Lee vows to gain Assembly approval of KORUS FTA by year's end

By Yoo Cheong-mo
SEOUL, Oct. 31 (Yonhap) -- President Lee Myung-bak said on Friday that his
government and the ruling Grand National Party are determined to finalize
parliamentary approval of the long-overdue Korea-U.S. free trade agreement (KORUS
FTA) by year's end, regardless of a reciprocal move by the U.S. side.
Meeting with key participants of the annual conference of the Korea-U.S. Business
Council, Lee said his government will drastically change the nation's contentious
labor-management relations and implement sweeping deregulation in order to make
South Korea more attractive to potential foreign investors.
"The nation's labor sector problems will now undergo considerable changes. The
government will be ready to crack down on irregular and illicit labor actions,"
the president was quoted by his spokesman as saying.
"The deregulatory drive will pick up the pace. We're now facing difficult times,
but will work harder to improve our investment environment for foreign
investors," Lee said at the meeting held at the presidential office, Cheong Wa
Dae.
With regard to the deadlocked KORUS FTA, Lee reiterated his bid to persuade the
National Assembly to approve the deal by the end of this year.
"Regardless of when the U.S. Congress ratifies the KORUS FTA, we'll push to
ensure that the South Korean parliament okays the deal within this year. The
ruling party will actively push for that," said Lee.
In response, William Rhodes, chairman of Citibank, forecast that whether Democrat
Barack Obama or Republican John McCain wins the upcoming U.S. presidential
election, the new president will surely back the KORUS FTA.
Rhodes was also quoted as saying that U.S. Congressional leaders generally share
the view that there is no alternative to the KORUS FTA in terms of both strategic
bilateral relations and economic interests.
Rhodes is known for having played a key role in the US$30 billion currency swap
deal signed between Seoul and Washington.
With that in mind, President Lee personally thanked the Citibank chairman for his
efforts in the Korea-U.S. currency swap deal during the Cheong Wa Dae meeting.
"We're still in need of help from our American friends to ensure that the global
financial crisis will pave the way for South Korea to take a gigantic leap
forward. The remaining task for us is how to quickly and sufficiently release
liquidity into the market and restore the confidence of investors," said Lee.
Seoul and Washington concluded their free trade deal in June last year, but it
has yet to obtain approval from the countries' respective legislative bodies. Lee
and U.S. President George W. Bush have agreed to ratify the FTA deal by the end
of this year, but the outlook remains murky.
The KORUS FTA also featured prominently at the 21st annual conference of the
Korea-U.S. Business Council, which was held at a Seoul hotel on Thursday and
Friday, according to executives of both sides.
ycm@yna.co.kr
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