PRIME MINISTER OFFERS RESIGNATION

C O N F I D E N T I A L SEOUL 000822 SIPDIS SIPDIS E.O. 12958: DECL: 03/14/2016 TAGS: PGOV KS SUBJECT: PRIME MINISTER OFFERS RESIGNATION REF: SEOUL 802 Classified By: POL M/C Joseph Y. Yun. Reasons 1.4 (b/d). ¶1. (SBU) Following clear signs that the ruling Uri Party believed PM Lee Hae-chan should step down, President Roh has indicated that he will accept Lee's resignation. In a meeting shortly after Roh's return to Seoul March 14 from an overseas trip, Lee offered his resignation "without reservation or resentment" to take responsibility for his "inappropriate golf" (see REFTEL). The Uri Party announced that, in a subsequent meeting with party leader Chung Dong-young, Roh had said he would "respect the will of the party." That statement effectively telegraphs Roh's decision, but is still short of a formal acceptance of Lee's resignation. ¶2. (C) No clear front-runners have emerged to replace Lee, and we are also hearing reports that Roh might opt to install an interim PM, with a permanent replacement to be named after May 31. Delaying the nomination would defer a potentially bruising confirmation hearing until after the crucial May 31 regional elections. ¶3. (C) COMMENT: The ruling Uri Party's decision to abandon Lee Hae-chan appears to have tipped the balance against the PM. The party was reportedly convinced to act after a weekend poll showed that 60 percent of the public wanted Lee to resign, that negative numbers were going up, and that keeping Lee would create further drag on the Uri Party in the run-up to the regional elections. Still, although Lee's departure brings an end to the "inappropriate golf" scandal, it is doubtful that Uri's prospects in May will have markedly benefited from the resignation. END COMMENT. VERSHBOW