinbo article urged the US for a bilateral talks with North Korea to “cut off the escalating cycle of tension.” During the same time period, the North Korean media has released two reports justifying the nuclear test, missile launches, and continued weapons development (aside from the Chosun Sinbo report mentioned earlier).

South Korean (the ROK) Reactions. Following the North Korean nuclear test, the ROK government immediately convened an emergency meeting of the NSC meeting and placed its military on high alert. The ROK President Lee Myung-bak said he was disappointed with the North and ordered complete readiness to counter any additional provocations from the communist nation. At the end of the emergency NSC meeting, the ROK government issued a statement strongly denouncing North Korea's nuclear test as a "serious threat and challenge" to the international community.

The National Defense Committee of the ROK National Assembly adopted a resolution on 25 May (KST) urging governments around the world to take prompt and stern countermeasures against North Korea's latest nuclear test. The parliamentary committee said that Pyongyang must assume full responsibility for all incidents arising from its provoation.

The ROK government also banned its citizens from visiting North Korea, with the exception of those involved with the Kaesong Industrial Complex. The ban also applies to humanitarian aid workers, politicians and civic activists.

On 26 May (KST), the ROK government declared its decision to fully participate in the PSI. President Obama welcomed the decision during a telephone call with President Lee stating that South Korea’s membership is very important and that every other member state will welcome the decision as well.

To confirm that the North indeed detonated a nuclear device, the ROK military started to take air samples on 26 May (KST). A ROK defense ministry official said, “We expect it will be at least a few days before we can confirm that North Korea indeed detonated a nuclear device."

Japanese Reaction. Following the North’s test, the Japanese government set up a special task force at the emergency management center of Prime Minister Taro Aso's office.

In New York, Yukio Takasu, Japan's UN ambassador, met with the Russian ambassador and requested an emergency meeting of the UNSC.

In Hanoi, the Japanese Foreign Minister Nakasone sought China's support for Japan’s push to produce a UNSC resolution, and gained the ROK Foreign Minister’s agreement that the two countries “"call for the U.N. Security Council to convene an emergency meeting on the issue as early as possible."

During a telephone conversation between Prime Minister Aso and President Obama, the two leaders agreed that the UNSC must swiftly adopt a new resolution to impose “additional sanctions” on North Korea. Two leaders also agreed to encourage China and Russia to cooperate in adopting a new, fresh UNSC resolution.

On 26 May (KST), the Japanese House of Representatives unanimously endorsed a resolution at a plenary session condemning North Korea’s nuclear test, slamming it as an “act of violence.” The Japanese ruling Liberal Democratic Party (LDP) and its coalition partner, the New Komeito Party, issued a joint statement calling on the Japanese government to put forth efforts in seeking the passage of a new UNSC resolution and to impose additional unilateral sanctions on North Korea. The Diet resolution claims that “repeated nuclear tests by North Korea are a grave challenge to the international nonproliferation regime and are entirely unacceptable.” The House of Councilors is expected to adopt a similar resolution soon.

In an effort to confirm the North’s claim of its nuclear test, the Japanese Defense Ministry reportedly dispatched aircraft to take air samples from the sky over Japan.

Chinese Reaction. The Chinese government remained fairly muted about the North’s reported nuclear test; however, in contrast to the 05 Apr rocket launch, it released an official statement via its Ministry of Foreign Affairs on 25 May (KST) expressing its dismay about the latest North Korean action. The statement stopped short of an outright condemnation, but it was the harshest and most direct criticism of North Korea since the nuclear test in Oct 06. In the statement, China stated that it is in “resolute opposition” to the test, and that it “strongly demands that North Korea abide by the non-nuclearization commitments, stop related actions that may lead to further deterioration of the situation.” The statement also urged “all parties concerned to respond calmly.”

