Tillerson signaled U.S. policy of patience on North Korea is over

Secretary of State Rex Tillerson looks on during a joint press conference with Chinese Foreign Minister Wang Yi (not pictured) at Diaoyutai State Guesthouse in Beijing, China, March 18, 2017. REUTERS/Lintao

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson “sent a very clear signal that our policy of strategic patience is over” with North Korea during his recent visit to China, a White House spokesman said on Monday.

Spokesman Sean Spicer made the comment at a news briefing in reply to a question about Tillerson’s reaction to an announcement by North Korea about its latest rocket-engine test on Sunday. Tillerson was in Beijing during his first visit to Asia for talks dominated by concern about Pyongyang’s nuclear and missile programs.

(Reporting by Steve Holland; Writing by Eric Walsh; Editing by Jonathan Oatis)

Vietnam seeks South Korean support in South China Sea

South Korea's Foreign Minister Yun Byung-Se (L) is greeted by Vietnam's Prime Minister Nguyen Xuan Phuc in Hanoi, Vietnam March 20, 2017.

HANOI (Reuters) – Vietnam’s Prime Minister sought support for the nation’s stance in the South China Sea when he met South Korea’s foreign minister in Hanoi on Monday.

Vietnam is the country most openly at odds with China over the waterway since the Philippines pulled back from confrontation under President Rodrigo Duterte.

“The Prime Minister proposed that South Korea continue its support over the position of Vietnam and Southeast Asia on the South China Sea issue and to help the country improve its law enforcement at the sea”, the government said in a statement on its website after the meeting between Prime Minister Nguyen Xuan Phuc and South Korea’s Foreign Minister Yun Byung-se.

The statement did not say whether South Korea backed Vietnam’s position on the South China Sea.

Yun did affirm his country’s willingness to promote ties despite instability in South Korea after the ousting of President Park Geun-hye over a graft scandal.

South Korea is Vietnam’s biggest foreign investor thanks to companies like Samsung.

South Korea and China are currently in dispute over deployment of the U.S. anti-missile defense system. South Korea on Monday has complained to the World Trade Organization about Chinese retaliation against its companies over the deployment.

Last week, Vietnam demanded China stop sending cruise ships to the area in response to one of Beijing’s latest moves to bolster its claims to the strategic waterway.

China claims 90 percent of the potentially energy-rich South China Sea. Brunei, Malaysia, the Philippines, Vietnam and Taiwan lay claim to parts of the route, through which about $5 trillion of trade passes each year.

(Reporting by My Pham; Editing by Julia Glover)

U.S. policy of ‘strategic patience’ with North Korea over: Tillerson

U.S. Secretary of State Rex Tillerson (L) speaks as South Korean Foreign Minister Yun Byung-Se looks on during a news conference in Seoul, South Korea March 17, 2017. REUTERS/JUNG Yeon-Je

By Ju-min Park and James Pearson

SEOUL (Reuters) – A U.S. policy of strategic patience with North Korea has ended, Secretary of State Rex Tillerson said in South Korea on Friday, adding that military action would be “on the table” if North Korea elevated the threat level.

Tillerson began his first Asian visit as secretary of state in Japan on Wednesday and will travel to China on Saturday with a main focus on finding a “new approach” on North Korea after what he described as two decades of failed efforts to denuclearize the insular nation.

“Let me be very clear: the policy of strategic patience has ended. We are exploring a new range of security and diplomatic measures. All options are on the table,” Tillerson told a news conference in Seoul.

He said any North Korean actions that threatened the South would be met with “an appropriate response”.

“If they elevate the threat of their weapons program to a level that we believe requires action, that option is on the table,” Tillerson said when asked about military action.

Tillerson also called on China to implement sanctions against North Korea and said there was no need for China to punish South Korea for deploying an advanced U.S. anti-missile system aimed at defending against North Korea.

China says the Terminal High Altitude Area Defense (THAAD) system’s powerful radar is a threat to its security.

“We believe these actions are unnecessary and troubling,” Tillerson said, referring to what South Korea sees as Chinese retaliation in the form of business restrictions in response to the deployment of the missile system.

“We also believe it is not the way for a regional power to help resolve what is a serious threat for everyone. So we hope China will alter its position on punishing South Korea.”

“We hope they will work with us to eliminate the reason THAAD is required.”

North Korea has conducted two nuclear tests and a series of missile launches since the beginning of last year.

