Chohung bank workers staged a lie-in

The government has been accused by analysts and business groups of a 'soft' approach towards strikers so far.

But prime minister Goh Kun has now warned the government is ready to use force against the strikes that are threatening an already fragile economy.

His intervention comes as the Korean Confederation of Trade Unions (KCTU) called for a four-hour walkout on Wednesday and said about 100,000 workers would strike.

Union members are demanding a cut in working hours and an increase in the minimum wage.

Motoring on

South Korea's economy is on the verge of its first recession in five years, according to business groups who have criticised the president, Roh Moo-hyun, for giving in too easily to union demands.

The president was involved in a deal at the weekend to delay a bank merger for three years, following a four-day strike by union members at the Chohung Bank.

Earlier threats by railway workers led the government to scrap plans to privatise some railway operations.

The KCTU said the latest action on Wednesday was calling for improved working conditions and for the law on establishing special economic zones to be scrapped.

South Korea's biggest motor group, Hyundai, is among the firms most affected by the strike, with workers demanding an 11% pay increase.

Keep talking

But the prime minister warned the strikes could "seriously undermine our economy and have a bad effect for investors".

Goh Kun added: "The people will neither understand nor tolerate political strikes, which are unjustified and cause severe side effects for the national economy and people's livelihood."

He said the government would now take stern action against the illegal strikes but urged businesses to negotiate with unions.