SOUTH KOREA: South Korea's embattled president, Lee Myung-bak, replaced all his top aides yesterday in a bid to make a fresh start after policy blunders sparked massive street protests against his four-month-old government.
In a widely expected shake-up of the presidential office, Lee sacked his chief of staff and six other senior secretaries who were largely academics and replaced them with seasoned bureaucrats and politicians.
The South Korean has gone from posting the biggest margin of victory in an open election in the country to becoming its least popular leader due partly to anger over his US beef import deal. He is also now expected to soon replace three or more cabinet ministers.
Political commentator Yu Chang-seon said Lee may have quieted public criticism with his apology to South Koreans on Thursday and the shake-up of his inner circle but street protests could again flare up.
"A lot will depend on how the final results of the beef talks turn out," Yu said. The talks' results could come today, officials said.
Shares in Seoul were lower yesterday, with investors more worried about inflation and the wavering won currency than changes on the political front. The benchmark Korea Composite Stock Price Index closed down 0.56 percent at 1,731.00 points.
The end of a truckers strike on Thursday that paralysed cargo transport at ports in the export-driven country eased some pressure on Lee, who has seen his pro-business economic reforms delayed while his support rate fell below 20 per cent.
The truckers' strike, along with a brief work stoppage by construction workers, cost South Korea more than $6.5 billion.
South Korea was once the third-largest importer of US beef until it banned the product in 2003 due to an outbreak of mad cow disease in the United States. US lawmakers have said they would not ratify a separate, sweeping free trade deal unless South Korea opened up its market to American beef.
Analysts said Lee will not be able to implement his reform plans that include privatisation of state assets and corporate tax cuts unless he can win back public support.
Lee also needs parliament, which is now controlled by his conservative Grand National Party, to open and consider his reform bills, but a boycott by the left-of-centre opposition angered by the beef deal has kept it shut.