Last week, it launched four more ballistic missiles and is working to develop nuclear-tipped missiles that can reach the United States.

South Korean Foreign Minister Yun Byung-se told the joint news conference the missile system was only intended to defend against North Korea, not any other country.

FACING OFF AT THE DMZ

Earlier, Tillerson visited the Demilitarized Zone, and looked across the heavily fortified border at armed North Korean guards, staring back. He met some of the 28,500 U.S. troops stationed in South Korea.

Tillerson also met South Korean Prime Minister Hwang Kyo-ahn, who is also acting president.

The latest bout of tension with North Korea comes at a time of political turmoil in South Korea. President Park Geun-hye was ousted last week after being impeached in a corruption scandal and an election for a new president will be on May 9.

A liberal opposition politician, Moon Jae-in, who has raised questions about the THAAD deployment, is leading in the opinion polls.

Tillerson, a former oil executive with no prior diplomatic experience, said he expected a new government would “continue to be supportive” of the deployment, adding it was also intended to protect U.S. troops in South Korea.

China resents U.S. pressure to do more on North Korea and says it is doing all it can but will not take steps to threatened the livelihoods of the North Korean people.

China has urged North Korea to stop its nuclear and missile tests and said South Korea and the United States should stop joint military exercises and seek talks instead.

Chinese Foreign Ministry spokeswoman Hua Chunying reiterated that talks were the best way to resolve the problems of the Korean peninsula.

“As a close neighbor of the peninsula, China has even more reason than any other country to care about the situation,” she told a briefing.

Hua also said the THAAD would “upset the regional strategic balance”. Its radar, with a range of more than 2,000 km (1,250 miles), meant it could cover a large part of China, far outside the scope of the threat South Korea faces, Hua said.

“We do not oppose South Korean taking necessary measures to protect its security, but these measures cannot be based upon harming the security interests of South Korea’s friendly neighbor, China,” she said.

(Additional reporting by Ben Blanchard in BEIJING, Christine Kim in SEOUL; Writing by Robert Birsel; Editing by Raju Gopalakrishnan)

South Korea to hold election May 9, prosecutors summon ousted Park

South Korea's ousted leader Park Geun-hye greets her supporters as she arrives at her private home in Seoul, South Korea, March 12, 2017. REUTERS/Kim Kyung-Hoon

By Christine Kim and Ju-min Park

SEOUL (Reuters) – South Korea said on Wednesday it will hold an election on May 9 to choose a successor for former President Park Geun-hye, who was removed from office in a historic court ruling last week over a widening corruption scandal.

Prosecutors said on Wednesday Park – the first democratically elected president to be removed from office in South Korea – would be summoned for questioning on Tuesday into the influence-peddling scandal.

The Constitutional Court dismissed Park from office on Friday when it upheld a parliamentary impeachment vote in December.

Park has denied any wrongdoing.

The Samsung Group [SAGR.UL], South Korea’s largest conglomerate, is already embroiled in the scandal and the Yonhap news agency said prosecutors had started investigating two other conglomerates – the Lotte Group and SK Group.

Samsung denies any wrongdoing. Spokesman for both the SK Group and Lotte said they would cooperate with the investigation.

The turmoil comes at a time of rising tension with North Korea over its nuclear and missile programs, and with China over the deployment of a U.S. anti-missile system in South Korea that China sees as a threat to its security.

U.S. Secretary of State Rex Tillerson will visit South Korea, as well as Japan and China, this week.

Prime Minister Hwang Kyo-ahn, who has been acting president since the impeachment vote, said he would not run in the election.

Minister of the Interior Hong Yun-sik promised the vote would be the most clean and transparent ever.

“This election is unprecedented in our history,” Hong told a briefing, referring to the short campaign period.

Hwang had emerged in opinion polls as a top conservative candidate even though he had not declared an intention to run.

The scandal has undermined support for the ruling conservatives, and Hwang’s decision would appear to bolster the chances of a prominent liberal, Moon Jae-in, who is leading in opinion polls.

‘FIND TRUTH’

Park was summoned to appear for questioning at 9.30 a.m. (0030 GMT) next Tuesday, the prosecutors’ office said.

Her lawyers said in a statement they would cooperate.

“The lawyers will cooperate with the investigation to find substantive truth swiftly by actively helping with various procedures,” they said.

Park had declined to be questioned by prosecutors or testify at the Constitutional Court when she was in office.

