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S.Korean court overturns Roh's capital move plan

SEOUL, Thursday (Reuters)

South Korean President Roh Moo-hyun suffered a major political setback on Thursday when the Constitutional Court ruled his controversial $45 billion plan to relocate the capital was unlawful.

Roh had made relocating the capital away from crowded Seoul to two rural counties in the country's central region a key pledge in his 2002 election campaign.

The court's nine crimson-robed judges, in a televised sitting, ruled by a majority decision that a constitutional amendment was needed to move the capital from Seoul.

"The case has the six required for the follow ruling; the special law on capital relocation is unconstitutional," said the president of the court, Yun Young-chul.

Seoul city council members, academics and civic group representatives had lodged the case with the court in July, saying a national referendum should take place before the government could move ahead with the relocation.

Shares in construction and cement companies fell on South Korea's main stock exchange after the ruling was announced. The won and bonds were unchanged.

For the plan to go ahead after the court ruling, Roh must rework and resubmit a proposal to parliament, where his party has a majority.

The court said that proposal would need to call for a constitutional amendment. It was not immediately clear whether Roh would consider including a referendum, too. A spokesman for Roh's ruling Uri Party described the ruling as "very unfortunate", according to YTN television news.

Roh argues the move would allow balanced development in the country, which is the size of Belgium but where more than 10 million of its 48 million people live in the capital.

Opponents said Roh's plan was ill thought out and lacked a consensus. They said moving the capital south would also send the wrong signal to North Korea because it could be taken to mean the South did not expect unification any time soon.

Yun told the packed chamber in a 27-minute ruling there had been three differing views on the panel of judges, with a majority of eight agreeing the vote to move the capital was unlawful.

In August, officials confirmed the plan to move the future seat of government. The original blueprint to move the capital was approved by parliament last year.

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