FACTBOX-Risks for South Korea's troubled president
(For a related story, see KOREA-USA/BEEF, or click on [ID:nSP212539]
June 25 (Reuters) - South Korea will allow the resumption of U.S. beef imports starting Thursday, the ruling party said, implementing an unpopular deal that sparked protests and caused a crisis for the government as it tries to reform the economy.
The following are a few questions about the challenges facing President Lee Myung-bak, a former CEO who scored a landslide victory in a December election but who has now become the country's most unpopular new leader.
WHAT'S AT STAKE?
Lee wants to implement sweeping reforms that include: cutting corporate taxes, abolishing limits on big-company investment in other companies, privatising state-owned firms, mortgage-debt relief for low-income households and pension reforms.
A parliament where Lee's conservative Grand National Party (GNP) holds the majority has yet to convene due to a boycott by the left-of centre opposition over the beef deal.
WHAT CAN BE EXPECTED?
Lee will continue a shake-up of his government started last week, when he sacked most of his top aides, by replacing three or more cabinet ministers. Those expected to go are the farm, health and education ministers while the finance and foreign ministers might also be dismissed.
The cabinet reshuffle will not occur until the opposition ends its boycott and the National Assembly convenes. Surveys show two in three South Koreans are opposed to the boycott, which is putting pressure on the opposition MPs to get back to work and start considering some of Lee's less-contentious reforms.
Unpopular plans, such as a cross-country canal, are ditched.
WHAT ARE THE RISKS?
Lee cannot recover from damage inflicted in his first few months in office and fails to regain support. Groups in his faction-ridden GNP start to distance themselves from the unpopular leader.
Lee faces the possibility of ineffective leadership for his five-year term, but experts highly doubt he will heed calls for his ouster and resign.
WHAT HAPPENS TO THE U.S. TRADE DEAL?
The beef deal was supposed to help the passage of a separate, free trade deal with the United States, that polls said is supported by most South Koreans. Studies indicate the pact will increase the countries' $78 billion, two-way trade by $20 billion a year.
Analysts say the window is quickly closing for the approval of the deal by South Korean and U.S. lawmakers in the next few months, something the two governments had hoped for. Analysts expect the deal could be delayed until a new U.S. president takes office in January.
WHAT CAUSED ALL THE FUSS?
The beef import deal struck in April was widely slammed by South Koreans who felt it did not do enough to address their concerns about preventing products possibly tainted with mad cow disease from entering the country.
The protests against the beef deal grew into rallies against the Lee government, with many criticising Lee for being too focused on pushing through his own plans while paying little heed to the public and its concerns. (Reporting by Jon Herskovitz; editing by Jonathan Hopfner and David Fogarty)
June 25 (Reuters) - South Korea will allow the resumption of U.S. beef imports starting Thursday, the ruling party said, implementing an unpopular deal that sparked protests and caused a crisis for the government as it tries to reform the economy.
The following are a few questions about the challenges facing President Lee Myung-bak, a former CEO who scored a landslide victory in a December election but who has now become the country's most unpopular new leader.
WHAT'S AT STAKE?
Lee wants to implement sweeping reforms that include: cutting corporate taxes, abolishing limits on big-company investment in other companies, privatising state-owned firms, mortgage-debt relief for low-income households and pension reforms.
A parliament where Lee's conservative Grand National Party (GNP) holds the majority has yet to convene due to a boycott by the left-of centre opposition over the beef deal.
WHAT CAN BE EXPECTED?
Lee will continue a shake-up of his government started last week, when he sacked most of his top aides, by replacing three or more cabinet ministers. Those expected to go are the farm, health and education ministers while the finance and foreign ministers might also be dismissed.
The cabinet reshuffle will not occur until the opposition ends its boycott and the National Assembly convenes. Surveys show two in three South Koreans are opposed to the boycott, which is putting pressure on the opposition MPs to get back to work and start considering some of Lee's less-contentious reforms.
Unpopular plans, such as a cross-country canal, are ditched.
WHAT ARE THE RISKS?
Lee cannot recover from damage inflicted in his first few months in office and fails to regain support. Groups in his faction-ridden GNP start to distance themselves from the unpopular leader.
Lee faces the possibility of ineffective leadership for his five-year term, but experts highly doubt he will heed calls for his ouster and resign.
WHAT HAPPENS TO THE U.S. TRADE DEAL?
The beef deal was supposed to help the passage of a separate, free trade deal with the United States, that polls said is supported by most South Koreans. Studies indicate the pact will increase the countries' $78 billion, two-way trade by $20 billion a year.
Analysts say the window is quickly closing for the approval of the deal by South Korean and U.S. lawmakers in the next few months, something the two governments had hoped for. Analysts expect the deal could be delayed until a new U.S. president takes office in January.
WHAT CAUSED ALL THE FUSS?
The beef import deal struck in April was widely slammed by South Koreans who felt it did not do enough to address their concerns about preventing products possibly tainted with mad cow disease from entering the country.
The protests against the beef deal grew into rallies against the Lee government, with many criticising Lee for being too focused on pushing through his own plans while paying little heed to the public and its concerns. (Reporting by Jon Herskovitz; editing by Jonathan Hopfner and David Fogarty)
© Thomson Reuters 2009 All rights reserved
Sotomayor pledges impartial justice
