South Korea seen as bellwether for U.S. on trade

* Trade one area where Republicans could work with Obama

* Both sides could face resistance from within ranks

* Top U.S., S. Korean trade officials meet next week

By Doug Palmer

WASHINGTON, Nov 5 (Reuters) - The success or failure of U.S. trade talks with South Korea next week could signal how aggressively President Barack Obama's administration will move on trade in 2011, business leaders said on Friday.

If Obama cannot resolve obstacles that have blocked congressional approval of the Korea-U.S. Free Trade Agreement for three years, chances of bipartisan cooperation on trade could "blow up really early," said Jake Colvin, vice president at the National Foreign Trade Council, which represents major U.S. multinational corporations.

Business groups hope trade could be one area of cooperation between Obama and the Republican Party, which won control of the U.S. House of Representatives and picked up six Senate seats in midterm elections on Tuesday.

For that to occur, "both parties are going to have to stand up to their bases," Colvin said at a round-table to discuss the election results.

Obama will have to disappoint union groups that remain opposed to the Korea free trade agreement and two other pacts with Colombia and Panama that have also languished during Democratic control of Congress, he said.