PRIME MINISTER UNDER PRESSURE TO RESIGN

C O N F I D E N T I A L SEOUL 000802

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/13/2016
TAGS: PGOV KS
SUBJECT: PRIME MINISTER UNDER PRESSURE TO RESIGN


Classified By: POL M/C Joseph Y. Yun. Reasons 1.4 (b.d).


1. (C) SUMMARY: PM Lee Hae-chan in facing mounting pressure
to resign after revelations that he skipped ceremonies
marking Independence Movement Day (March 1) in favor of
playing golf with businessmen of dubious provenance. Chances
that Lee will be able to weather the storm appear to be
declining as consistencies emerge about who played golf, who
paid for what, and why. Moreover, there appears to have been
a resurgence over the weekend of voices within the Uri Party
calling for Lee to step down. President Roh has said he
intends to decide PM Lee's fate upon his (Roh's) return March
14 from a nine-day trip to Africa. A Blue House aide told us
that Roh is reluctant to fire one of his closest political
and personal confidants because of his "inappropriate golf."
However, with the May 31 regional elections looming, Roh may
have no choice but bend to public opinion. END SUMMARY.


2. (U) PM Lee Hae-chan's troubles began two weeks ago during
a heated interpellation session at the National Assembly,
when an opposition lawmaker attacked the PM for choosing golf
over attending memorial ceremonies on March 1, which marks
the anniversary of the birth in 1919 of the Korean movement
for independence from Japan. March 1 this year had also
featured a massive railroad strike that crippled the nation's
transportation, leading the Grand National Party (GNP) to
accuse the PM of taking to the greens at time of national
crisis. Lee had responded with characteristic contempt for
the GNP, dismissing the line of questioning as "nonsense."
The PM's response was met with widespread disapproval by the
public and rage by the conservative media, with whom Lee has
always had a testy relationship.


3. (U) Chastened by overwhelmingly unfavorable public
opinion, PM Lee that weekend issued his first apology for the
lapse in his judgment. He noted that he intended to discuss
his future with President Roh after the latter concluded his
March 6-14 visit to Africa. The opposition immediately
seized upon that statement as a de facto offer to resign and
urged the president to accept it immediately. The ruling Uri
Party's leaders noted only that the PM's apology was
appropriate, a reaction that some analysts saw as tepid
support for PM Lee.


4. (C) The Blue House's initial public reaction was to
reiterate that Roh would review the situation upon his
return. Privately, it moved to tamp down dissension in the
Uri Party and otherwise circle the wagons around Lee. A
senior Blue House aide told us March 7 that President Roh was
opposed in principle to the notion of firing a Cabinet
minister, much less the PM, for playing golf on March 1.
Roh's hope was that the controversy would have blown over
during the nearly ten days that he would be abroad.


5. (C) Instead of blowing over, however, the golf scandal
snowballed rapidly, as reports emerged that PM Lee had not
only played golf on an inappropriate day, but that he had
done so with questionable partners, including at least one
businessman with a criminal record. That player, Rhyu
Won-ki, was also found to be currently under investigation
for price fixing. Suspicion intensified further as the PM's
Office, the golf club involved, and various players offered
differing and contradictory accounts of who had played, who
had paid for what, and whether Rhyu had attempted to lobby
the PM for help with his current predicament. Finally,
reports over the weekend showed that, contrary to PM Lee's
previous statements, the group had in fact wagered a total of
around USD 400 during the game (although the PM was reported
to have given all his earnings to the caddie).


6. (C) COMMENT: PM Lee responded to this latest revelation
by issuing his fourth apology March 13. That apology,
however, appears to have done little to assuage public
outrage or, perhaps more importantly, prevent a resurgence of
grumbling within the Uri Party. Faced with, at best, an
uphill battle in the May 31 regional elections, the Uri Party
may try to prevail upon President Roh to sacrifice PM Lee
Hae-chan for the party's sake. Although Roh's record
suggests that he is willing to defy the public and his party
in favor of a loyal ally, to do so this time could risk
straining his relationship with his party to the breaking
point. END COMMENT.
VERSHBOW