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Across Asia: South Korea

China Daily | Updated: 2010-02-02 07:51

Capital dispute still festers

A dispute over a proposal to move parts of South Korea's capital is likely to hinder parliamentary passage of economic reforms and a trade deal with the US at a new session that opened yesterday.

President Lee Myung-bak's decision to scrap a plan to shift a large part of the government from Seoul to a new city, Sejong, 150 km to the south, has angered the left-leaning opposition and caused rifts in his conservative ruling party.

The issue is likely to dominate the 30-day session despite the ruling Grand National Party's aim to pass tax cuts, adopt fresh labor reforms and ratify the trade pact with the United States clinched nearly three years ago.

(China Daily 02/02/2010 page11)

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