Yonhap News Summary

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

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(six-way talks) Stalled talks may end without deal
BEIJING -- Veteran negotiators at this week's six-way talks on the North Korean
nuclear program risked going back home without a deal Thursday in what is
probably the last chance for the Bush administration to save a troubled
aid-for-denuclearization agreement signed last year.
Pyongyang refused to allow international inspectors to take samples from soil and
waste at its nuclear sites for analysis at foreign laboratories, South Korean
envoy Kim Sook said.
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U.S. hints at putting N. Korea back on terror list over stalled nuke talks
WASHINGTON -- The United States Wednesday hinted at relisting North Korea as a
state sponsor of terrorism since the North has balked at allowing samples to be
taken from its nuclear facilities under the terms of the multilateral
aid-for-denuclearization talks.
State Department spokesman Sean McCormack told a daily news briefing that that
action cannot be ruled out.
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Obama urged to send special envoy to meet with N. Korean leader
WASHINGTON -- A prominent U.S. expert on Korea called on Washington's incoming
Barack Obama administration on Wednesday to send a special envoy to meet directly
with North Korean leader Kim Jong-il and discuss the denuclearization of the
communist state.
The remarks by Evans Revere, president of the New York-based Korea Society, is in
line with Obama's campaign pledge that he will be willing to meet with the
leaders of rogue states.
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U.S. denies report it has acknowledged N. Korea as a nuclear power
WASHINGTON -- The State Department Wednesday refuted a U.S. defense policy report
that described North Korea as a nuclear weapons state, saying the report does not
represent the U.S. government's official position.
"That is not our national policy," spokesman Sean McCormack said. "And the
document they referenced does not represent the official views of the United
States."
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(2nd LEAD) BOK cuts key rate to record low 3 pct
SEOUL -- South Korea's central bank lowered its key interest rate by a record one
percentage point on Thursday, the fourth rate cut in two months, in an effort to
bolster the slowing economy.
In a monthly policy meeting, the Bank of Korea (BOK) slashed the benchmark
seven-day repo rate to a record low of 3 percent. The previous lowest level was
3.25 percent set in early November 2004.
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Seoul shares up 0.42 pct in late morning
SEOUL -- South Korean shares rose 0.42 percent late Thursday morning on the
central bank's drastic interest rate cut and overnight Wall Street gains,
analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.82 points to
1,150.69 as of 11:20 a.m.
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Seoul's foreign reserves 'enough' to cover external debt: official
SEOUL -- South Korea holds "enough" foreign exchange reserves to pay its external
debts and avoid a possible liquidity crunch, a senior economic policymaker said
Thursday.
"Our US$200 billion foreign reserves consist mostly of assets that can be easily
recouped," Vice Finance Minister Kim Dong-soo said on a local radio program. "The
global financial crunch caused the reserves to decline recently, but the amount
is still the world's sixth-largest and we think it is enough to cope with
external payment demand."
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(LEAD) USFK to begin 'normal' three-year tours in 2009: commander
SEOUL -- U.S. troops serving in South Korea under a decades-old joint defense
pact will begin what the U.S. calls "normal" three-year family accompanied tours
in 2009, the chief of U.S. Forces Korea (USFK) said Thursday.
Currently, over 80 percent of U.S. forces in Korea are on one-year
family-unaccompanied tours.
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Gov't weighs support for auto parts industry
SEOUL -- The government is considering providing liquidity to local auto parts
makers to help them overcome a cash crunch stemming from auto companies' output
cuts, officials said Thursday.
The move comes as Hyundai Motor Co. and other car makers, stung by a sharp drop
in domestic and overseas demand, have announced plans to reduce output, dealing a
harsh blow to the auto parts industry.
brk@yna.co.kr
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