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South Korea's liberals in crisis ahead of election

SEOUL, Oct 9 (Reuters) South Korea's ruling liberal party is in disarray two months before the country's presidential vote, with its front-runner under investigation for violating election laws and some challengers boycotting campaign events in protest.

The left-leaning camp can hardly afford the turmoil.

Although it won the last two presidential races, its top candidates are now 40 percentage points or more behind the conservative party's nominee in the run-up to December's election.

Today, two contenders ended a brief campaign boycott in protest of suspected fraud in the liberal United New Democratic Party's (UNDP) primary. The party picks its nominee next Monday out of a list whose star draws are even struggling to get double-digit ratings in opinion polls.

''Primaries tend to become intense. However, that intensity isn't stirring up people's interest in the UNDP's primary. Instead, it's pushing them away,'' said Jeong Chan-soo, a specialist in domestic politics with MIN Consulting.

Polls show that for most voters the top election issue is making Asia's fourth-largest economy more competitive, for which they prefer former high-flying Hyundai executive Lee Myung-bak and his conservative Grand National Party. His entry into the presidential Blue House would end 10 years of rule by liberals.

''This election is basically a fight of Lee Myung-bak versus Lee Myung-bak. The outcome will depend on whether Lee makes a mistake or not, and how serious the mistake might be,'' said Jeong.

Lee wants to decrease regulations, make the country more open to foreign investors, crack down on troublesome unions and take a harder line on North Korea than the current government.

But he has been beset by rumours of shady financial deals and has been investigated by state prosecutors over possible improper property speculation. He denies any wrongdoing.

The front-runner for the liberals is Chung Dong-young, a TV newscaster-turned-politician who once served in the government of the current president, Roh Moo-hyun, as his point man for North Korea. He has won the first four of eight regional votes.

Last weekend, police tried to raid Chung's campaign office to investigate suspected identity theft that may have resulted in him receiving more voters for local primary elections than he was entitled to. Chung's camp denies the allegations.

Another liberal candidate, Sohn Hak-kyu -- who has led Chung in public opinion polls -- says the primary system is tilted towards his rival.

''The UNDP primaries have been tarnished by shameful events,'' Sohn told reporters today. ''The UNDP is in a crisis.'' Reuters ARB GC1240

Australia's Tenix seeks interest for A$1 bln-plus bids

SYDNEY, Oct 9 (Reuters) Australian defence and technology systems group Tenix will seek expressions of interest from up to 40 potential bidders in a proposed A$1 billion ($893 million) auction of the private company, sources familiar with the matter said Tuesday. Australian construction firm Leighton Holdings Ltd and engineering firm United Group Ltd were among possible suitors who planned to take a look at the Tenix assets, other sources said, confirming local media reports. Tenix said this week it.....

South Korea may allow sale of corporate bond funds

SEOUL, Oct 9 (Reuters) South Korea may allow the sale of investment funds specialising in corporate bonds as part of efforts to boost the corporate bond market, a senior official at the financial regulatory agency said on Tuesday. Jeon Hong-yul, deputy governor of the Financial Supervisory Service, said the authorities wanted the domestic corporate bond market to play a bigger role as a convenient funding source for companies. ''We plan to consider introducing corporate bond investment funds to spur issuances of.....

POSCO to raise steel plate prices by 9.9 pc

Seoul, Oct 9: POSCO Co. Ltd, the world's fourth-largest steel maker, said on Tuesday it would raise the price of its steel plates for shipbuilding by 9.9 percent, reflecting higher costs and strong demand. The South Korean steel maker will increase the price to 665,000 won ($724.8) per tonne from 605,000 won, effective from Oct. 25, the company said in a statement. Global prices of steel products, particularly for shipbuilding, have risen as shipbuilding yards have very strong order books in.....
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