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    Korea
     Mar 1, 2006
South Korea's fractious path ahead
By Bruce Klingner

The South Korean political system will remain divided throughout 2006 between warring progressives and conservatives, impeding Seoul's ability to implement policies to address foreign investor concerns and regional security challenges.

Questions remain over South Korea's economic policy, with business advocates calling on Seoul to reduce inhibiting regulations, overcome bureaucratic resistance to marketization and articulate its strategy toward foreign investment. Seoul's relations with the US and Japan will remain strained and the 



country has yet to achieve national consensus on the future form of South Korean society and its role in northeast Asia. President Roh Moo-hyun's political influence is declining, brought on in part by his abrogating some powers early in his presidency,which has increased the relative power of the National Assembly. As the legislature becomes a more co-equal branch of government, it will increasingly be able to constrain the president. Yet, the legislature will remain largely deadlocked by partisanship. Political differences will become even greater as the parties strive to distinguish themselves to an increasingly apathetic electorate during the run-up to the nationwide local elections in May and the December 2007 presidential election.

Neither the ruling Uri Party nor main opposition Grand National Party (GNP) will gain the support of a majority of the legislature or electorate. Moreover, the Uri Party is likely to split after the May elections due to growing internal factionalism. As a result, government policies will continue to be reactive and inconsistent, and partisan confrontation will substitute for political dialogue.

Politics will dominate debate over controversial issues such as tax increases, trade negotiations, regional development, foreign relations and inter-Korean engagement. While the national economic recovery is gaining sufficient momentum to be less sensitive to short-term political fluctuations, it will remain susceptible to business concerns over legislative gridlock and political volatility.

Uri Party beset by infighting
The Uri Party will continue to suffer from Roh's low approval ratings as well as continued infighting between its two diametrically opposed factions. The party, born in 2003 as a result of a schism with its parent Millennium Democratic Party (MDP), has always been a tenuous confederation of "progressives" (or reform ideologues) who advocate extensive societal reform and "pragmatists" (or fundamentalists) who promote mainstream liberal policies.

The party's resounding defeat in the past two by-elections - it failed to win a single seat - has exacerbated party factionalism and prompted a struggle over the direction of the party. Overlaid on this long-running debate have been post-election battles between pro and anti-Roh factions.

Ruling party combative toward the president
The Uri Party will increasingly blame its low public support on Roh's failure to address public concerns over the economy. Polls have consistently shown that more than 80% of respondents want Roh to focus on economic recovery rather than his dogged pursuit of political and social reforms.

Uri Party members were further alienated by the president's proposal to form a "grand coalition" with the GNP and his appointment of controversial legislator Rhyu Si-min as health and welfare minister in defiance of party entreaties. As a result, members will more openly defy the president in an attempt to distance the party in the run-up to the May 31 elections.

Feuding among the presidential Blue House, government and party will increase, aggravating an already strained policy coordination process, further reducing Roh's influence. A Blue House official characterized the situation as similar to the volatility that existed within the MDP prior to the 2003 rupture, which led lawmakers to secede and form the Uri Party.

Leadership cannot counter factionalism
Despite the January return of former minister of unification, Chung Dong-young, and former minister of health and welfare, Kim Geun-tae, to the Uri Party and Chung's victory as party chairman, the Uri leadership - the seventh in two years - will have difficulty preventing a formal party split.

Political parties in South Korea are fragile and transitory, having an average life expectancy of only three years. They generally are regionally based coalitions of often competing interests formed around charismatic leaders. As such, they have lacked a distinctive party platform and lawmakers have switched party allegiances to improve their re-election potential.

The embrace of conservatism
Despite Roh's and the Uri Party's difficulties, the GNP will be unable to provide a viable policy alternative. Although the GNP's surging approval ratings after the by-elections provided a strong boost to GNP chairwoman, Park Geun-hye, and her 2007 presidential candidacy, they reflect an electorate rebuff to Roh rather than a shift toward the GNP.

