SEOUL, March 9 (UPI) -- South Korean President Roh Moo-hyun on Friday nominated former finance minister and free trade flag-bearer as the country's new prime minister, reflecting his determination to push for free trade pacts with the United States and other economies.
Han Duck-soo, a U.S.-educated economist, has been serving as Roh's special adviser on the ongoing free trade negotiations with the United States, the key test for South Korea to clinch free trade deals with more than 15 countries by 2007.
Han, 58, an ardent advocate of free trade and an open market system, has served as deputy prime minister in charge of economy, trade minister and ambassador to the Organization for Economic Cooperation and Development.
Han "has served in various government posts related to the economy and has vast experience in managing state affairs," the presidential office said in a statement. "He is expected to stably manage the economy and other key national tasks in the final year of (Roh's) term."
Roh nominated Han as prime minister mainly because he is a free trade expert, presidential officials said. "President Roh hopes Han will conclude a free trade deal with the United States smoothly, paving the way for South Korea to clinch more free trade agreements," an official said, speaking on condition of anonymity. "President Roh has placed the top priority this year on concluding an FTA with the United States."
Roh has long vowed to push for FTAs with more than 15 countries before his term expires in February 2008. He has said a free trade pact with the United States will help South Korea jump on the free trade bandwagon that could ensure great benefits to its export-driven economy.
"I'll strive hard to help revitalize the economy, create more jobs and stabilize people's livelihoods," Han told reporters shortly after the announcement of his nomination. "I feel a heavy burden and responsibility. I'll do my best to help the people improve their livelihoods and cherish hope for the future."
Han has described market opening as "a necessity, not a matter of a choice."
"If we have a choice, it only concerns whether we utilize opening for benefits or being swept by the wave of opening," he said. He added a free trade deal with the United States is critical for the South Korean economic growth facing challenges from external uncertainties, such as high oil prices and the local currency won's rise against the U.S. dollar that has eroded the corporate profitability of exporters.
The South Korean economy, the world's eleventh-largest, is heavily dependent on exports. The total volume of its external trade amounts to 70 percent of the country's gross domestic product.
Han's rise comes at a time when South Korea is involved in tough negotiations with the United States aimed at tearing down trade barriers between the two countries.
This week's talks, the eighth round since they launched negotiations in June, are considered crucial in reaching an agreement by the end of March to meet their time schedule. The two sides hope to wrap up the negotiations before April, three months before U.S. President George W. Bush's power to sign trade deals without being subject to congressional amendment expires on July 1, 2007.
If signed, the deal with the United States would be South Korea's first FTA with a major economy. South Korea has signed FTAs with Chile and Singapore and is currently negotiating with several other countries and economic blocs.
On the back of the possible deal with the world's biggest economy, South Korea is seeking to launch formal talks with the European Union on forging a free trade deal in early May, according to Seoul's Finance Ministry.
But the government is facing strong opposition by farmers and factory workers who are concerned that wider market opening might jeopardize them. Hundreds of farmers and activists have staged protests this week at the free trade talks with the United States. They plan to have a bigger protest rally on Friday in which some 10,000 would join.
