PRESIDENT Kim Young-Sam of South Korea, conceding public anxiety and damage to the economy, agreed yesterday to send a controversial labour law back to parliament in a surprise concession to the opposition.
At a meeting with his main political rivals, Mr Kim expressed regret for the loss of billions of dollars through strikes occasioned by the forced passage through parliament last month of the controversial bill. Production losses from stoppages have been estimated at more than $3 billion. Labour strife had defeated the law's aim of revitalising a sluggish economy, Mr Kim said.
He also agreed to reopen debate on another controversial law reviving a once notorious domestic spy agency. And, in a further volte face, he told the leaders of three main political parties that he would instruct officials to suspend arrest warrants served on the strike leaders, seven of whom have been sheltering in Seoul's Myongdong Cathedral.
According to an account of the meeting by the opposition leader, Mr Kim Dae-Jung of the National Congress for New Politics, the President also indicated that the outlawed Korean Confederation of Trade Unions should be recognised. Multiple trade union representation is a major demand of international labour bodies.
Mr Kim Dae-Jung welcomed the president's retreat from his hardline stance.
However, the confederation said strikes would continue if the government did not declare the controversial law null and void.
The Confederation president, Mr Mr Kwon Young-Kil, told a news conference in the cathedral: "Talks today have not solved any of the basic problems." And he threatened to bring 200,000 workers in all sectors except public services out on strike today.
In a further sign of official compromise, police eased their security cordon around the cathedral.
Mr Kim's dramatic climbdown followed a decision by the Confederation to call off indefinite stoppages and limit industrial action to one day each week.
"Anything can be discussed in parliament again, whether it is the labour law or the law on the Agency for National Security Planning," a spokesman quoted the President as saying during the meeting.
Both laws were rushed through parliament in a six-minute dawn session on December 26th while opposition deputies slept. Until yesterday President Kim had insisted the laws could not be altered and rejected demands by the opposition for dialogue.
Nevertheless, it was clear yesterday that hard political bargaining still lay ahead. Unions and opposition parties were adamant that the labour law should be scrapped, but Mr Kim insisted that throwing out the legislation would go against the constitution and it could only be revised.
The law makes it easier for firms to sack workers and replace strikers. It keeps a ban on freedom of union association by delaying recognition of the Confederation until 2000.
Political analysts said the law was a major gaffe by President Kim and the climbdown would erode his authority in his last yearn in office and damage the ruling party in the run-up to presidential elections in December.
"This probably is the biggest blunder of Kim's presidency," said Prof Shin Jung-Hyun. "The blunder will increase pressure to turn him into a lame duck."