Yonhap News Summary

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

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S. Korea remains 5th biggest buyer of U.S. defense goods: report
WASHINGTON -- South Korea was the fifth biggest client of U.S. defense goods on a
government-to-government contact basis in 2007, a congressional report shows.
South Korea purchased US$1 billion worth of defense products from the U.S. last
year, according to a Congressional Research Service report, "U.S. Arms Sales:
Agreements with and Deliveries to Major clients 2000-2007," released on Nov. 26.
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S. Korea urges North to accept dialogue offer to thaw relations
SEOUL -- South Korea urged Pyongyang on Tuesday to respond to its repeated offers
of dialogue to thaw cross-border relations, refuting the North's repeated
accusations that Seoul's gestures are "hypocritical."
The North has recently intensified criticism against the South in nearly daily
commentaries and statements that suggest it will not lend an ear to Seoul's
proposal unless it first reverses its tough policy toward Pyongyang.
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Bad loan ratio rises in Nov. on deepening slump
SEOUL -- More bank loans extended to companies turned sour in November as a
deepening economic slump aggravated their financial woes, the nation's financial
watchdog said Tuesday, adding to worries over lenders' soundness.
The loan default rate by companies and households stood at 1.18 percent at the
end of November, compared with 1.14 percent a month ago, according to the
Financial Supervisory Service (FSS).
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(LEAD) Gov't to boost tariffs on oil products amid stable prices
SEOUL -- The government said Tuesday that it will raise tariffs on gasoline and
other oil products next year as international crude prices stabilize and
inflationary pressure eases.
Tax rates on crude oil, gasoline, diesel, kerosene and fuel oil will be raised to
2 percent in February from the current 1 percent and pushed up again to 3 percent
in March, the Ministry of Strategy and Finance said in a statement.
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Hyundai Motor's U.S. output nearly halves on economic woes
SEOUL -- Production at Hyundai Motor Co.'s lone U.S. plant fell by nearly half in
November, hit by the worst industry downturn in 25 years in the world's largest
auto market, industry data showed Tuesday.
Hyundai, South Korea's top automaker, built some 11,000 vehicles at its Alabama
plant, compared with the 21,503 vehicles it produced a month ago, according to
data collected by the Korea Automobile Manufacturers' Association.
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Middle schools hold controversial exam amid opposition
SEOUL -- Middle schools across the nation conducted a standardized exam for
seventh and eight grade students Tuesday amid controversy over its intent and
effectiveness.
Some 1.35 million students in 374 middle schools began taking the test at 9 a.m.
The Seoul Metropolitan Office of Education (SMOE) developed the multiple-choice
test, which covers Korean language, English, math, science and civics.
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Parliament wraps up rice subsidies probe without clear conclusion
SEOUL -- An independent parliamentary probe into a government subsidy scandal
involving lawmakers and public officials ended with a whimper on Tuesday, leaving
more questions than answers.
The 44-day inquiry into the corruption scam, which involved thousands of
government officials including the former vice health minister, opened with a
bang last month. Farmers who remained unconvinced that legal authorities would
conduct a transparent investigation had requested a separate probe by
legislators.
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