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At this moment, the South Korean government is attempting to legislate a neo-liberal economic enforcement ordinance for the Economic Free Zone Act (EFZA), popularly known as the special economic zone (SEZ) act. The act is planned to take effect from 1st July. Also, the Korea-Chile FTA awaits to be ratified in the National Assembly.

We, a coalition of more than 100 civic and social organizations including Korean Confederation of Trade Unions, Korean Farmer's League, and Teacher's Union, are opposed to the Roh Moo-hyun government’s plan to create Economic Free Zone (EFZ) and pass the Korea-Chile FTA. The EFZA will destroy ordinary people’s lives. It is a vicious law that will only expand the freedom of corporation in all sections of society such as labor, education, environment, and health.

We know too well that Maquiladora of Mexico not only failed to revive the Mexican economy but also deteriorated the standard of living for ordinary Mexican people.

The South Korean government must not enact such an enforcement ordinance. The promulgation of this enforcement ordinance for the EFZA will only prove once and for all how anti-people the Roh Moo-hyun government is, contrary to what it proclaim to be. As a further blow to the injury, the South Korean government is fulfilling its duties to the WTO, once again proving to the world its willingness to be servile to the doctrines of trade liberalisation.

However, the Korean people are not willing to let the government go ahead with the neoliberal deals. After a subdued period since last winter, Korean organisations are reviving and renewing the fight against the SEZs. So far the coalition has held press conferences, picket campaigns and mass demonstrations against the SEZ. In particular, about 500 people gathered and marched through central Seou on 26th April, demanding for the government to abrogate its plans. Larger mobilisations are planned on 17th, 20th and the 30th June. At the same time, farmers will restart their camp out in front of the National Assembly against the Korea-Chile FTA and the WTO. The regular session of the National Assembly is scheduled to begin on 30th June.

The struggles against the SEZ and FTAs are themselves struggles against the WTO and neoliberalism; however, actions that directly target the WTO process are being formulated among South Korean social movements. Therefore, by building the struggle against these neo-liberal policies, we, civic organizations and social movements of South Korea, hope to contribute to the building of the international movement against WTO. We earnestly hope that our struggle against the EFZA will become part of the international struggle against neo-liberal globalization.

In the spirit of international solidarity, we would like to urge you and your organization to do the following.

Please write protest letters to President Roh Moo-hyun and the Speaker of the National Assembly protesting the government’s attempt to enact an enforcement ordinance for the Economic Free Zone Act and the ratification of the Korea-Chile FTA.

The President of Republic of Korea

1 Sejong-no, Jongno-ku, Seoul 110-820, Republic of Korea

E-mail: president@cwd.go.kr Fax: +82-2-770-2209

The Speaker of the National Assembly

1, Yoido-dong, Youngdeungpo-gu, Seoul 150-701, Republic of Korea

E-mail: leems@assembly.go.kr, Tel: +82-2-784-0911~3

Please cc. your emails and fax to the following contact numbers:

Email: kopa@jinbo.net, Fax: +82-2-778-4006

Economic Free Zone Act Fact sheet

Labor: eliminates monthly leave and paid sick days or menstruation holiday, expands the scope of temp workers, limits collective action, evades the compulsory employment of physically challenged and elderly people.

Education: It allows a foreigner or foreign school to open an educational institution. If allowed without any restriction, Koreans will be able to attend foreigners’ schools. Koreans will pay very high tuitions to attend such school. This will create a band of elite schools for the rich.

Environment: For a foreign investment company engaged in development, 34 laws related to environment will be ineffective. The EFZA is prior to all other domestic laws. This will reduce the environmental cost of the company resulting in environmental disaster.

Health: Health related facilities for foreigners are approved. They will not be covered by the national health insurance. This signals the beginning of medical institution for profit. Surely, this will lead to marketing of private health insurance and increase in medical cost.

Taxes: Major taxes like corporate tax, income tax, property tax, and the comprehensive land tax will be reduced or exempted. National and local taxes will also be reduced or exempted.

Targeted Areas: According to the EFZA, EFZ is designated by Minister of Finance and Economy upon a request of a mayor or provincial governor. The Roh Moo-hyun government is trying to make the entire country into one EFZ.

Qualification: Any company with a foreigner owning 10% or more shares of the foreigners’ stocks is effected by the law. In other words, all Korean companies would qualify.