SOUTH KOREA:SOUTH KOREA was thrown into political crisis yesterday after the cabinet offered to resign over an unpopular deal to allow US beef imports, which saw tens of thousands take to the streets to protest against President Lee Myung-bak.
Mr Lee was swept to power in a landslide win in December on an economic reform ticket, but the conservative leader's first 100 days in office have been tough and his approval rating has fallen by half since he took office in February, undermining his ability to win support for promised tax cuts and public works projects.
A bilateral trade decision to allow US beef into Korea has sparked fears of mad cow disease, and become a focal point for opposition from left-wing groups and trade unions.
The streets of Seoul were filled with protesters from all walks of life chanting "Lee Myung-bak go away". Organisers said 700,000 attended, police said 80,000 while local media put the number between 200,000 and 400,000.
Mr Lee, who promised to rebuild Asia's fourth largest economy, warned that surging commodity prices and slowing growth were pushing the economy towards its toughest patch in 10 years.
"Our economy is faced with a serious difficulty, with prices rising and the economy gradually slowing," he said in a speech to mark the 21st anniversary of pro-democracy protests that helped end years of autocratic rule in South Korea.
Many South Koreans are worried that US beef could carry mad cow disease and may be mislabelled or end up in cheaper food products without any labelling.
South Korea was forced to ratify the beef deal as it was part of a bilateral agreement, without which the country faced difficulties accessing the vital US market.
Truck drivers have gone on strike over rising fuel prices, while other unions are planning action, making it difficult for Mr Lee to deliver on his reform promises.
Adding to Mr Lee's woes, the new conservative-dominated parliament has been unable to sit because the opposition has boycotted its opening.
Local media have speculated that Mr Lee would take the opportunity to reshuffle the government later this week to try and shore up support for his flagging administration. There has been speculation that the former top businessman would get rid of his farm, health and education ministers, along with several aides, and possibly the foreign and finance ministers.
