President Kim faces nagging problems in final year in office

President Kim faces nagging problems in final year in office

Agencies, Seoul/Tokyo

Four years ago, President Kim Dae-jung took office with promises to reconcile with North Korea and reform South Korea's inefficient economy in the aftermath of the 1997-98 Asian financial crisis.

On Monday, Kim marked the start of his final year in office amid frozen inter-Korean dialog and a joint strike by thousands of state workers opposing a government privatization plan that they fear would lead to mass layoffs.

Kim's popularity has also been plummeting amid a series of corruption scandals involving high-ranking government and party officials. One scandal implicated a relative on his wife's side.

But Kim remains optimistic, vowing in his last year in office to stabilize the economy, amend ties with North Korea and successfully stage the World Cup soccer finals.

"We must review what we have accomplished in the past four years and strive to successfully complete our four major tasks and stage four major events this year," the presidential office quoted Kim as saying on Monday.

Kim has also vowed to tackle corruption in his final year, and will preside over local elections, the Asian Games and the presidential election in December.

Kim's single five-year term ends in next February, and by law, he cannot seek re-election.

That gives him little time to mend ties with North Korea, which is upset by remarks by U.S. President George W. Bush naming it part of "an axis of evil." Last week, the hard-line communist country rejected Bush's renewed offer to start dialog and vowed to fight against the United States.

Inter-Korean relations warmed significantly following a historic summit between Kim Dae-jung and North Korean leader Kim Jong Il in 2000. Kim Dae-jung won that year's Nobel Peace Prize for his efforts to reconcile with the North.

But inter-Korean exchanges stalled most of last year amid tension between North Korea and the United States, a key ally of South Korea. Now, there is no official channel of dialog between the Koreas.

North Korea on Monday denounced Japan and the United States for their growing pressure on Pyongyang, warning that the Stalinist state will deal a retaliatory blow to "any war provocateurs."

North Korea's Rodong Shinmun newspaper criticized Japanese Prime Minister Junichiro Koizumi and U.S. President George W. Bush for agreeing in Tokyo last week to tighten their alliance in the region.