South Korean opposition MPs said on Tuesday they would end a sit-in protest at parliament and pass a number of economic reforms the ruling party says are needed to help steer the country through the global financial crisis.

CNBC.com

The opposition has paralyzed parliament for about three weeks by occupying the main chamber and other facilities to physically block votes on scores of reform bills as well as a free trade pact with the United States.

"We expect our decision to lead to the normalization of parliament," Chung Se-kyun, leader of the opposition Democratic Party, told a news conference.

But Chung said he wanted a delay in voting on contentious bills such as the U.S. trade deal and a measure to revamp media ownership rules. His party was ready to pass dozens of non-controversial bills by the end of the current session on Thursday, he said.

The ruling Grand National Party (GNP), which has a solid majority in parliament, wants to quickly pass 85 reform measures, including sweeping tax cuts, easing bank ownership regulations and privatizing state-run firms.

"The Democratic Party's decision to clear away the main chamber and other meeting rooms should have been made earlier," the GNP said in a statement, without indicating if it was willing to accept the opposition's proposal.

Opposition legislators have said they want to block economic reforms they see benefiting big conglomerates and the rich. They also believe the U.S. trade deal will hurt farmers who will lose protection due to market-opening provisions.

But there has been growing public anger in South Korea at the parliament impasse as well as frustration among business leaders at the political obstacles to pushing through economic reforms.

Some analysts at banks, including UBS, have warned that South Korea's export-driven economy would probably shrink by as much as 3 percent in 2009.
     
U.S. Trade Deal Stuck

Chung said the opposition could vote on several dozen of the measures proposed by the GNP, without mentioning specific bills. It could allow voting on measures to help small- and medium-seized enterprises and start-up companies.

More From CNBC.com ...

• China Risks Riots as Crisis Bites, Asian Autos Skid
• Hyundai Rolls Out No-Cost Car Return Program
• Thain Strain? Merrill's Brokerage Chief Resigns
• Obama Urges Quick Action On Economic Stimulus Bill
• More Asia Pacific News

Studies have said the U.S. trade deal, struck in 2007 and yet to be approved by lawmakers in the United States either, would increase the $78 billion a year in two-way trade between the United States and South Korea by about $20 billion.

Analysts expect the vote on the deal in the U.S. Congress not to come for several months. The deal faces a rough ride in a new Congress that is seen as more protectionist.

U.S. President-elect Barack Obama has said parts of it need to be revised, especially the auto trade provisions.

President Lee Myung-bak of the GNP took office nearly a year ago, vowing to make the passage of economic reforms a priority.

Local media said Lee was considering a cabinet shake-up, and there has been speculation it could include economic-related portfolios. The presidential Blue House has denied any reshuffle was planned.

Tools:

Print Email