World Cup strike crackdown vowed

South Korean power industry workers stage a protest rally, holding placards reading 'No sale electricity supplies'

SEOUL, South Korea -- South Korea's finance minister has warned of tough action against illegal strikes ahead of football's World Cup finals.

On Thursday thousands of South Korean hospital workers joined strikes orchestrated by a militant umbrella union, heightening concerns about growing labor unrest in the run-up to the finals.

The workers are demanding a shorter working week and an end to Seoul's privatization plans.

But the country's finance minister Jeon Yun-churl has said Seoul will stick with plans to sell nationalized banks and continue to support economic growth.

Some 16,400 workers at 41 hospitals walked off their jobs at 7:00 a.m. (2200 GMT) on Thursday, according to Reuters news agency. On Wednesday, 31,000 metal and chemicals workers went on strike.

But a union leader from another branch said some workers had dropped plans to strike, averting more walkouts after they struck deals on wages and other demands.

Deals reached

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Fears that bank workers could join the strike also appeared to fade after an agreement was reached on a shorter working week.

But the labor action adds to a range of World Cup headaches including possible terror attacks, hooliganism and disruption caused by an outbreak of foot-and-mouth disease near Seoul.

President Kim Dae-jung has urged workers to put aside their grumbles at least until the World Cup is over at the end of June.

Still, 12,000 of 230,000 taxi drivers have vowed to strike on Friday in a move the government fears will damage Korea's profile overseas.

Financial markets have largely ignored the strikes.

Public criticism has put pressure on management and unions to resolve labor issues while South Korea is in the spotlight during the World Cup finals starting on May 31.

The heads of financial institutions agreed on Wednesday to five working days a week, one day less than at present, starting on July 1, a bank association official told Reuters.

President Kim Dae-jung welcomed the agreement.

"I'm glad to hear that the financial sector union and management have resolved the issues through dialogue and cancelled the strike plan in this important time ahead of the World Cup games," President Kim said in a statement through his spokeswoman, Park Sun-sook.

Meanwhile, the finance minister said on Thursday the government would take stern action against illegal strikes and would not be deflected from plans to privatize key assets.

"Labor strikes would have a negative impact on the nation's credit standing and pose a stumbling block to an economic recovery," Jeon Yun-churl told a group of executives.

"(The government) will take action against illegal strikes by laws and principles," he added.