After she left the presidential Blue House on Sunday, she issued a statement hinting of defiance, saying: “It will take time, but I believe the truth will be revealed.”

Prosecutors have not said how long they think their investigation would last.

A special prosecution team had accused Park of colluding with a friend, Choi Soon-sil, to pressure big businesses into contributing to foundations set up to support her policies and allowing Choi to influence state affairs.

Choi also denied wrongdoing.

Jay Y. Lee, the head of Samsung Group, is on trial on bribery, embezzlement and other charges in connection with the scandal. Lee denies all charges.

The prospect of an opposition election victory has raised questions about the future in South Korea of the U.S.-made Terminal High Altitude Area Defense (THAAD) anti-missile system, which China opposes because it says its radar can penetrate its territory.

Tillerson will meet Hwang and Foreign Minister Yun Byung-se in Seoul on Friday. He is not scheduled to see opposition figures, a U.S. State Department official said, raising questions about the durability of any agreements.

The aircraft carrier the USS Carl Vinson is in South Korean waters this week for exercises with South Korean forces.

North Korea said the exercises were part of a “reckless scheme” to attack it and it warned the United States of “merciless” strikes if the carrier infringed on its sovereignty or dignity.

(Reporting by Ju-min Park and Christine Kim; Additional reporting by Se Young Lee, Hyunjoo Jin; Writing by Robert Birsel; Editing by Bill Tarrant)

U.S. carrier joins South Korea drills, North Korea warns of ‘merciless’ strikes

A U.S. F18 fighter jet lands on the deck of U.S. aircraft carrier USS Carl Vinson during an annual joint military exercise called "Foal Eagle" between South Korea and U.S., in the East Sea, South Korea, March 14, 2017. REUTERS/Kim Hong-Ji

By Hongji Kim and Sang-gyu Lim

ABOARD THE USS CARL VINSON (Reuters) – As the USS Carl Vinson plowed through seas off South Korea on Tuesday, rival North Korea warned the United States of “merciless” attacks if the carrier infringes on its sovereignty or dignity during U.S.-South Korean drills.

F-18 fighter jets took off from the flight deck of the nuclear-powered carrier in a dramatic display of U.S. firepower amid rising tension with the North, which has alarmed its neighbors with two nuclear tests and a series of missile launches since last year.

“While this is a routine deployment for the Carl Vinson strike group, really the centerpiece for us … is this exercise we’re doing with the ROK navy called ‘Foal Eagle’,” Rear Admiral James W. Kilby, commander of the Carrier Strike Group 1, told reporters, referring to South Korea as the Republic of Korea.

North Korea said the arrival of the U.S. strike group in the seas off the east of the Korean peninsula was part of a “reckless scheme” to attack it.

“If they infringe on the DPRK’s sovereignty and dignity even a bit, its army will launch merciless ultra-precision strikes from ground, air, sea and underwater,” the North’s state news agency KCNA said.

North Korea’s official name is the Democratic People’s Republic of Korea.

“On March 11 alone, many enemy carrier-based aircraft flew along a course near territorial air and waters of the DPRK to stage drills of dropping bombs and making surprise attacks on the ground targets of its army,” KCNA said.

Last week, North Korea fired four ballistic missiles into the sea off Japan in response to annual U.S.-South Korea military drills, which the North sees as preparation for war.

The murder in Malaysia last month of North Korean leader Kim Jong Un’s estranged half-brother has added to a sense of urgency to efforts to handle North Korea.

U.S. Secretary of State Rex Tillerson is due to make his first visit to South Korea on Friday.

Last week, the U.S. ambassador to the United Nations said President Donald Trump’s administration was re-evaluating its North Korea strategy and “all options are on the table”.

CHINESE OPPOSITION

Compounding regional tension, China is vehemently opposed to the deployment in South Korea of an advanced U.S. anti-missile system.

The United States and South Korea say the Terminal High Altitude Area Defense anti-missile system is for defense against North Korea, but China fears its powerful radar can probe deep into its territory and compromise its security.

The United States began to deploy the system a week ago, a day after North Korea launched its latest four missile tests.

South Korean and U.S. troops began the large-scale joint drills, which are billed as defensive in nature, on March 1.

The exercise last year involved about 17,000 American troops and more than 300,000 South Koreans. South Korea has said this year’s exercise would be of a similar scale.

