Supplementary Budget Bill, Opposition's 'Election Purpose' Objection, Ruling Party Likely to Pass Alone

Today, Ruling and Opposition Parties Hold Consultations
Ruling Party Emphasizes Pre-Support Based on Government Proposal
Candidate Lee Also Stresses 'Swift Processing'
Opposition Refuses Agreement Without Spending Restructuring

Prime Minister Kim Boo-kyum is delivering a policy speech related to the supplementary budget at the National Assembly plenary session on January 27. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Hyunju Lee, Gimin Lee] On the 17th, the ruling and opposition parties began renegotiations over the supplementary budget (추경) bill. The People Power Party (PPP) opposes the “election-oriented supplementary budget,” but the ruling party is emphasizing advance support based on the government’s proposal, raising the possibility of passing it unilaterally next week.

According to political circles, the Special Committee on Budget and Accounts will hold consultations among the ruling and opposition parties in the afternoon regarding the supplementary budget bill, estimated at “16 trillion won + α.” The party secretaries will meet first, followed by the participation of Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, to coordinate opinions at the ruling-opposition-government level.

Although negotiations remain uncertain, if the opposition party ultimately opposes the government and ruling party’s supplementary budget bill, the ruling party’s unilateral passage cannot be ruled out. The PPP has not budged from its position on the 46 trillion won scale, including a 10 million won loss compensation support fund, and Lee Jae-myung, the Democratic Party’s presidential candidate, recently emphasized the need for swift passage of the supplementary budget during regional campaigns. For the ruling party, passing it before the presidential election is urgent.

The Democratic Party initially advocated for a 35 trillion won scale but recently shifted to a position supporting the government’s plan to provide 3 million small business owners with 3 million won each and to supplement the support amount after the supplementary budget bill is passed.

However, the political consensus is that it is not yet time to discuss unilateral passage. If the supplementary budget is passed unilaterally for partial support, it could face a backlash from public opinion. A ruling party official said, “It goes without saying that resolving the difficult conditions of small business owners is urgent, and for the budget to be executed before the presidential election, the assembly must be convened even tomorrow and a plenary session held,” but added, “So far, there has been no schedule for unilateral supplementary budget passage within the party.” Democratic Party spokesperson Shin Hyun-young also said, “Since the chair of the Budget Committee is from the opposition party, if they do not convene the session, the Democratic Party lacks the legal grounds to forcibly pass the supplementary budget.”

The People Power Party maintains its position that it is difficult to agree to the supplementary budget bill unless the government prepares the 10 million won loss compensation support fund it requested and secures funding through expenditure restructuring. Ryu Seong-geol, the opposition party secretary of the Budget Committee, questioned, “Why did the Democratic Party and candidate Lee suddenly back down from the 35.5 trillion won they demanded? What part of the supplementary budget is not urgent? The ruling and opposition parties should agree on the scale of the supplementary budget as a matter of urgency and tell the government to secure the funds, but what are these tens of trillions of won in less urgent supplementary budgets?”

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