Yonhap News Summary

The following is the second summary of major stories moved by Yonhap News Agency
on Monday.

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(2nd LD) N. Korea criticizes U.S. air training as 'hostile'
SEOUL -- North Korea accused the United States on Monday of raising threats of
war through an ongoing U.S. air drill across South Korea, while starting
preparing for an important election that will likely prompt government
reshuffles.
U.S. Air Forces Korea stages the quarterly drill this week. The regular training
involves more than 8,500 U.S. troops, mostly airmen, according to a report on
Sunday by U.S. military newspaper Stars and Stripes.
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S. Korea, Japan to deepen cooperation on N. Korean abductions
SEOUL -- The leaders of South Korea and Japan agreed Monday to step up joint
efforts to resolve the issue of their nationals abducted by North Korea, a
Japanese government official said after their summit here.
President Lee Myung-bak and his counterpart Taro Aso also outlined a plan to
cooperate on aid to Afghanistan, he added.
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(News Analysis) Korea, Japan avoid thorny issues amid economic meltdown
SEOUL -- The ongoing economic downturn forced the heads of South Korea and Japan
to dodge historically contentious issues and focus instead on saving their
troubled economies during their summit here Monday.
But their failure to address the issues that have most often caused tension
between the two neighbors has already sparked debate over the success of their
meeting.
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(2nd LD) Court freezes Ssangyong Motor's assets, debt
SEOUL -- A local court froze Ssangyong Motor Co.'s assets and liabilities on
Monday before deciding whether to grant the ailing automaker protection from
creditors.
The smallest carmaker in South Korea filed for court receivership last week to
avoid bankruptcy. It usually takes about a month for the court to make decision.
For months, Ssangyoung has been pleading with its parent, China's Shanghai
Automotive Industry Corp. (SAIC), for a cash injection, but in vain.
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(LEAD) Seoul shares dip 2.05 pct on economic woes
SEOUL -- South Korean stocks closed 2.05 percent lower Monday as investors grew
jittery over a deepening global downturn following the announcement of dismal
U.S. job reports, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 24.21 points to
1,156.75. Volume was moderate at 347.9 million shares worth 3.85 trillion won
(US$2.83 billion), with losers outpacing gainers 653 to 182.
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(LEAD) On-line pundit's report cost gov't US$2 bln: prosecutors
SEOUL -- Prosecutors said Monday that allegedly misleading statements by an
influential on-line pundit critical of the government cost the nation some US$2
billion late last year.
Prosecutors apprehended an unemployed 30-year-old man last week whom they believe
authored over 100 on-line posts critical of the government's handling of the
economy. Identified by his surname Park, the suspect is more widely known by his
Internet alias "Minerva."
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POSCO in talks with Toyota Motor over steel supply
SEOUL -- POSCO, the world's fourth-largest steelmaker, said Monday that it is in
negotiations with Toyota Motor Corp. to supply steel to the Japanese automaker.
On Sunday, Japanese newspaper Asahi Shinbun reported that POSCO would supply
steel to Toyota's domestic plants, citing industry sources.
(END)