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North-South Korea talks cancelled over impeachment

SEOUL, Monday (Reuters)

South Korea cancelled bilateral economic talks planned for Monday after Pyongyang asked for a venue switch to the North because of the political uncertainty caused by the impeachment of President Roh Moo-hyun. In a sign the government wants to keep Asia's fourth-largest economy on track amid crisis, a Finance Ministry official said the government would seek a supplementary budget if necessary.

Friday's parliamentary vote stunned many, sparked nightly protests by thousands of candle-waving South Koreans and thrust the country into uncertainty. The Constitutional Court has six months to decide whether to uphold the vote, and Prime Minister Goh Kun is acting president during that time.

Police said they expect nightly protests in Seoul this week. The Unification Ministry said the North and South would discuss when and how to reschedule the talks, which had been due to discuss economic cooperation and transport links being built through the Demilitarised Zone border.

The North wanted the talks moved from Paju in the South to Kaesong in the North. "As the venue of talks has been suddenly relocated by North Korea, practically it was impossible to hold talks today," said a Unification ministry spokesman.

It was the first tangible fallout for North-South ties from Friday's impeachment vote amid rowdy scenes in parliament.

Goh took out advertisements in all the country's main newspapers on Monday to reassure people his government would do its best to run the country and stabilise financial markets. On Sunday, tens of thousands of South Koreans protested for the third successive night.

"I came here to impeach those spoiled politicians, who have made huge mistakes and still do not realise their wrongdoings," said Cha Jee-hoon, a 25-year-old university student in Seoul.

Police said further daily demonstrations in Seoul were planned and organisers expect about 10,000 each night. North Korea pointed the finger of blame for the first time on Sunday.

"It was none other than the United States that sparked such a disturbing development," the official KCNA news agency quoted a North Korean spokesman as saying. " The U.S. had hatched such a plot for impeachment in South Korea since October."

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