The United States has also started to deploy “Gray Eagle” attack drones to South Korea, a U.S. military spokesman said on Monday.

China says the exercises do nothing to ease tension.

Last week, it called on North Korea to stop its weapons tests and for South Korea and the United States to stop their drills.

“We hope the relevant side can respect the security concerns of countries in the region, can take a responsible attitude and do more to benefit the easing of tension, rather than irritating each other,” Chinese foreign ministry spokeswoman Hua Chunying told a daily news briefing, referring to the United States.

(Additional reporting by Hyunyoung Yi, Ben Blanchrd in BEIJING; Writing by James Pearson; Editing by Robert Birsel and Clarence Fernandez)

North Korea boycotts ‘politically motivated’ U.N. rights session

Special Rapporteur on the situation of human rights in North Korea Tomas Ojea Quintana addresses a news conference after his report to the Human Rights Council at the United Nations in Geneva, Switzerland,

Special Rapporteur on the situation of human rights in North Korea Tomas Ojea Quintana addresses a news conference after his report to the Human Rights Council at the United Nations in Geneva, Switzerland, March 13, 2017. REUTERS/Denis Balibouse

By Stephanie Nebehay

GENEVA (Reuters) – North Korea boycotted a U.N. review of its human rights record on Monday, shunning calls to hold to account the Pyongyang leadership for crimes against humanity documented by the world body.

A 2014 U.N. report detailed the use of political prison camps, starvation and executions, saying security chiefs and possibly even Supreme Leader Kim Jong-un himself should face international justice.

The U.N. Human Rights Council held a two-hour session on abuses in the Democratic People’s Republic of Korea (DPRK) amid rising tensions on the divided peninsula following its latest missile tests last week and two nuclear tests last year.

“We are not participating in any meeting on DPRK’s human rights situation because it is politically motivated,” Choe Myong Nam, Pyongyang’s deputy ambassador to the U.N. in Geneva, told Reuters.

U.N. special rapporteur on human rights in the DPRK Tomas Ojea Quintana said he regretted the decision but was still seeking engagement with North Korea.

Rising political and military tensions should not shield ongoing violations from international scrutiny, he said.

“Military tensions have brought human rights dialogue with the DPRK to a standstill,” Ojea Quintana told the 47-member forum.

He also called for an independent investigation into the killing of Kim Jong Nam, estranged half-brother of Kim Jong-un, in Malaysia last month, saying there may be a need to “protect other persons from targeted killings”.

Between 80,000 and 120,000 people are held in four known political prison camps in North Korea and hundreds of families in South Korea and Japan are looking for missing relatives believed abducted by North Korean agents, Ojea Quintana said.

“We remain deeply concerned by ongoing widespread and gross human rights violations and abuses in the DPRK, including summary executions, enslavement, torture, arbitrary detention, and enforced disappearances,” said William Mozdzierz,

head of the U.S. delegation.

He added that the U.S. is open to improved relations if the DPRK was willing to meet its international obligations.

South Korea’s envoy Lim Jung-taek voiced dismay that three years after the landmark U.N. report there was “no glimpse of hope” for ending “systematic, widespread and gross violations”.

Ying Wang of China, North Korea’s main ally, said Beijing was “against the politicization of human rights issues” while seeking dialogue and de-escalation on the peninsula.

Sara Hossain, a member of the Council’s group of independent experts on accountability, said the U.N. should consider ways of prosecuting those responsible for human rights abuses in North Korea, possibly by creating an international tribunal.

“The groundwork for future criminal trials should be laid now,” she said.

(Editing by Robin Pomeroy and Julia Glover)

Mike Pence to tour Asia next month amid security crises

U.S. Vice President Mike Pence speaks about the American Health Care Act during a visit to the Harshaw-Trane Parts and Distribution Center in Louisville, Kentucky, U.S

JAKARTA (Reuters) -U.S. Vice President Mike Pence will visit Japan and Indonesia as part of an Asian tour next month, sources said on Monday, amid concerns the Trump administration is rolling back Barack Obama’s “pivot to Asia.”

U.S. President Donald Trump has already withdrawn from the Trans-Pacific Partnership (TPP) trade agreement, which was seen as an economic pillar of the strategy.

A Trump administration official told Reuters: “The vice president is going to Asia next month I believe.”

The tour will include South Korea and Australia, the Nikkei Asian Review reported, with North Korea’s missile and nuclear programs and South Korea’s political crisis likely topics for discussion.

