SEOUL - South Korea's President Kim Dae-jung on Monday put a brave face on the start of his final year in office with his popularity at rock bottom and North Korea still ignoring his peace overtures, AFP reported.

Wiht the government facing new labor conflict and many observers having already written off his administration, the president held a low-key luncheon to mark the anniversary of the launch of his five-year term.

"With the fourth anniversary of our government, we should review our achievements and do our best to rectify pending national issues," said the 76-year-old leader who has had a momentous four years in office.

President Kim has brought South Korea's economy back from the depths of the Asian financial crisis, held a historic summit with the leader of the communist North, Kim Jong-il, won the Nobel Peace Prize and last week was hailed as "a visionary" by U.S. President George W. Bush for his peace efforts toward Pyongyang.

But North Korea suspended contacts with the South in anger at Bush's hardline policy toward the Stalinist state, economic reforms have gone only part of the way toward ending South Korea's ills, according to experts, and even the peace prize has had little impact on the public.

Opinion poll ratings all show a heavy majority disapproving of the former dissident and all the big-selling newspapers are strong opponents of the government.

"Recalling the past four years of the government makes us feel heavy-hearted," commented the *** Dong-a Ilbo *** newspaper on Monday. "Though launched as 'the government of people', the administration has left only disappointment and disbelief for the public."

It said there was no time to launch new initiatives, adding: "The most urgent task that the current regime must tackle is to thoroughly clarify corruption scandals linked to those in power."

Joongang Ilbo said: "A significant part of the DJ (Dae-Jung) government's policies launched in the name of 'reform' are lagging in an unfinished state."

The opposition grand national party was equally scathing, releasing a statement saying "Kim's four-year rule has been tarnished by corruption scandals and policy mismanagement."

GNP leader Lee Hoi-chang, who is favourite to win a presidential election to be held in December, has said he will scrap the president's sunshine policy of engaging the North with economic aid and other enticements.

President Kim's aides have insisted however that he does not care about popularity while his ruling millennium Democratic Party has insisted that the nobel laureate is misunderstood.

With key local elections to be held in June ahead of the all important presidential election, MDP chairman Han Kwang-ok said: "It is regrettable that the people have very low recognition of our economic and social reforms.

"We must apologize for our mistakes in the reform process but also do what we must do," he added.