South Korean party boss quits after opposition wins

SEOUL, June 1 (Reuters) South Korea's main conservative party scored a landslide win in local elections, official results showed today, dealing a blow to the president that prompted the resignation of a party boss tipped as his possible successor.

The drubbing for President Roh Moo-hyun's liberal Uri Party leaves him in a weak position to advance his agenda of economic reforms and closer ties with North Korea for the little under two years he has left in his term, analysts said.

It also puts the conservative opposition Grand National Party (GNP) in the driver's seat ahead of the December 2007 presidential election and parliamentary polls the following year.

Uri party leader Chung Dong-young, a possible presidential contender, told reporters he was quitting to take responsibility for the loss.

The GNP, riding a wave of sympathy for its leader who was slashed in the face during the campaign, and disenchantment over the economy, won 12 of 16 major races for mayors and provincial governors in Wednesday's elections.

The GNP won the biggest race, that for mayor of Seoul, where about one in five South Koreans live.

Uri, which translates as ''us''. picked up just one seat, the National Election Commission reported.

The smaller Democratic Party won two of the major regional races and an independent won the final race, it said.

''The party can show its true mettle when it is in a time of crisis,'' Roh's spokesman quoted him as saying.

RESTRAINT ON REFORM The GNP's sweeping victory in the elections for nearly 3,900 mayors, governors, city councillors and regional assembly members comes on the heels of two major setbacks for Uri in parliamentary by-elections over the past year.

''The humiliating electoral results for the Uri Party will constrain the president's ability to implement his reform objectives, since he will be increasingly perceived as a lame duck,'' said Bruce Klingner, an Asia analyst for the U.S.-based Eurasia Group, in an email.

Roh, a liberal former labour lawyer who narrowly won the 2002 election, has struck an accommodating tone towards North Korea. He said earlier this year he was willing to make ''many concessions'' and give ''unconditional assistance'' to Pyongyang.

Roh also had run-ins with Washington, warning the Bush administration that Seoul would not support the United States taking hard-line policies toward Pyongyang.

The GNP takes a tough line against its neighbour across the heavily militarised border, just an hour's drive north of Seoul.

Its leaders have criticised Roh's government for not doing enough to protect human rights in North Korea and said Seoul should attach more strings to the massive aid it gives Pyongyang.

Klingner said Wednesday's election results could mean that Uri would eventually split, with those who want to see more pragmatic policies on economic reform and foreign policy likely to walk out, leaving behind supporters of more sweeping reforms.

Roh's popularity has steadily dwindled while in office. His support ratings fell below 30 percent in recent polls on public perceptions that his government has failed to boost the economy and mismanaged foreign affairs.

Reuters AD DB1112