China has been infuriated by South Korea’s plan to deploy a U.S. missile defense system targeted at the North Korean threat. South Korea is also going through political turmoil after a court removed President Park Geun-hye from office over a graft scandal.

Pence is also expected to visit Tokyo for a U.S.-Japan economic dialogue, according to a source familiar with the matter.

The visit will come as North Korea’s latest missile launches and the assassination in Malaysia of North Korean leader Kim Jong Un’s estranged half-brother add urgency to the region’s security.

It will also follow this month’s trip by U.S. Secretary of State Rex Tillerson to Japan, South Korea, and China.

The TPP had been the main economic pillar of the Obama administration’s pivot to the Asia-Pacific region in the face of a fast-rising China.

Proponents of the pact have expressed concerns that abandoning the project, which took years to negotiate, could strengthen China’s economic hand in the region at the expense of the United States.

Indonesia’s chief security minister said Pence would meet President Joko Widodo to discuss terrorism and other security issues.

Indonesia has the world’s largest Muslim population and has recently grappled with a series of low-level militant attacks inspired by Islamic State.

“We discussed the planned visit of U.S. vice president Mike Pence to Indonesia and the strategic problems that can be on the agenda to discuss with our president,” chief security minister Wiranto told reporters after meeting the U.S. ambassador to Jakarta.

He added that no dates have been finalized.

In Indonesia, Pence is also expected to discuss a brewing contract dispute between the government and American mining group Freeport McMoRan Inc, said two Indonesian government sources.

Freeport has threatened to take the Indonesian government to court over newly revised mining regulations that have prompted a major scale-back in its operations in the eastern province of Papua.

(Reporting by Agustinus Beo Da Costa and Kanupriya Kapoor; Additional reporting by Malcolm Foster in Tokyo and David Brunnstrom in Washington; Writing by Kanupriya Kapoor; Editing by Nick Macfie and Jeffrey Benkoe)

Cruise control: China squeezes South Korea as boats and planes stay away

A Royal Caribbean cruise is seen at a port in Dalian, Liaoning province, China, July 20, 2017. Picture taken July 20, 2017. REUTERS/Stringer

By Adam Jourdan and Cynthia Kim

SHANGHAI/SEOUL (Reuters) – Pressure in China on travel firms forced airlines and cruise operators to cut routes to South Korea, as the fallout spread on Friday from a diplomatic row over Seoul’s plans to deploy a U.S. missile defense system against Beijing’s objections.

China Eastern Airlines Corp Ltd <600115.SS> and Spring Airlines Co Ltd <601021.SS> stopped offering flights on their websites between the eastern Chinese city of Ningbo and popular South Korean tourist island Jeju from next week.

Korea’s Eastar Jet said it was halting flights between the South Korean cities of Cheongju and tourist hotspot Jeju with various Chinese cities including Ningbo, Jinjiang and Harbin.

This followed Carnival Corp’s <CCL.N> Costa Cruises and Royal Caribbean Cruises <RCL.N> cutting South Korean visits by their China ships. Royal Caribbean cited “recent developments regarding the situation in South Korea”.

The moves reflect a more aggressive and blatant stance against South Korean business in China, although Beijing has not directly said it is targeting South Korean firms.

An internal South Korean government document seen by Reuters said Chinese authorities gave a “7-point” verbal instruction to travel firms to curtail or ban trips to South Korea.

These included a ban on tour groups visiting South Korea from March 15, cruise ships not being allowed to dock in South Korea ports and a warning that those who violated the guidance would face “severe punishment”.

Reuters could not immediately reach China’s tourism administration for comment. China Eastern and Spring Airlines did not respond to requests for comment.

The crackdown has sent a chill across South Korea’s retail and tourism sectors, which rely heavily on China trade, and prompted South Korea to say it will consider filing a complaint against China to the World Trade Organization.

South Korea sold $124 billion worth of goods and services to China last year, about five times the amount it exported to nearby Japan and double the amount it shipped to its second-biggest overseas market, the United States.

Tourism is a particularly sensitive sector, with official South Korean data showing almost half of the visitors to the country come from China.

Asked about cruise operators cancelling South Korean port visits, an official from South Korea’s Ministry of Trade, Industry and Energy told Reuters the ministry was checking if any WTO rules have been violated.