On 26 May (KST), the Chinese foreign ministry spokesman said that China has directly “conveyed its position” to North Korea and that “China has been maintaining contact throughout with all relevant parties.” At a press briefing, a Chinese foreign ministry official stated that China will demand that North Korea fulfill the obligations it assumed during the Six-Party Talks on its nuclear program. The official stated that the Chinese side hopes that all the parties will work with China on “solving this problem by peaceful means through dialogue and negotiation.” These comments reiterated the Chinese foreign ministry’s official statement released a day earlier.

Russian Reaction. Reacting to the reported nuclear test, the Russian Foreign Ministry said in a statement on 25 May (KST) that North Korea has violated the UNSC Resolution 1718 and that the North’s nuclear tests have dealt a serious blow to the international efforts to strengthen the Nuclear NPT. The Russian State Duma deputies told Interfax on 25 May (KST) that the UNSC should apply economic sanctions against North Korea. The Chairman of the State Duma Defense Committee stated, however, that the security issue with North Korea should only be handled through talks. Along the same line, the Russian Foreign Ministry told Itar-Tass that Russia has urged other countries “not to go off into hysterics” or “overreact” in connection with the nuclear test.

On 26 May (KST), the Russian Foreign Ministry told Itar-Tass that Russia believes a new UN resolution on North Korea should not envisage an international isolation or blockade of North Korea. On the same day, the Russian Deputy Foreign Minister Borodavkin said Russia will not use “unilateral sanctions of any kind” against North Korea. He also stated that Russia believes that there is still a chance for North Korea to return to the Six-Party Talks. The Russian President’s Office, on the other hand, issued a statement on 26 May (KST) condemning the North’s nuclear test.

United Nations Reaction. Over the past 48 hours, the US, UK, Australia, France, Germany, the EU, NATO, and others throughout the international community also condemned the North's activity. On 25 May (EDT), the UNSC held an emergency session and issued a statement calling the test a “clear violation" of UNSC Resolution 1718, which bans North Korea from any ballistic missile and nuclear activity. The UN Secretary-General Ban Ki-moon said he was "deeply disturbed" by North Korea's nuclear test and later issued a statement deploring it as a violation of UNSC resolutions. On 26 May (EDT) the UNSC’s five permanent members, along with Japan and the ROK (dubbed P5+2), started a closed-door meeting to discuss the UNSC course of action against North Korea. As of the time of this report’s publication, the UNSC P5+2 had concluded its first meeting and the US UN Ambassador Susan Rice said the P5+2 had “very good, productive, initial talks” on the draft resolution against North Korea. The Japanese UN Ambassador Takasu told the reporters after the meeting that “there is a strong understanding” that the 15-nation council will send “a strong message” to North Korea.

North Korea Conducts Second Nuclear Test

At 1200 PM (noon), 25 May (Korea Standard Time), North Korea's Korean Central Broadcasting Station (KCBS) ran the following Korean Central News Agency (KCNA) communique declaring a "successful" underground nuclear test.

Full translated English text below:

At the demand of our scientists and technicians, another round of underground nuclear testing was successfully conducted on 25 May 2009, Chuch'e 98, as part of the measures to enhance the Republic's self-defensive nuclear deterrent in all directions.

The nuclear test at this time was safely conducted at a new high level in terms of explosive power and control technology, and the test result enabled the smooth resolution of scientific and technical issues for further increasing the power of nuclear weapons and incessantly developing nuclear technology.

The success of the nuclear test at this time is greatly encouraging our army and people who have risen up as one in the 150-day battle, vigorously igniting the flame of new great revolutionary upswing for opening the gate to a powerful state.

With the power of military-first, the nuclear test will contribute to safeguard the sovereignty of the country and the nation and socialism, and guarantee peace and security on the Korean peninsula and its neighboring regions.

