The session comes as Asia's fourth-largest economy is battling high inflation, a fall in its stock market and a weakening of its currency, with analysts wondering how much reform measures can help in turning the tide.

The ruling Grand National Party (GNP) said it planned to propose legislation to cut corporate taxes, privatise government-owned agencies, make it easier for non-financial firms to invest in financial firms and ease other investment rules.

President Lee Myung Bak, who stormed to victory in a December 2007 election, was supposed to easily push through the reform measures when his the GNP became the majority in the National Assembly after winning an April vote.

But the Lee administration bungled a deal on importing US beef, which led to massive street protests against his government. Opposition MPs seized on Mr Lee's weakness to slow down his reform plans by delaying the start of the full session of parliament by about three months.

'The National Assembly cannot afford to be idle and dragged backwards because it is caught up in an ideological struggle or political confrontation,' the GNP said on its website.

Mr Lee and the GNP have said they want to soon pass the free trade deal with the United States that was struck last year.

Analysts said the pact could raise their US$78 billion (S$111 billion) in two-way trade by about US$20 billion.

Parliament is likely to approve the deal that is supported by a majority of South Koreans, lawmakers said, which should put pressure on the US Congress to start deliberations.

US automakers have criticised the deal, saying it does not do not enough to level the playing field in the auto trade. -- REUTERS