“If we are to launch a dispute, we still need to make sure if anything has been ordered by Beijing,” the official said.

“RELEVANT DEPARTMENTS”

Political risk analysts said the widespread actions against South Korean firms pointed to centralized coordination.

Princess Cruises, also owned by Carnival, said in a statement on Friday it would remove visits to South Korea from routes after talks with “relevant departments”.

“Due to the current situation, Princess Cruises’ China team has been in close dialogue and prudent discussions with relevant departments,” the firm said. “All routes which involve South Korea have been altered.”

The diplomatic problems with its biggest trade partner have come at a difficult time for South Korea.

On Friday, South Korea’s Constitutional Court removed President Park Geun-hye from office on Friday over a graft scandal involving the country’s conglomerates.

Analysts said the upheaval had given China the opportunity to put pressure on Park’s possible successors to ditch or delay the installation of the U.S. Terminal High Altitude Area Defence (THAAD) missile system.

“I think they’ll keep up this pressure well into the period where we get a new government in South Korea,” said Andrew Gilholm, director of analysis for China and North Asia at risk consultancy Control Risks.

“Possibly the reason they’re pushing so hard is that they are trying to influence whatever policy the next government in Seoul takes.”

Meantime, South Koreans living in China have been advised by business groups to adopt a low profile, while residents and shopkeepers in a Shanghai neighborhood where many South Koreans live told Reuters of a growing sense of anxiety.

“I feel wherever I am people are watching me. On the street, in the car and at restaurants, I don’t feel I can freely speak Korean,” said Seo Lan Kyung, 48, a housewife who said she has been living in China for 18 years.

“I want to keep living here but increasingly there’s a feeling of impending crisis.”

(Additional reporting by Christian Shepherd and Muyu Xu in BEIJING, Alexandra Harney in SHANGHAI, Heekyong Yang and Hyunjoo Jun in SEOUL; Editing by Simon Cameron-Moore)

South Korean court throws president out of office, two die in protest

Protesters supporting South Korean President Park Geun-hye clash with riot policemen near the Constitutional Court in Seoul, South Korea. Kyodo/via REUTERS

By Joyce Lee and Cynthia Kim

SEOUL (Reuters) – South Korea’s Constitutional Court removed President Park Geun-hye from office on Friday over a graft scandal involving the country’s conglomerates at a time of rising tensions with North Korea and China.

The ruling sparked protests from hundreds of her supporters, two of whom were killed in clashes with police outside the court, and a festive rally by those who had demanded her ouster who celebrated justice being served.

“We did it. We the citizens, the sovereign of this country, opened a new chapter in history,” Lee Tae-ho, who leads a movement to oust Park that has held mostly peaceful rallies in downtown involving millions, told a large gathering in Seoul.

Park becomes South Korea’s first democratically elected leader to be forced from office, capping months of paralysis and turmoil over the corruption scandal that also landed the head of the Samsung conglomerate in detention and on trial.

A snap presidential election will be held within 60 days.

She did not appear in court and a spokesman said she would not be making any comment. Nor would she leave the presidential Blue House residence on Friday.

“Park is not leaving the Blue House today,” Blue House spokesman Kim Dong Jo told Reuters.

Park was stripped of her powers after parliament voted to impeach her but has remained in the president’s official compound.

The court’s acting chief judge, Lee Jung-mi, said Park had violated the constitution and law “throughout her term”, and despite the objections of parliament and the media, she had concealed the truth and cracked down on critics.

Park has steadfastly denied any wrongdoing.

The ruling to uphold parliament’s Dec. 9 vote to impeach her marks a dramatic fall from grace of South Korea’s first woman president and daughter of Cold War military dictator Park Chung-hee. Both her parents were assassinated.

Park, 65, no longer has immunity and could now face criminal charges over bribery, extortion and abuse of power in connection with allegations of conspiring with her friend, Choi Soon-sil.

Graphic: Who’s Who in Korea scandal http://fingfx.thomsonreuters.com/gfx/rngs/SOUTHKOREA-POLITICS/010030H812T/SOUTHKOREA-POLITICS.jpg

MARKETS RISE

Prime Minister Hwang Kyo-ahn was appointed acting president and will remain in that post until the election. He called on Park’s supporters and opponents to put their differences aside to prevent deeper division.

“It is time to accept, and close the conflict and confrontation we have suffered,” Hwang said in a televised speech.