In and Around North Korea: 16 - 22 May 2009

North Korea wants the US to change its ‘hostile’ policy and Bosworth ways he will not visit North Korea to revive the Six-Party Talks until the two American journalists are freed

• The North Korean state media said on 17 May that North Korea will not come back to the negotiation table unless the US and the ROK give up their "hostile policy" towards it.
• The North also said it will never attend the Six-Party Talks aiming to end Pyongyang's nuclear program, and will strengthen its nuclear power no matter what other nations have agreed in the Six-Party Talks.
  
• A ROK government official said on 17 May the US special envoy for North Korea policy will visit North Korea to seek ways to revive stalled Six-Party Talks only after two American journalists are released.
  

US Chairman of Joint Chiefs of Staff calls on North Korea not to conduct a second nuclear test

• Admiral Michael Mullen, chairman of the Joint Chiefs of Staff, Monday urged North Korea to refrain from conducting another nuclear test or any other provocative acts that might further isolate the communist North
  
• Speaking to a forum at the Brookings Institution, Mullen, however, would not predict whether North Korea will actually detonate another nuclear device in the near future, after testing one in 2006
  

No ministerial meeting between US and North Korea'

• According to reports on 20 May, US Secretary of State Clinton and her North Korean counterpart Pak Ui-chun will not have ministerial talks during a regional forum in July.
  
• Clinton and Pak are to attend the ASEAN Regional Forum (ARF) in Thailand from 17 – 23 Jul, which triggered speculation that they may hold talks on the sidelines of the forum.
  
• Radio Free Asia (RFA) reported the US has no plan to hold a meeting with North Korea, quoting an unidentified official of the State Department.
  

China to continue trying to bring North Korea back to talks

• China, the chair of the six-party talks for denuclearizing North Korea, expressed on 21 May its plan to continue trying to bring Pyongyang back to the negotiations after its announcement to pull out, former Japanese Foreign Minister Yoriko Kawaguchi said.
  
• Kawaguchi told reporters that Chinese Foreign Minister Yang Jiechi made the comment in talks with her and former Australian Foreign Minister Gareth Evans, who are in Beijing to chair an international meeting on nuclear nonproliferation.
  
• "We were told that China, as the chair of the six-party talks, will continue trying to bring North Korea back to the meeting," Kawaguchi told reporters.
  

North Korea's point-man on inter-Korean relations Executed

• Sources said on 18 May North Korea executed its point-man on South Korea last year, holding him responsible for wrong predictions about Seoul's new conservative government that has ditched a decade of engagement policy toward Pyongyang.
  
• Choe Sung-chol, who as vice chairman of the North's Asia-Pacific Peace Committee had pushed for bold reconciliation with Seoul's previous liberal governments, disappeared from public sight early last year amid reports that he was fired.
  
• Rumors spread in January that he was forced to work at a chicken farm, but a number of sources privy to North Korean internal affairs told Yonhap News Agency that Choe was executed last year to shoulder the blame for inter-Korean relations, which changed drastically with South Korean President Lee Myung-bak's inauguration.
  

Is Kim Jong-il grooming his second son to be the successor?

• A news report said on 20 May, North Korean leader Kim Jong-il is grooming his middle son as successor, not the youngest son as has been widely speculated, quoting a former North Korean political aide who defected.
  
• Kim Jong Chol is holding a secret high-level post in the North's ruling Workers' Party as part of his successor training and reports directly to the leader, Seoul's Dong-a Ilbo newspaper quoted defector Kim Duk Hong as saying. The 29-year-old "is highly likely to take over the father's post," Kim said.
  
• Kim explained his reasoning and said, “Jong Chol is working as the General First Vice-Director of the Guidance Department after entering the Central Committee of the Party. He receives reports from the three other First Vice-Directors, takes them to Kim Jong-il, receives instructions from Kim Jong-il and controls the other departments.”
  
• Kim said, “In the early 1970s, in North Korea not Kim Jong-il but Pyong-il was in the limelight as the successor to Kim Il Sung, but the final successor was Jong-il. The situation of Jong Cheol and Jong Un looks like that.”
  
