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South Korea's cabinet offers to resign in face of massive street protests

Wednesday, 11 June 2008


SEOUL, June 10 (Reuters): South Korea's entire cabinet offered to resign Tuesday in the face of massive street protests, as its increasingly unpopular president warned that Asia's fourth-largest economy could be heading into crisis.

The protests against the government, in office barely three months, were sparked by public outcry over a deal to widen its market to US beef imports and have cast a darkening cloud over President Lee Myung-bak's plans for sweeping reform.

"The prime minister offered the cabinet's resignation at the regular meeting this morning (with Lee)," a spokeswoman at the prime minister's office said, in what local media said was in response to the mounting anti-government protests.

Local media have speculated the conservative former CEO will ditch his farm, health and education ministers, along with several aides, and possibly the foreign and finance ministers.

The April beef deal with the United States was meant to help a separate bilateral free trade accord that US congressional leaders threatened to block unless South Korea opened up its market to beef imports.

But widespread concern over mad-cow disease in US beef quickly turned the issue into a lightning rod for a broad range of grievances against Lee's government, driven by its left-leaning opponents and labor unions.

Protest organisers say up to 1 million people will rally later Tuesday around the country-at least a third of them in the capital-against Lee. Police have issued their highest alert ahead of the protests, which they expect to bring about 100,000 people onto the streets of Seoul.

Truck drivers, following the lead of unions in a number of countries across Asia and Europe, voted Monday to go on strike over rising fuel prices. They ignored the government's $10.2 billion financial aid package announced a day before and designed in part to cushion the impact of mounting energy costs.

The country's main KCTU trade union and four auto unions were voting on Tuesday whether to back a call for a general strike next week to protest against government policies.