The party has largely adopted an "anti-Roh" strategy without presenting a comprehensive alternative vision. Park will likely overplay her hand, misinterpreting the elections as a vindication of her conservative policy and party stewardship. She will be emboldened to continue her partisan attacks on Roh, but her vitriolic criticism and the GNP's boycott of the National Assembly over a school bill aimed at forcing private schools to open their management boards to parent and teacher representatives risk alienating the electorate.

Near-term tactics
The GNP will continue to dwell on political skirmishes rather than articulate its strategies for ensuring economic growth, attracting foreign and domestic investment, resolving labor disputes and expanding the social safety net.

The January 11 defeat of Park's choice for GNP floor leader by the favorite of Seoul Mayor Lee Myung-bak - also her GNP opponent for the presidency - may reflect the beginning of a decline in her control of the party.

Moreover, Park has been unable to bridge the gap between older conservatives and younger moderates. Several younger reformist GNP lawmakers have openly challenged Park over her leadership, claiming she has failed to reach out to voters in their 20s and 30s nor sought to expand the GNP's powerbase beyond its traditional Taegu-Kyongsang (provinces in the southeast of the country) stronghold.

This faction has called for greater influence by younger members and criticized Park's economic policies, including her advocacy of tax cuts. The party remains divided but it is not likely to split.

Looking right
The GNP will attempt to broaden its appeal to the populace by gaining support from the "New Right", a nascent but growing political movement. The New Right originated as an amorphous coalition of academics, religious leaders and civic group members that espouse a theory of "rational conservatism".

This group rejects both the liberalism of the Roh administration and the traditional conservative camp, which is inexorably linked in the public's mind to the corrupt practices of South Korea's authoritarian regimes.

Although members of this group are predominantly in their 30s and 40s, it rejects the progressive philosophy of the "386 generation" (those in their 30s, educated in the 1980s and born in the 1960s). In many ways, however, the New Right is less a case of what it stands for than what it stands against, namely Roh and his attempt to transform South Korea into more egalitarian society.

Lack of cohesion
Although the GNP will continue to woo the New Right, the movement will not be a significant factor in the 2006 elections. While the New Right will see GNP entreaties as a vindication of its vision, it runs the risk of undermining its own credibility as an alternative to traditional conservative elites. The New Right will continue to struggle in 2006 with internecine debates over whether to continue as an independent ideological movement influencing the GNP or to form a separate centrist coalition of moderate liberals and conservatives.

If the New Right were to evolve into a more tangible political movement, it would represent an appealing conservative alternative to the GNP in the 2007 presidential election.

New political party
The formation of a new political party in October is further dividing the political system. Chungchong province governor Shim Dae-pyeong created the People's First Party (PFP) to resurrect the political influence of the country's central region and serve as a counter to the Uri Party, based in the southwestern Cholla provinces, and the GNP, rooted in the southeastern Kyongsan provinces.

The PFP will most directly impact the Uri Party, which beat the GNP in Chungchong during the 2004 national legislative elections. Regional support for the Uri Party has declined following Roh's failure to deliver on his campaign promise to move the national capital to Chungchong province from Seoul.

Although the PFP is unlikely to win many legislative seats, it will serve as a powerbroker since both the Uri and GNP are dependent on other parties to pass legislation. The PFP would augment its influence by forming a coalition with other minority opposition parties such as the Cholla-based Democratic Party (DP).

Jockeying for election advantage
Political parties are already focusing their attention on the May elections, which will be the key political event for 2006. Although no National Assembly seats are at stake, the election will have a major impact because 3,800 local government positions, including mayors and provincial governors, will be selected. These elections will determine the actual strengths of the parties throughout the country and, more importantly, serve as a litmus test of the electoral views on the president and parties. This, in turn, will have an indirect but strong impact on this year's National Assembly agenda.

Regionalism will continue
Political regionalism will remain a dominant factor in South Korean politics, despite the efforts of Roh and the political parties to reduce its significance. Political parties' support is based largely on core regional constituencies. During the 2002 presidential election, ideology appeared to trump regionalism because the Cholla region voted for Roh despite his being from the rival Taegu-Kyongsan region.

Had this trend continued, it would have marked a further maturation of the political system. Subsequent elections, however, indicate regionalism will retain a significant sway over the electorate.

