POLITICAL POSTURING TO DOMINATE ASSEMBLY APRIL

UNCLAS SEOUL 001090

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV KS
SUBJECT: POLITICAL POSTURING TO DOMINATE ASSEMBLY APRIL
SESSION


1. (SBU) SUMMARY: The National Assembly on April 3 began a
thirty-day session that will likely be dominated by political
posturing prior to the May 31 nationwide local elections.
Issues on the agenda include the confirmation of Rep. Han
Myeong-sook as the first female Prime Minister, scandals
involving improper lobbying, and a series of reform bills
covering labor, defense and education. END SUMMARY.

CONFIRMATION BATTLE OVER ROK'S FIRST FEMALE PM
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2. (SBU) One of the biggest items on the agenda is the
confirmation hearing of Uri Party Rep. Han Myeong-sook as
Prime Minister. Han has a long history of women's rights
activism. Former President Kim Dae-jung appointed her in
2001 to be the first Minister of Gender Equality, and
President Roh later appointed her to be Minister of the
Environment. Han resigned in 2004 to launch a successful
candidacy for a National Assembly seat. Insisting on a
politically-neutral Prime Minister, the opposition Grand
National Party (GNP) has objected to Han's close political
affiliation with the Uri Party and has demanded that she
renounce her party ties. The GNP, however, is unlikely to
press the attack on Han too aggressively because of ongoing
embarrassment over GNP Rep. Choi Yeon-hee, who has refused to
step down following a February incident where he grabbed a
female reporter's breasts during a drinking session. Facing
allegations that it tolerates sexual harassment, the GNP does
not want to be seen fighting the appointment of Korea's first
female Prime Minister. The confirmation hearing will be
before a committee of six Uri Party representatives, six GNP
representatives, and one other representative, and the
confirmation will have to be approved by a majority of the
Assembly.

PARTIES TRADE SCANDAL ACCUSATIONS
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3. (SBU) Given GNP's vulnerabilities on challenging Han,
most of the political posturing will involve two scandals
which seem to be gaining momentum as the May 31 local
elections approach. Prosecutors in March raided Hyundai
Motor Co. and its subsidiaries in search of evidence that
prominent financier and lobbyist Kim Jae-rok improperly
received and used funds to lobby the government and financial
authorities. Various politicians are eager to take advantage
of what the investigation may uncover. Several of the
suspect incidents, including the sudden issuance of a
construction permit to Hyundai Motors in a part of Seoul
previously off-limits to that type of construction, occurred
under the administration of Mayor Lee Myung-bak, a leading
GNP contender for the presidency. In addition, lobbyist Kim
reportedly has close ties with a number of ranking Uri Party
figures.


4. (SBU) The Uri Party is likely to try to turn an
investigation regarding likely presidential candidate and
Seoul Mayor Lee Myeong-bak's allegedly improper use of a
public tennis court. Investigators are pursuing allegations
that since 2003, the Seoul Tennis Council had booked a public
tennis court for Lee's exclusive use in exchange for
management rights over a southern Seoul tennis court
scheduled to open this year. The Korean Athletic Promotion
Association (KAPA),which runs the facility, claims that
these bookings resulted in about USD 37,000 in unpaid rental
charges. The Uri Party has formed a unit to investigate the
matter, the Democratic Labor Party has released a statement
criticizing the mayor, and the People's Solidarity for
Participatory Democracy, an NGO, has requested the Korea
Independent Commission Against Corruption to investigate.
Lee's tennis problems are undoubtedly a reaction to former
Prime Minister Lee Hae-chan's resignation over an improper
golf outing in March..

BRAWL LIKELY OVER LABOR REFORM
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5. (SBU) Labor reform is likely to arise as a contentious
issue as well. The National Assembly Environment and Labor
Committee on February 28 approved long-pending labor reform
legislation regarding temporary, part-time, contract, and
other "irregular" workers. The legislation would prohibit
discrimination against irregular workers and grant them
regular worker benefits -- including termination protections
-- after two consecutive years of employment. Hoping to win
labor's support, the Committee revised the government's
proposal, which provided for a three-year term of irregular
employment. Nevertheless, the Committee's approval of the
bill triggered large protests from organized labor and
contributed to a strike in the transportation sector over the

weekend. Employers, likewise, strongly opposed the
legislation as a setback to the goal of labor market
flexibility. In light of this opposition from both labor and
management, the National Assembly postponed further
consideration of the reform legislation until this session.
We understand that members of the Democratic Labor Party have
already occupied the Judiciary Committee meeting room in the
National Assembly in order physically to block further
discussion of this bill. After all the pushing and shoving
is done, we expect that lawmakers may delay a final vote even
further.


DEFENSE AND EDUCATION REFORM MEASURES ALSO PENDING
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6. (SBU) The Ministry of National Defense's defense reform
bill is aimed at (1) civilianization of the Defense Ministry
and other defense agencies; (2) force restructuring and
modernization; (3) streamlining the defense management
system, including creation of a low-cost, high efficiency
defense procurement agency; and (4) improving the quality of
life for soldiers. The bill was first introduced last fall
and is likely to generate continued controversy. Some
legislators have criticized the plan for insufficient
funding, poor planning, and possible vulnerability against
the DPRK.


7. (SBU) The Private School Reform Law, which prompted a
fifty-three day GNP boycott of the last National Assembly
session, is expected to generate controversy again as
lawmakers negotiate revision of the law. Simply put, the GNP
opposes government oversight of private schools, in
particular the open board of directors system which lets the
school community nominate one-fourth of board membership.




YUN