KeSPA and Blizzard to break talks
Mike Morhaime recently stated in an interview with Yonhap News that after three years of talks with KeSPA they have made no progress in having KeSPA recognize their intellectual property (IP) rights.
Blizzard believes that their IP rights should be respected, but KeSPA is not doing so and Blizzard has had no success in getting KeSPA to do so. With StarCraft II's release looming, Blizzard has decided to look for a new partner.
There is no specific mention of whether the negotiations on Broodwar will also stop. With Blizzard aiming to find a new partner the relations between Blizzard and KeSPA can be strained and cause talks over Broodwar to be even more difficult.
A previous South Korean partner that Blizzard has worked with is the corporation behind GOMTV, Gretech Corporation.
TeamLiquid.net - Source
Yonhap News - Source (Korean)