(3rd LD) N. Korea willing to return war prisoners in exchange for economic benefits:

(ATTN: UPDATES from 4th para with abductee detail, official quote, minister's visit
to Beijing)
BEIJING/SEOUL, Dec. 22 (Yonhap) -- North Korea has conveyed to South Korea that
it is willing to return some South Korean war prisoners and civilian abductees in
exchange for economic benefits, sources said Monday.

Pyongyang made the proposal through various undercover channels, hoping to resume
inter-Korean economic exchange projects that have been suspended amid chilled
ties this year, the sources well-versed in North Korean issues said on condition
of anonymity.
Unification Minister Kim Ha-joong is currently visiting Beijing to meet with
senior Chinese officials over the North Korean nuclear stalemate and frozen
inter-Korean relations. Seoul officials, however, denied having any contact with
Pyongyang on the prisoners.
At least 560 former South Korean soldiers are still believed to be held in the
communist North since they were taken prisoner during the 1950-53 Korean War.
Seoul officials say the North also abducted 494 civilians -- mostly fishermen
operating in the East and Yellow seas -- during the Cold War era.
Pyongyang says it was not holding the South Koreans as prisoners of war but they
have chosen to remain in the North. The North also denies abducting the
fishermen.
"I've not heard of it," Kim Ho-nyoun, spokesman for the Unification Ministry
handling inter-Korean affairs, said.
"There is nothing being promoted under the table," Kim said, adding that Seoul is
willing to open official dialogue with Pyongyang any time.
Still, Pyongyang's alleged proposal draws attention as Seoul has also been
contemplating the exchange. A senior official at the defense ministry told
reporters earlier this month that it was considering financial "incentives" to
North Korea for the return of South Korean soldiers.
"The proposal is not yet finalized, but the government is considering various
ways, such as providing incentives to the North, to win their return," the
official said on condition of anonymity.
Asked whether it has since floated the idea to Pyongyang, the defense ministry
said "no."
"We have no knowledge about whether economic compensation was proposed," a
defense ministry official said on Monday, requesting he not be named.
During his China visit until Thursday, the unification minister was expected to
meet several Chinese top officials familiar with North Korea, including Dai
Bingguo, China's state councilor, Wang Jiarui, head of the Chinese Communist
Party's international liaison department, Foreign Minister Yang Jiechi, as well
as China's chief envoy on North Korea denuclearization talks, Wu Dawei.
Concerning speculation the minister may also meet North Korean officials in
Beijing, Seoul officials ruled out the possibility.
Inter-Korean relations have dramatically soured since conservative South Korean
President Lee Myung-bak took office in February. Lee suspended food aid and
demanded North Korea come clean on its nuclear ambitions and the abductee issue
if it wants Seoul's assistance.
North Korea retaliated by evicting hundreds of South Koreans at the joint
industrial complex in its border town of Kaesong as of Dec 1. It also curtailed
border traffic and halted South Korean tours to its mountain resort.
hkim@yna.co.kr
(END)