by Theresa Kim Hwa-young

The economic accord with Washington is seen as a threat to farmers and small businesses. Meanwhile, Seoul’s economy ministry is warning against investing in Vietnam.

Seoul (AsiaNews) – A group of reformist South Korean lawmakers yesterday urged the government to suspend negotiations for a free trade pact with the United States and threatened to vote against the ratification of any such pact. The matter is currently being discussed at presidential cabinet level.

"The South Korean government is ready to make hasty decisions, but we are ready to fight and reject the ratification of the FTA," said 32 lawmakers, mostly from the ruling Uri Party, in a joint news conference.

"President Roh said South Korea and the US should work toward reaching a balanced agreement that benefits both countries. But so far, there are no signs of an equal accord being struck."

The lawmakers were echoing discontent recently voiced by farmers and small firms. They fear an accord with the US would threaten their livelihoods given the sharp competitiveness of American products that – as per the accords being debated – would have free access to the Korean market.

Meanwhile, a committee of Seoul’s economy ministry and a good number of private industries have warned Korean businessmen of the “danger” of investing their capital in Vietnam.

The Financial Supervisory Commission, South Korea’s top financial regulator, has said it will review all Vietnam-related funds now in circulation in Korea.

This will be followed by “stricter screenings” of those hoping to invest in this field. The move has been justified by the “risks and economic disproportion” linked to the funds that are seen are a “Trojan horse” to penetrate the Korean economy.

• South
• Korea
• United
• States
• vietnam
• economy
• free
• trade
• pacts
• funds
• investments
• capital