Kim Bu-gyeom Suggests Possibility of Supplementary Budget Increase... Power Struggle Between Ruling and Opposition Parties Over Funding Sources

Kim "If the National Assembly unites its will, the government will come up with a reasonable plan"
Expecting a tug-of-war over funding arrangements

Prime Minister Kim Boo-kyum is attending the plenary session of the Special Committee on Budget and Accounts held at the National Assembly on the 7th, delivering a greeting./Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Hyunju Lee, Hyunji Kwon, Sejong=Reporter Sunhee Son] Prime Minister Kim Boo-kyum hinted at the possibility of an increase in the supplementary budget (추경) for the first time this year ahead of the review. A fierce battle between the ruling and opposition parties over securing funds is expected to intensify.

On the 7th, Prime Minister Kim attended the plenary session of the National Assembly's Special Committee on Budget and Accounts and said in his opening remarks, "If the National Assembly, representing the people, unites in purpose, the government will do its utmost to come up with a reasonable plan and actively engage," adding, "The government will actively consider the reasonable alternatives proposed by the committee members during the budget review process."

Kim’s remarks were interpreted as effectively considering an increase. Until now, the government had expressed reluctance to increase the budget. On the 4th, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated, "Regarding the increase, the executive branch’s judgment should be considered alongside the ruling and opposition parties’ agreement," expressing opposition. This led to calls within the Democratic Party for the impeachment of Deputy Prime Minister Hong.

Democratic Party lawmaker Woo Won-shik, a member of the Budget Committee, appeared on a radio show that day and criticized, "Deputy Prime Minister Hong’s attitude of refusing to comply even if the National Assembly agrees is a very serious statement that denies the democratic system itself," adding, "It is an overreach that ignores the National Assembly’s budget review authority and a contemptuous remark that directly rejects the voices of the people, livelihoods, and the field, who expect an active government role during difficult times."

The People Power Party clearly stated that expenditure restructuring should come first to secure funds for the supplementary budget. The party’s Budget Committee members held a press conference that morning, criticizing the supplementary budget as essentially "election debt" and demanding expenditure restructuring instead of issuing deficit bonds. Ryu Seong-gil, the opposition party’s Budget Committee secretary, pointed out, "The government and ruling party claim that the supplementary budget is based on excess tax revenue and is debt-free, but of the 10 trillion won in excess tax revenue they claim, only 2.9 trillion won can be used as supplementary budget funds under the National Finance Act." He emphasized the urgency of expenditure restructuring to secure the supplementary budget funds.

In a meeting with reporters, Ryu said, "If support for small business owners and self-employed people is urgent, unnecessary budgets must be restructured through fiscal distancing," adding, "The government knows better than anyone the expenditure restructuring items in this year’s budget of about 607 trillion won." He also urged Democratic Party candidate Lee Jae-myung, saying, "Where were you during the government-party negotiations on the 14 trillion won supplementary budget proposed by the government?" and "Please clarify what efforts you made that resulted in only 14 trillion won."

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