"Democratic Party and United Party United...? Tragedy" Appeal as 'Internet Banking Act' Rejected

Internet Specialized Bank Act Rejected After Final Debate on 5th
Rep. Park Yong-jin and Others: "KT, a Company Involved in Employment Corruption and Illegal Political Fundraising... Must Remember the Candlelight Square"
Rep. Jeong Tae-ok Urged "Respect the Bipartisan Agreement" but Bill Rejected
Future United Party Lawmakers Protest and Walk Out

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The amendment to the "Special Act on the Establishment and Operation of Internet-Only Banks (Internet-Only Bank Act)" was rejected in the plenary session. Park Yong-jin, a member of the Democratic Party of Korea, and others opposed the bill, calling it "a clear special privilege for a specific company, KT," and after the bill was rejected following the debate, members of the United Future Party protested that the ruling party broke the agreement and left the plenary hall.

Moon Hee-sang, Speaker of the National Assembly, announced immediately after the vote on the bill in the plenary session on the afternoon of the 5th, "The Internet-Only Bank Act was rejected with 184 members present, 75 in favor, 82 opposed, and 27 abstentions." The amendment to the Internet-Only Bank Act, which passed the Legislation and Judiciary Committee the previous day and was brought to the plenary session, mainly aimed to remove the record of violating the Fair Trade Act (penalty of fine or higher) from the approval requirements for major shareholders holding shares exceeding the limit in internet banks.

[Image source=Yonhap News]

Park Yong-jin, the first to speak in opposition, said, "The amendment to the Internet-Only Bank Act breaks the public's trust," emphasizing, "Especially, deleting the Fair Trade Act from the laws used to screen the qualifications of major shareholders of internet banks is a clear special privilege for a specific company, KT."

Park stated, "KT has caused controversies by continuously committing illegal acts such as employment irregularities and illegal political fund raising over the past few years," adding, "In 2009, KT was fined hundreds of millions of won for colluding on telephone charges, and in 2013, it was fined for collusion detected during the bidding process for the 'Seoul Subway Mall' project."

He continued, "The Internet-Only Bank Act should be for innovative companies, not a special privilege or pardon for illegal companies," and requested, "The Fair Trade Act should be included again as a law subject to review, and the bill should be redrafted." He also stressed, "This is against the original intent of the amendment to the Internet-Only Bank Act agreed upon by both ruling and opposition parties," emphasizing, "At that time, the tacit agreement between the ruling and opposition parties was that illegal companies like KT should not be allowed."

Chae I-bae, a member of the Minsaeng Party, who spoke next in the debate, said, "The current law allows major shareholders to be approved even if they have minor violations of the Fair Trade Act, but this amendment aims to make those who should not be major shareholders into major shareholders."

Chae said, "Banks manage and operate the public's money, so they must be the most trustworthy to the people," adding, "That is why when banks are in danger, taxpayers' money is sometimes injected to save them."

He further requested a vote against the bill, saying, "If members here today vote in favor of the 'KT special privilege law,' it means allowing immoral companies to manage the public's money, succumbing to KT's immoral lobbying that commits illegal and unfair practices."

Chu Hye-sun, a member of the Justice Party, urged the Democratic Party members, saying, "Since the Democratic Party is the ruling party that has protected democratization and economic publicness, this bill should have naturally been stopped in the Political Affairs Committee," and called for its rejection, saying, "This is the last chance."

Chu added, "The greatest tragedy of the 20th National Assembly is that the ruling party and the main opposition party have become one in front of publicness and socio-economic underprivileged groups," emphasizing, "If there is still a will to protect publicness, the ruling party should once again remember the cries from the Candlelight Square."

[Image source=Yonhap News]

Jeong Tae-ok, the only member of the United Future Party to speak in favor, said, "This law was supposed to be passed as a package with the Financial Consumer Protection Act by bipartisan agreement," and argued, "Passing only the Financial Consumer Protection Act and not the rest is a breach of promise and will set a very bad precedent."

Jeong addressed the Democratic Party members, saying, "The Internet-Only Bank Act is also President Moon Jae-in's first regulatory reform bill," and warned, "If it is rejected, the fintech regulatory reform bill that President Moon mentioned will be frustrated here." He urged, "Considering the bipartisan negotiation process, I ask you to ensure its passage."

After the Internet-Only Bank Act was rejected, members of the United Future Party protested the breaking of the bipartisan agreement and left the plenary hall. Joo Seung-yong, Deputy Speaker of the National Assembly, said, "Since the quorum was not met, a brief recess was requested," adding, "We will resume after consultations among the negotiation groups are completed."

This content was produced with the assistance of AI translation services.