Seoul, Nov 22: South Korean newspapers on Saturday voiced "national shame" over Seoul's decision to seek aid from the International Monetary Fund (IMF) fearing the country would now lose its economic independence.

"President Kim Young-sam is most responsible for dragging the economy into its worst condition," the Dong-a Ilbo said. "This is like losing our economic sovereignty." "It's a National shame and a shame for our people," said the Hankook Ilbo.

Seoul said on Friday it would seek up to $20 billion in stand-by credits from the IMF to overcome a deepening financial crisis, opening the door to the IMF dictating policy, especially the restructuring of bloated industries and retrenchment of workers. Newspapers called the IMF bailout "economic trusteeship". The term has strong associations for Koreans, who recall the trusteeship of Korea given to the United States, the Soviet Union, Britain and China at the end of World War II which halted 35 years of Japanese colonial rule.

While many South Korean economists, political parties and business groups were ready to swallow the bitter pill and their pride for a speedy economic recovery, some civic groups and labour unions have opposed IMF aid, fearing possible social instability.

Some editorials said the bailout was inevitable and called for South Koreans to grab the opportunity to end the country's worst ever financial crisis. "We have put on an IMF oxygen mask, as we cannot breath alone," said the Joongang Ilbo. "But now that it has been decided to seek IMF help, we must face our tasks." Stock markets and labour unions gave Seoul's decision a thumbs down.

Seoul stocks closed sharply lower on Saturday on fears of the pain that an IMF package would bring, brokers said. The composite stock index shed 4.08 per cent, or 20.64 points, to close at 485.43. South Korea's militant Korean Confederation of Trade Unions, which spearheaded a month of strikes early this year, said it was against seeking IMF assistance. "We will lose our economic sovereignty and workers will suffer the most," said Chung Sung-hee, spokesman for the 550,000-member-strong umbrella Union.

"We are opposed to any conditions that would lead to massive layoffs as a result of an industrial restructuring."

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.