South Korea Beef Row: Striking Builders Add to Growing Calls for Pm to Resign

South Korean builders today joined striking truck drivers in the latest blow to the president, Lee Myung-bak, who is facing public clamour to resign.

To make matters worse for Lee, who took office in February, the latest talks with the US to resolve a row over beef imports faltered overnight without progress.

Lee's decision to lift restrictions on American beef imports in April triggered his sharp fall in the public opinion polls. South Koreans accused Lee of putting relations with the US ahead of public health concerns amid fears of mad cow disease.

South Korea and the US are holding talks in Washington to revise the April agreement. South Korea's trade minister, Kim Jong-hoon, who was initially scheduled to head home after several days of meetings, will remain in the US today for further negotiations with his American counterpart, Susan Schwab.

Seoul wants to revise the April agreement to bar shipments of US beef older than 30 months, which is believed to carry a higher risk of mad cow disease.

"The two sides agreed to cooperate in seeking a mutually satisfactory solution... and noted that more time was needed to come up with practical steps," South Korea's trade ministry said.

Other countries restrict imports of older American beef. Japan only allows meat from cattle younger than 20 months. Lee yesterday vowed not to allow the import of meat from older cattle, in the hope of defusing a public furore that has seen weeks of candlelight vigils and occasional violent protests.

Criticism of the beef deal has escalated into broader discontent against the pro-business policies that helped give the conservative Lee his landslide victory in December's presidential election, ending a decade of left-of-center rule in the world's 13th largest economy.

The striking construction workers are pressing for cheaper fuel and higher pay. The militant Korean Confederation of Trade Unions is expected later to announce it would call on its more than 600,000 members to stage a walkout in opposition to Lee's privatization and pension reform plans.

Lee is widely expected to ditch a number of top aides and ministers and may even face the humiliating prospect of inviting his chief conservative rival to become prime minister to boost his popularity, which has tumbled to less than 20%.

The protests have come amid a global economic slowdown and surging inflation that has derailed Lee's hopes for 7% economic growth this year - part of his election manifesto. Most economists say he will be lucky to match last year's 5% rise.

The finance minister, Kang Man-soo, said the government was reviewing its policies in the face of mounting public anger. He would not say how far it would go to dilute the sweeping reforms it claimed would boost local and foreign investment and enable South Korea to compete with Japan and China.