A rare meeting of North Korea's ruling party seen as paving the way for an eventual leadership succession is drawing near, Pyongyang's official media said Tuesday without giving a date.

The secretive North has never announced the start date for the communist party conference, its most important political gathering for 30 years, although many experts had expected it to begin last week.

The "historic conference of party representatives and the 65th anniversary of the party's foundation are drawing near," party newspaper Rodong Sinmun said Tuesday, referring to an October 10 anniversary.

At such a time, party members, soldiers and people "are realising more deeply than ever the greatness of the Dear General (leader Kim Jong-Il) who developed the party into the most prestigious and invincible party".

The meeting will be closely watched for leadership and policy changes and above all for signs that Kim, 68, is preparing the ground for a hereditary power transfer to his youngest son Jong-Un.

The North's official news agency, announcing the meeting in June, said it would convene early in September to elect the party's "highest leading body".

South Korea's spy chief Won Sei-Hoon told parliament's intelligence committee Monday the meeting is likely to start this week.

Japan's Yomiuri Shimbun said it could begin as early as Wednesday.

"Delegates from districts had gathered in Pyongyang by Monday. They have finished their registration and are on standby," the newspaper quoted a source as saying.

The source denied speculation the conference had been delayed because of Kim's poor health or a regime power struggle, saying it was partly due to widespread flooding last month.

Kim, who appears to have visibly aged since a stroke in August 2008, paid a five-day visit to key ally China late last month and met President Hu Jintao.

According to media reports, Won told the closed parliamentary hearing that Kim has won China's support for a second father-to-son succession in the impoverished state.

The National Intelligence Service (NIS) director also reportedly said Kim might have taken Jong-Un on the secretive trip.

Chosun Ilbo newspaper quoted lawmakers at the meeting as the source of Won's comments. Yonhap news agency carried a similar report.

"In terms of securing aid, Kim's visit to China was not so successful. However, it was a considerable achievement that he got the succession plan recognised (by China)," Yonhap quoted Won as saying.

Asked whether the NIS believed Kim had been accompanied by his son, Won said: "Isn't it possible to see it like that, judging from the places he visited?"

Kim and his entourage made a pilgrimage to places in northeastern China linked to his own father and North Korea's founder Kim Il-Sung, who led a band of anti-Japanese guerrillas.

The visits were seen as a bid to confer legitimacy on another dynastic succession.

South Korea's Kia halts exports to Iran
Seoul (AFP) Sept 14, 2010 - South Korea's Kia Motors, whose Pride model is ubiquitous on Iranian roads, said Tuesday it had suspended exports to the Islamic state partly in response to Seoul's nuclear-related sanctions.

"South Korean government sanctions... were part of the decision," Kia spokesman Michael Choo told AFP, declining to comment further.

Kia's Pride, a small hatchback, accounts for 30-40 percent of all vehicles on Iran's roads, according to the company. The firm last year exported 4,210 complete vehicles to Iran and 17,040 cars in kit form for local assembly.

Kia suspended all exports to Iran last month, including completed vehicles, kits and spare parts -- before South Korea's government announced its detailed measures but after it announced its intention to impose sanctions.

According to a survey issued Sunday, more than three-quarters of South Korea's small and mid-size exporters have partly or totally discontinued shipments to Iran following Seoul's sanctions.

The survey of 88 smaller exporters conducted by the Small and Medium Business Administration showed 28 percent had halted exports. Another 48 percent said they had partially suspended shipments.

The cut-off was due to fears they would be unable to receive payments for shipments.

South Korea last week announced its package of sanctions over Iran's suspected nuclear weapons programme, in line with US-backed United Nations action.

The finance ministry said it would impose a "severe" penalty on the Seoul branch of Bank Mellat for violating laws on foreign exchange transactions. It did not elaborate but Yonhap news agency said the Iranian bank would likely face a two-month suspension.

The measures included blacklisting 24 individuals and 102 Iranian entities, including 14 other banks, as well as the strengthening of inspections of cargoes related to Iran.

There were also restrictions on new investment in Iran's oil and gas industry, but no ban on oil imports, which provide 10 percent of South Korea's needs.

Transactions with Iranian entities not subject to sanctions will require approval from Seoul if they exceed 40,000 euros (51,000 dollars).

South Korea also said it would reduce export guarantees for shipments to Iran. Trade between the two countries was worth 9.74 billion dollars last year.

In July, South Korea's GS Engineering and Construction announced that a 1.42 trillion won (1.2 billion dollar) gas plant project in Iran had been cancelled by the Iranian side due to the UN sanctions.

Kia, with its larger partner Hyundai Motor, forms the world's fifth largest automaking group.

Kia's second-quarter net profit this year soared 61 percent year-on-year thanks to strong sales in domestic and overseas markets. It makes cars in the United States, Slovakia and China as well as South Korea.