• 20 May's report contrasts with widespread media speculation that leader Kim considers the middle son too "girlish" to become leader, and is grooming the third and youngest son, Jong Un, 26, as his successor.
  

New signs that point to Kim Jong-il’s third son, Jong Un, as an potential heir

• An Osaka-based activist organization recently reported students in North Korea are singing songs in praise of Kim Jong-il's third son and potential successor, Kim Jong Un.
  
• The students said they were forced to practice the song all day long instead of taking their regular classes, and could not return home until they had thoroughly memorized it.
  
• The group’s report said, "The fact that schools are teaching students to sing such songs is tantamount to officially declaring the heir (to North Korea)."
  
• The report also states North Korean troops were ordered to shout slogans in praise of Jong Un, e.g., "Let's protect Gen. Kim Jong Un — the young general, the morning star general who inherits the bloodline of Paektu — with all our hearts."
  

N. Korea's 2008 trade hits record US$3.8 bln

• A report said on 18 May North Korean trade with the outside world, excluding South Korea, hit a record US$3.8 billion last year.
  
• Trade jumped 29.7 percent compared with 2007, the Korea Trade-Investment Promotion Agency, a South Korean trade agency, said in the report. Last year, North Korea's exports rose 23 percent to $1.13 billion with imports climbing 32.7 percent to $2.69 billion, the report said. The country still posted a trade deficit of $1.56 billion for the year.
  
• The report also showed that China's influence on North Korea's moribund economy is rising quickly. The communist nation exported $750 million worth of goods to China and imported $2.03 billion last year. "North Korea's trade with China hit a record last year and keeps growing," the report said.
  

China's economic influence over North Korea grows

• China accounted for almost three-quarters of North Korea's total trade last year and its economic influence over the impoverished state is expected to grow further, data showed.
  
• The North's trade volume with the world, excluding South Korea, was 3.82 billion dollars in 2008, the highest figure since 4.17 billion dollars in 1990, the Korea Trade-Investment Promotion Agency said in a report.
  
• Trade with China accounted for 73 per cent of the total compared to just 33 per cent in 2003.
  

UNDP officials to visit North Korea to discuss reopening office there and resuming suspended projects

• UNDP officials visited Seoul last week and discussed the matter with ROK officials, and are to visit Pyongyang later this month to discuss resuming projects suspended two years ago; the UNDP office will reopen in June at the earliest.
  
• The UNDP had conducted development projects in the North since 1981, but withdrew in Mar 07 soon after suspicions arose over North Korea's misappropriation of development funds.
  
• UNDP officials made the decision to return in Jan after North Korea allegedly agreed to guarantee independent auditing and alter the payment and selection of North Korean staff, previously selected by the North, not by the UNDP.
  

US Secretary of State says no US aid to North Korea unless Pyongyang returns to Six-Party Talks

• The US Secretary of State Clinton said on 20 May (EDT) that the US will not provide any economic aid to North Korea unless the North returns to Six-Party Talks on ending its nuclear ambitions.
  
• "We are not going to expend one penny of those funds in the absence of their voluntary return to the six-party talks and their resumption of the obligations that they've already agreed to," Clinton told a Senate Appropriations Committee hearing. "This money is, you know, there as a backstop in the event we see the kind of changes in actions that we're looking for from the North Koreans."
  
• Clinton was discussing the US$98 million the Barack Obama administration has asked for in next year's budget to provide heavy fuel oil and cover the disabling of North Korea's nuclear facilities under a Six=Party Talks agreement.
  

Trader Held Over Export of Military-Usable Trucks To N. Korea

• Japanese police said a trader was arrested on 19 May on suspicion of attempting to export to North Korea via South Korea two large tanker trucks that can be converted into launch pads for ballistic missiles.
  
