Regular National Assembly Session Amid COVID-19 Crisis... Spotlight on the "Hot Potato" of Economic Democratization

[Image source=Yonhap News]

[Asia Economy, reporter Park Chuleung] Amid the ongoing spread of COVID-19, the regular session of the National Assembly is set to begin, launching a 100-day schedule. The session will start with discussions on the fourth supplementary budget, including next year's budget proposal and the urgent issue of the second round of emergency relief funds. Fierce debates are expected between the ruling and opposition parties over economic democratization bills and the launch of the Corruption Investigation Office for High-ranking Officials (CIO).

According to the National Assembly on August 31, the regular session will kick off with an opening ceremony on September 1. This will be followed by speeches from the representatives of negotiation groups on September 7-8, and interpellation sessions from September 14-17. Although the National Assembly was closed and all party meetings and standing committee schedules were suspended after a reporter tested positive for COVID-19 on August 27, the regular session will proceed as originally planned. On this day, the Assembly resumed normal operations, with seven standing committees, including the Special Committee on Budget and Accounts, holding plenary meetings and budget review subcommittees.

On September 24, a plenary session will be held to process pending bills, and the parliamentary audit of government affairs will take place for three weeks from October 7 to 26. A policy speech for the handling of bills is scheduled for October 28.

In November and December, six plenary sessions are planned for bill processing, during which time next year's budget will be finalized. According to the National Assembly Act, the legal deadline for passing next year's budget is December 2. The government and the ruling party have decided to maintain an aggressive expansionary fiscal policy, and finalized next year's budget proposal during a party-government consultation on August 26. Many expect the budget to exceed 550 trillion won, about 9% higher than this year, while opposition parties such as the United Future Party emphasize fiscal soundness and plan to scrutinize the proposal closely.

Both the ruling and opposition parties generally agree on the necessity of the fourth supplementary budget. However, there are differing opinions on whether, as in the first round, the relief funds should be distributed to all citizens or only to selected groups. As the damage to small business owners and others worsens due to strengthened social distancing, urgent special measures are needed. Lee Nakyon, the newly elected leader of the Democratic Party, said in a video conference with party leadership the previous day, "Preparations are underway to hold a party-government-Blue House meeting around the first half of this week. We will mainly review and discuss support for people's livelihoods and the COVID-19 situation." Lee has consistently stated that support should be concentrated on those citizens who have suffered greater losses.

One of the major "hot potatoes" is the so-called "Three Fair Economy Bills," which include the Fair Trade Act amendment, the Commercial Act amendment, and the new Financial Group Supervision Act, all passed by the Cabinet on August 25. These bills, often referred to as chaebol reform legislation, aim to strengthen regulations on collusion, restrict unfair internal transactions, and oversee the capital adequacy of financial affiliates of large conglomerates. While the Democratic Party, with its overwhelming majority, is showing strong determination to push these bills, fierce opposition is expected from the United Future Party and the business community.

The launch of the CIO, which remains stalled, is also a pending issue. The Democratic Party has emphasized that if the United Future Party continues to refuse to nominate a member for the CIO Chief Recommendation Committee, it will have no choice but to amend the law. The United Future Party insists that the Constitutional Court must first rule on the constitutionality of the CIO Act, but it is reportedly preparing its own nominee internally. If the law is amended, the opposition party would still retain leverage to reflect its position.

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