A liberal presidential candidate, Moon Jae-in, is leading in opinion polls to succeed Park, with 32 percent in one released on Friday. Hwang, who has not said whether he will seek the presidency, leads among conservatives, none of whom has more than single-digit poll ratings.

“Given Park’s spectacular demise and disarray among conservatives, the presidential contest in May is the liberals’ to lose,” said Yonsei University professor John Delury.

Relations with China and the United States could dominate the coming presidential campaign, after South Korea this month deployed the U.S. THAAD missile defense system in response to North Korea’s stepped up missile and nuclear tests.

Beijing has vigorously protested against the deployment, fearing its radar could see into its missile deployments. China has curbed travel to South Korea and targeted Korean companies operating in the mainland, prompting retaliatory measures from Seoul.

The Seoul market’s benchmark KOSPI index <.KS11> and the won currency <KRW=> rose after the ruling.

The prospect of a new president in the first half of this year instead of prolonged uncertainty would buoy domestic demand as well as the markets, said Trinh Nguyen, senior economist at Natixis in Hong Kong.

“The hope is that this will allow the country to have a new leader that can address long-standing challenges such as labor market reforms and escalated geopolitical tensions,” he said.

Park was accused of colluding with her friend, Choi, and a former presidential aide, both of whom have been on trial, to pressure big businesses to donate to two foundations set up to back her policy initiatives.

The court said Park had “completely hidden the fact of (Choi’s) interference with state affairs”.

Park was also accused of soliciting bribes from the head of the Samsung Group for government favors, including backing a merger of two Samsung affiliates in 2015 that was seen as supporting family succession and control over the country’s largest “chaebol” or conglomerate.

Samsung Group leader Jay Y. Lee has been accused of bribery and embezzlement in connection with the scandal and is in detention. His trial began on Thursday.

He and Samsung have denied wrongdoing.

Graphic: South Korea’s impeachment – http://fingfx.thomsonreuters.com/gfx/rngs/SOUTHKOREA-POLITICS/010030NC1EQ/SOUTHKOREA-POLITICS.jpg

‘COMMON CRIMINAL’

The scandal and verdict have exposed fault lines in a country long divided by Cold War politics.

While Park’s conservative supporters clashed with police outside the court, elsewhere most people welcomed her ouster. A recent poll showed more than 70 percent supported her impeachment.

Hundreds of thousands of people have for months been gathering at peaceful rallies in Seoul every weekend to call for her to step down.

On Friday, hundreds of Park’s supporters, many of them elderly, tried to break through police barricades at the courthouse. Police said one 72-year-old man was taken to hospital with a head injury and died. The circumstances of the second death were being investigated.

Six people were injured, protest organizers said.

Police blocked the main thoroughfare running through downtown Seoul in anticipation of bigger protests.

Park will be making a tragic and untimely departure from the Blue House for the second time in her life.

In 1979, having served as acting first lady after her mother was killed by a bullet meant for her father, she and her two siblings left the presidential compound after their father was killed.

This time, she could end up in jail.

Prosecutors have named Park as an accomplice in two court cases linked to the scandal, suggesting she is likely to be investigated.

North Korean state media wasted little time labeling Park a criminal.

“She had one more year left as ‘president’ but, now she’s been ousted, she will be investigated as a common criminal,” the North’s state KCNA news agency said shortly after the court decision.

Graphic: Falls from grace around the world – http://fingfx.thomsonreuters.com/gfx/rngs/SOUTHKOREA-POLITICS-IMPEACH/0100404008D/SOUTHKOREA-PARK-IMPEACHMENT.jpg

(Additional reporting by Ju-min Park, James Pearson, Heekyong Yang, Jeong Eun Lee, Suyeong Lee and Dahee Kim in SEOUL, Yeganeh Torbati in WASHINGTON; Writing by Robert Birsel and Jack Kim; Editing by Bill Tarrant and Nick Macfie)

U.S. starts deploying anti-missile system in South Korea after defiant North’s latest test

Terminal High Altitude Area Defense (THAAD) interceptors arrive at Osan Air Base in Pyeongtaek, South Korea, in this handout picture provided by the United States Forces Korea

By James Pearson and Ju-min Park

SEOUL (Reuters) – The United States started to deploy the first elements of its advanced anti-missile defense system in South Korea on Tuesday after North Korea’s test of four ballistic missiles, U.S. Pacific Command said, despite angry opposition from China.

