World Notes SOUTH KOREA

With the Seoul Olympics only two months away, the nightmarish specter of a North Korean terrorist attack at the Games haunts South Korean officials. Thus South Korean President Roh Tae Woo proposed a dramatic improvement in North- South relations. He called for moves ranging from a resumption of mail service between the two Koreas to the reunion of families divided by the border.

Pyongyang last week denounced the offer as "nothing new" and repeated its own demand for a North-South conference on reunification. Seoul, which has condemned such a gathering as "unrealistic" and "impractical," said it will nonetheless continue to seek increased trade and diplomatic ties with the North and help Pyongyang join international organizations. In a further display of goodwill, South Korea halted daily propaganda broadcasts to the North at least until after the Olympics.