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) N. Korea takes risk to enter information age
SEOUL -- The launch of a third-generation mobile phone service in North Korea
this week by an Egypt-based firm highlights the reclusive communist regime's
desire to enter the information age even at the risk of threatening its survival.
North Korea has typically maintained tight control over the flow of information
within its borders. Foreign visitors are required to relinquish their mobile
phones upon arrival, and must fill out forms to request Internet access. While
its most recent move may suggest a more progressive tack, analysts have cautioned
against attaching too much meaning to the deal. They note that the service will
still likely be limited only to those among the upper echelons of society.
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N. Korea to remove inactive companies from Rajin-Sonbong economic zone
SEOUL -- North Korea is preparing to remove inoperative foreign companies from a
special economic zone in the country's northeast, officials said after a report
that some Chinese firms in the area were asked to leave.
"North Korea appears to have conducted a survey in October to sort out companies
that exist only on paper from the Rajin-Sonbong economic zone," Kim Ho-nyoun,
spokesman for the Unification Ministry, told reporters.
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(LEAD) S. Korean stocks inch up on economic stimulus
SEOUL -- South Korean shares managed to add 0.29 percent Tuesday, as retail
investors bet that a government stimulus plan will pick up the slowing economy,
analysts said. The local currency gained against the U.S. dollar.
Bucking early losses, the benchmark Korea Composite Stock Price Index (KOSPI)
climbed 3.37 points to close at 1,161.56. Volume was heavy at 618.36 million
shares worth 6.71 trillion won (US$4.96 billion), with gainers outpacing losers
511 to 351.
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(LEAD) Bond fund to help stabilize wobbling debt market: experts
SEOUL -- South Korea's envisioned bond fund is widely expected to help ease a
credit crunch in the local debt market, but the slowing economy and lingering
credit risks could put a crimp on long-term stabilization, analysts said Tuesday.
Local banks, insurers and brokerage houses are poised to launch a 10-trillion-won
(US$7.39 billion) bond fund this week which will be run for three years and used
to purchase corporate bonds and debts issued by banks and other financial firms.
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S. Korean auto production forecast to drop 6.5 pct next year
SEOUL -- South Korean automakers are expected to produce a combined 3.6 million
vehicles in 2009, a 6.5 percent decline from this year's estimated 3.85 million
units, due to the ongoing economic slump, an industry group said Tuesday.
Domestic sales are projected to drop 8.7 percent to 1.05 million units next year,
the lowest since 1998 when the country was hit by an Asia-wide financial
meltdown, according to the Korea Automobile Manufacturers Association.
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(LEAD) Rival parties clash over pending bills, crippling parliament
SEOUL -- South Korea's ruling party said Tuesday it will push to ratify a free
trade pact with the United States before the end of the year, further
exacerbating tension with the main opposition party amid a legislative deadlock.
The South Korean parliament, which convened a one-month special session on Dec.
10, ground to a deadlock this week, with the main opposition Democratic Party
(DP) boycotting the session.
(END)