The announcement came as North Korean state media said leader Kim Jong Un had personally supervised Monday’s missile launches by an army unit that is positioned to strike U.S. bases in Japan, stepping up threats against Washington as U.S. troops conduct joint military exercises with South Korea.

“Continued provocative actions by North Korea, to include yesterday’s launch of multiple missiles, only confirm the prudence of our alliance decision last year to deploy THAAD to South Korea,” U.S. Pacific Commander Admiral Harry Harris said in a statement, referring to the Terminal High Altitude Area Defense (THAAD) anti-missile system.

The move by the U.S. military is likely to deepen the brewing conflict between South Korea and China, which says the THAAD deployment destroys the regional security balance.

The four ballistic missiles fired by North Korea landed in the sea off Japan’s northwest, angering Seoul and Tokyo, days after Pyongyang promised retaliation over the military drills that it sees as preparation for war.

U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe discussed the launches by the nuclear-armed North during a phone call on Tuesday.

“Japan and the U.S. confirmed that the latest North Korean missile launches were clearly against U.N. resolutions and a clear provocation against the regional and international community,” Abe told reporters. “(North Korea’s) threat has entered a new phase.”

Trump also spoke to South Korea’s acting President Hwang Kyo-ahn to discuss the North’s missile launches, Hwang’s office said.

“MERCILESSLY RETALIATE”

Reclusive North Korea, which has carried out a series of nuclear and missile tests in defiance of United Nations resolutions, issued a typically robust statement on state news agency KCNA after the missile launches.

“In the hearts of artillerymen … there was burning desire to mercilessly retaliate against the warmongers going ahead with their joint war exercises,” KCNA said.

It said Kim ordered the Korean People’s Army’s Strategic Force “to keep highly alert as required by the grim situation in which an actual war may break out any time, and get fully ready to promptly move, take positions and strike so that it can open fire to annihilate the enemies”.

The missiles North Korea fired on Monday were unlikely to have been intercontinental ballistic missiles (ICBMs), South Korea said, which can reach the United States. They flew on average 1,000 km (620 miles) and reached an altitude of 260 km (160 miles).

Some landed as close as 300 km (190 miles) from Japan’s northwest coast, Japan’s defense minister said earlier.

South Korean military and intelligence officials said on Tuesday the four North Korean missiles appeared to be an upgraded version of the Scud type – Extended-Range Scud.

North Korea is mired in a separate diplomatic row with Malaysia over the killing of Kim’s estranged half-brother at Kuala Lumpur airport last month.

The two countries have expelled each other’s ambassador from their capitals and on Tuesday announced tit-for-tat bans on departures of each other’s nationals, sharply escalating tensions between two countries that, until the killing of Kim Jong Nam, had maintained rare close ties.

DIPLOMATIC STANDOFF

The United States and Japan have requested a United Nations Security Council meeting on the latest North Korean missile launches, which will likely be scheduled for Wednesday, diplomats said.

The planned installation of the U.S. anti-missile defense system has led to a diplomatic standoff between China and South Korea.

Chinese authorities have closed nearly two dozen retail stores of South Korea’s Lotte Group, which approved a land swap with the country’s military last week to allow it to install the system.

On Tuesday, Foreign Ministry spokesman Geng Shuang repeated China’s resolute opposition to THAAD, saying the country would take the steps necessary to protect its security interests.

“The consequences of this are on the shoulders of the United States and South Korea. We again strongly urge the relevant sides to stop the deployment process and not keep going down the wrong path,” he added.

China’s state-run Global Times warned the possibility of war on the Korean peninsula was growing because of the U.S.-South Korean military drills and the North Korean missile launches.

“The Chinese public is angry that Pyongyang’s nuclear program has provided an excuse for Seoul to deploy THAAD,” the tabloid said in an editorial.

“Pyongyang blindly believes nuclear weapons are the greatest guarantee of its national security regardless that the reality is the opposite,” it said.China objects to the THAAD deployment, saying its territory is the target of the system’s far-reaching radar. South Korea and the United States have said the missile system is aimed only at curbing North Korean provocations.

The Yonhap news agency said the THAAD deployment could be completed in one or two months.

(Additional reporting by Daewoung Kim in SEOUL, Kaori Kaneko in TOKYO and Phil Stewart in WASHINGTON, Ben Blanchard in BEIJING; Writing by Jack Kim; Editing by Lincoln Feast)