Lee Nak-yeon's 'Cooperative Profit Sharing System' Fails to Pass Even the So-Called Threshold

Opposition: "No Possible Agreement"
Ruling Party: "Can't Wait," Determined to Push Through in March

[Asia Economy Reporter Oh Ju-yeon] The cooperation profit-sharing system, which Lee Nak-yeon, leader of the Democratic Party of Korea, has been focusing on promoting, is failing to gain momentum due to opposition from the ruling party. The ruling party initially planned to pass it during the February extraordinary session of the National Assembly, but it could not even pass the subcommittee of the Industry, Trade, Small and Medium Venture Business Committee. The ruling party is aiming to pass it in the March session, but continued opposition from the opposition party suggests difficulties ahead.

On the 24th, Lee Cheol-gyu, the opposition party's secretary of the Industry Committee, said in a phone call, "There is absolutely no point of agreement on the profit-sharing system." He raised his voice, saying, "Because it infringes on constitutional values," and "Just because a bill is proposed does not mean it should all be passed."

[Image source=Yonhap News]

The Small and Medium Venture Business Bill Subcommittee of the Industry Committee, scheduled to be held on the 22nd, was canceled. This was because no agreement was reached between the ruling and opposition parties on key bills, including the Small Business Protection and Support Act, which establishes the basis for operating a simple payment system and the Korea Simple Payment Promotion Agency, and the Act on Promotion of Mutual Growth between Large and Small-Medium Enterprises, which defines the concept of the cooperation profit-sharing system. Among these, the Act on Promotion of Mutual Growth between Large and Small-Medium Enterprises was one of the bills that attracted attention as it was handled together with the mutual growth solidarity fund and loss compensation, which Lee Nak-yeon has been focusing on. Earlier this month, Lee also said that the corporate tax deduction incentive for companies participating in the cooperation profit-sharing system should be expanded from the current 10% to at least 20%, stating, "The purpose is to activate this since it has not yet been legislated."

Unlike the ruling party, which is eager to legislate the cooperation profit-sharing system, the opposition party maintains its opposition, arguing that it will increase the burden on companies.

Choi Seung-jae, a member of the People Power Party, criticized, "There are numerous bills related to small business owners piled up, but the ruling party keeps talking only about the profit-sharing system and Zero Pay, which have conflicting opinions," adding, "Last time, the meeting ended after discussing only this issue. It will come up again in March, which is unusual." Regarding the evaluation that the opposition is 'stalling,' he said, "We did not oppose unconditionally," and added, "The profit-sharing system should be voluntary; if legislated, it could become a way to twist the arms of large corporations."

Despite such controversy, the ruling party is determined to push forward. A ruling party member of the Industry Committee said, "We cannot wait forever just because the opposition boycotts, nor can we hold onto the bill," referring to previous cases where bills were unilaterally submitted.

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