• The police said the suspect was identified as Chong Rin Chae, 50, a South Korean national, who runs a trading house and uses the Japanese name of Tadao Morita. Chong, a resident of Maizuru, Kyoto Prefecture, on the Sea of Japan coast, has denied the allegations.
  
• The police said exports of such trucks from Japan are restricted under the foreign exchange and trade law because they can be converted into military equipment, such as vehicles for transporting and launching missiles. Traders must apply for permission to export products that can be converted for military use.
  
• Investigations showed that Chong allegedly shipped the two used tanker trucks to the stopover port of Busan in South Korea for export to North Korea from Kobe port in Japan on Jan. 28 last year without gaining permission from the minister of economy, trade and industry, the police said. Each truck is capable of carrying about 12 tons.
  

US maintains weapons trade embargo on North Korea for lack of cooperation on terrorism

• The United States has maintained North Korea on its list of countries subject to weapons trade embargoes for their lack of cooperation in U.S. anti-terrorism efforts.
  
• "Pursuant of section 40A of the Arms Export Control Act and Executive Order 11958, as amended, I hereby determine and certify to the Congress that the following countries are not cooperating fully with United States antiterrorism efforts: Cuba, Eritrea, Iran, Democratic People's Republic of Korea, Syria and Venezuela," James Steinberg, deputy secretary of state, said in a statement in the Federal Register dated 08 May.
  
• The designation is separate from the State Department's list of state sponsors of terrorism, from which North Korea was dropped in October when then Assistant Secretary of State Christopher Hill visited Pyongyang to agree verbally on a verification protocol for the North's nuclear facilities.
  

Seoul calls for 'unconditional' talks with North Korea over the Kaesong Industrial Complex (KIC) and the ROK Unification Minister rules out shutdown of KIC

• South Korea urged North Korea on 18 May to unconditionally return to the dialogue table to discuss the fate of the KIC.
  
• The call came after the communist nation rejected Seoul's two previous proposals for a follow-up meeting to talks held on 21 Apr, at which Pyongyang demanded wage hikes and payment of land use fees.
  
• An official at the ROK presidential office Cheong Wa Dae said, “Notifying the other side of a unilateral decision and telling them to either accept it or leave the country is simply unacceptable.”
  
• The ROK Unification Minister said on 18 May that the ROK is not considering closing the KIC despite the "crisis."
  
• On 21 May, the ROK Unification Minister urged the North to respond to the ROK’s dialogue proposal over the KIC.
  

North Korea proposes new rules on the KIC

• A ROK spokesperson said on 21 May that North Korea has presented new rules for South Korean firms operating at the KIC, including a US$10,000 fine for destroying roadside facilities.
  
• In its latest proposal sent at the end of Apr to South Korea's management office in Kaesong, North Korea laid out detailed rules for using and maintaining roads, they said. It demanded fines of up to $10,000 for destroying roadside grave stones and other stone markers and $30 for damaging trees.
  
• The draft also calls for a $1,000 fine for building road blockades without permission, a $500 fine for lacking safety measures in road construction, $50 for unregistered operation of caterpillar bulldozers and tractors harmful to pavement surfaces and $30 for jaywalking.
  
• The ROK Unification Ministry spokeswoman Lee Jong-joo said the proposal is part of a "routine" process in setting up detailed regulations rather than a politically motivated gesture.
  

US likely to provide terrorism related intelligence to the ROK

• A ROK military source in Seoul, Korea, said on 17 May the US may provide confidential terrorism intelligence to the ROK troops overseas.
  
• According to the government insider, Washington is planning to provide real-time information about regional developments collected by the National Geospatial-Intelligence Agency, the Central Intelligence Agency and the Defense Intelligence Agency.
  
• The two governments have been discussing a memorandum of understanding outlining the information-sharing plan, the source added. "After the MOU is concluded, reports will be delivered to the Cheonghae unit in Somali waters and the Dongmyeong unit in Lebanon," said the source. "I am aware that both countries are also discussing whether to dispatch some DIA agents to those units."