GNP likely to win local elections
The GNP is expected to handily win the majority of seats in the local elections. The party currently holds 13 of the provincial and major city leadership positions and 139 heads of smaller cities and counties while the Uri Party holds two and 34, respectively.

Moreover, a December poll in the Korea Times showed 46% of respondents indicated they would vote for the GNP while only 20% would vote for Uri candidates. The expected strong showing by the GNP will intensify political disputes with the Uri Party and further stalemate the legislative process. An emboldened GNP will be even more obstructionist to Uri Party initiatives but, since no National Assembly seats will change, will be unable to gain approval for its own policies.

Impact on presidential race
The Uri Party's expected election loss will likely trigger a formal party split with an anti-Roh faction seeking an alliance with the DP and/or the PFP, creating a strong Cholla and Chungchong-based party. DP chairman Hahn Hwa-kap rejected any potential coalition with the Uri Party as long as Roh remains affiliated with it, increasingly the likelihood of an anti-Roh split if the president does not leave.

Roh was the MDP's presidential nominee in 2002 but left the party, along with 40 other lawmakers, after he won the election. Roh's supporters within the Uri Party have argued against a Uri-DP alliance, seeing it as a rejection of the president's efforts to overcome regionalism. The diminished Uri Party would face a further degradation of its political and legislative influence and be even more vulnerable to GNP obstructionist tactics. The party would also have a weakened power base for the presidential election.

Although the presidential election is still nearly two years away, it is already casting a long shadow over South Korean politics as the parties begin to position themselves behind the presidential candidates. The leading contenders - colloquially referred to as the "six dragons" - are Chung and Kim of the Uri Party; Park, Lee and Kyonggi province governor Sohn Kah-kyu of the GNP; and former prime minister Goh Kun, currently not affiliated with a party.

An additional "dark horse" candidate is current Prime Minister Lee Hae-chan, who some speculate could be a late entry to the field. Each of the candidates holds sway over a political faction and the parties will remain largely stymied from pursuing new initiatives until the party contender is chosen.

A new alliance
A Uri faction-DP-PFP group would likely form the power base for the presidential campaign of Goh who has participated in PFP events. Goh has consistently outpaced all Uri Party and GNP presidential candidates in polls, though his lead has declined in recent surveys.

The Uri Party will designate party chairman Chung as its presidential candidate. This will set the stage for a three-way presidential battle between Goh, Chung and the GNP candidate who would likely be Lee. Lee's popularity has soared since the completion of the Cheonggyecheon stream project in Seoul, in some polls even surpassing Goh's ratings.

If Park were to support Lee, it would make for a powerful and potentially unstoppable candidacy. Of these three candidates, Chung would have the weakest regional and political base and be the least likely to win the election. His decision to return to the Uri Party may have been a mistake since he will be held responsible for the expected Uri losses during the May elections. Goh and Lee remain locked in a dead-heat as the two most viable front-runners.

Experience over ideology
Predominant presidential campaign themes are already emerging, with the candidates emphasizing their experience and ability to achieve goals and a convergence of political parties to the middle.
The electorate is more skeptical of ideologically driven anti-Americanism and will seek a candidate providing a viable strategy for improving the economy. It is unlikely that there will be a recurrence of the strident anti-American protests of the 2002 presidential campaign, though all candidates will pursue - to varying degrees - policies that are more independent of US priorities.

On a reassuring note for the business community and foreign investors, the candidates seen as the most progressive - Kim and Chung - have the least public support.

Politics will remain mercurial
The political landscape will remain unpredictable since there has been no groundswell of support for any party, with the electorate evenly divided between support for Uri, GNP and "none of the above".

A similar situation exists for the presidential candidates, a December poll in the Korea Times showed the electorate evenly divided behind Lee (23%), Goh (22%), Park (19%) and "no comment" (19%). As such, the political landscape remains volatile with a large segment of the public potentially able to unexpectedly shift its allegiance.

Bruce Klingner is the Korea analyst for Eurasia Group, the world's largest political risk consultancy. The views expressed herein are his own. His areas of expertise are national security, political, military and economic affairs in Korea, China and Japan. He can be reached at klingner@eurasiagroup.net

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