After Seol, 'Hot Issue' Legislative National Assembly... Coexistence, Non-face-to-face Medical Care, Prosecution Reform, etc.

[Asia Economy Reporter Park Cheol-eung] After the Lunar New Year holiday, the National Assembly will immediately begin full-scale legislative discussions on key issues. A series of bills related to the so-called 'Win-Win Solidarity' proposed by the Democratic Party of Korea, the Service Industry Development Framework Act which will determine whether non-face-to-face medical services are allowed, and bills related to regulatory innovation are all lined up. A bill to completely abolish the prosecution's investigative authority and establish a separate investigative agency will also be seriously considered.

However, it is uncertain whether smooth discussions will take place as the People Power Party is surrounding the National Assembly with a cold atmosphere by demanding the resignation of Chief Justice Kim Myeong-su and a state audit on the 'North Korean nuclear power plant.' There is strong opposition from the business community and opposition parties regarding the win-win related bills.

According to the Democratic Party on the 10th, there are about 100 bills to be promoted in the February extraordinary session of the National Assembly, and in particular, they plan to pass the Business Loss Compensation Act, the Cooperative Profit Sharing Act, and the Win-Win Social Solidarity Fund Act as soon as possible. Since the overwhelming majority of seats won in the April general election last year, the Democratic Party has pledged and implemented real estate-related laws, amendments to the Commercial Act including restrictions on major shareholders' voting rights, and the enactment of the Serious Accidents Punishment Act.

Among the win-win bills, the cooperative profit-sharing system is the closest to realization. The day before, Lee Nak-yeon, leader of the Democratic Party, visited KAIST Seoul Campus and said, "The cooperative profit-sharing system is not as active as we would like," adding, "Shouldn't the current 10% deduction rate (corporate tax deduction on contributions) be at least '20% plus alpha (α)' as an incentive?"

Currently, only a performance-sharing system is introduced where the entrusted company (small and medium-sized enterprises) can achieve joint goals such as cost reduction with support from the entrusting company (large enterprises) and share the results. The government and ruling party are pushing for legislation to share financial performance such as profits of the entrusting company.

The Democratic Party's Inequality Resolution Task Force (TF) is preparing to propose a bill for a fund to be used as resources to overcome COVID-19 through voluntary private contributions or donations. It is expected to include various funding methods such as corporate participation through tax credits, recovery of public funds, and reserves from the Bank of Korea. However, the key issue is how smoothly consultations with the government side, which must bear some burden, will proceed.

Regarding this, not only the business community but also the People Power Party criticize, saying, "Is it Ubuntu (I am because you are) to force mutual aid among the private sector in the name of solidarity and coexistence while demanding results achieved through sweat and tears even in the COVID tunnel?"

Compensation for losses of self-employed businesses is set to be replaced by disaster relief funds without retroactive application in the past, and supported through legislation in the future. Hong Ik-pyo, chairman of the Democratic Party's Policy Committee, appeared on MBN TV the day before and said about the supplementary budget, "The party, government, and Blue House have each organized their positions and agreed to start discussions after the Lunar New Year holiday." The task is to reconcile differences over whether the compensation should be universal or selective.

Future loss compensation bills may gain momentum as the opposition party also shares consensus. Kwon Young-se, a four-term senior member of the People Power Party, also proposed a bill the day before to compensate for at least 30% of sales losses.

Additionally, the Democratic Party is positioning regulatory innovation as one of its main legislative goals, and as part of this, it plans to discuss the Service Industry Development Framework Act, which has been stagnant for over 10 years. The biggest issue is whether to allow non-face-to-face medical services. Regarding prosecution reform, the Democratic Party's special committee plans to propose a bill this month to completely abolish the prosecution's investigative authority and establish a separate investigative agency, drawing attention.

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