Unions on the warpath as Seoul faces its first big crisis after the IMF bail-out

THE economic reforms forced on South Korea are expected to generate their first big confrontation today, as trade unionists threaten to bring 100,000 members out on strike. Thousands of riot police mobilised in Seoul, and the stock market sank as the Korean Confederation of Trade Unions (KCTU) announced a strike among employees of some of the biggest companies. The Prosecutor-General's office issued a statement saying that the strike was illegal, and that strikers would be punished. Police pre-emptively sealed off a Catholic cathedral in central Seoul, a traditional place of sanctuary for strike leaders.

After the collapse of its currency at the end of last year, South Korea was saved by the International Monetary Fund with a record bail-out plan worth some $58bn. The money is to be provided on condition that the government pushes through drastic reforms of the country's closed and regulated economic system, including legislation promoting "flexibility" - the right of companies to lay off workers more easily.

An agreement reached with the government last week has been rejected by the KCTU, which predicts that 100,000 workers will join the strike in 67 offices and factories, including the huge Hyundai and Daewoo car plants.

After similar legislation was forced through parliament, Seoul was hit by a series of violent demonstrations and strikes which forced the government of President Kim Young Sam to step down just over a year ago. Today, the situation is very different, with a new president, Kim Dae Jung, soon to be inaugurated, and a growing acceptance that harsh measures are needed to see South Korea through its crisis.

At present redundancies can only be forced through with the agreement of a union or with permission from a court. Last week's agreement, which was to have passed into law in next month's National Assembly, was to have removed this protection, in return for greater union freedom. But on Monday the union leaders who negotiated the deal were overruled and sacked by their members, who complained that workers were being asked to bear a disproportionate sacrifice compared to the big conglomerates, or chaebol.

"This is not a fair agreement at all," said a KCTU statement. "While demanding only superficial reform of the conglomerates, it imposes all the pain on the workers."