Ruling Party Announces Unilateral Passage of Supplementary Budget of 16 Trillion Won + Alpha

Delay in Ruling Party and Opposition Negotiations Leads to Judgment of "No More Delays Possible"
Includes Priority Payment of 3 Million Won per Business for Small Business COVID-19 Support Fund

[Asia Economy Reporters Oh Ju-yeon, Lee Hyun-joo, Kim Young-won] As negotiations between the ruling and opposition parties over the supplementary budget bill (추경) repeatedly stalled, the Democratic Party of Korea announced on the 18th that it would proceed with a unilateral passage. This decision was made based on the judgment that the supplementary budget containing quarantine support funds for small business owners cannot be delayed any longer amid the crisis situation where daily COVID-19 cases reach 100,000. The Democratic Party intends to first pass the government’s proposal of ‘16 trillion won + α’ and consider a second supplementary budget after the presidential election.

[Image source=Yonhap News]

On the 18th, Yoon Ho-jung, the floor leader of the Democratic Party, held an emergency press briefing in the main building of the National Assembly in the morning regarding the supplementary budget bill, stating, "This supplementary budget is a lifeline to save our people from the COVID-19 crisis," and added, "If the opposition continues to block the livelihood and quarantine budget, the Democratic Party will swiftly process the supplementary budget in consultation with the government on its own."

He explained that the revised supplementary budget submitted by the government the day before would be processed within the February extraordinary session, and additional support measures for self-employed and small business owners would be sought after the presidential election. In particular, presidential candidate Lee Jae-myung has pledged to activate an emergency financial order to ensure 50 trillion won in compensation support for small business losses, so a second supplementary budget after the election is also being considered. The government initially submitted a supplementary budget of about 14 trillion won but barely increased it by about 2 trillion won from the original plan due to demands from both ruling and opposition parties. If the Democratic Party processes the bill as per the government’s proposal, the scale of the small business quarantine support fund, which was the biggest challenge in this supplementary budget, will be fixed at ‘3 million won per business.’ However, the People Power Party remains firm on its demand for a 46 trillion won supplementary budget, including 10 million won in compensation support for small business losses, resulting in a deadlock.

Floor leader Yoon emphasized, "We also agree that the government’s 3 million won is insufficient, but the voices from the field are to at least quickly disburse the government’s amount and provide additional payments after the presidential election," and added, "Ignoring such requests is negligence of duty, and the National Assembly must act immediately." He also addressed the People Power Party, saying, "The Democratic Party has prepared supplementary budget funds for medical quarantine personnel support, care workers, home treatment staff, residential treatment, and paid leave, but it is delayed due to opposition from the opposition party," and urged, "They are not just blocking but restraining, so I ask them not to ignore the desperate requests of the people."

However, the People Power Party is expected to show a strong confrontation by issuing a separate statement on the same day. Ryu Seong-gil, the opposition party’s secretary of the Budget and Accounts Committee, said in a phone call, "Our position remains unchanged to support small business owners and the self-employed quickly and substantially through the supplementary budget," and added, "Since a Budget and Accounts Committee meeting is scheduled for 2 p.m. today, we expect to meet with the ruling party’s secretary to discuss naturally."

At the Budget and Accounts Committee meeting on the same day, the supplementary budget will be submitted, and on the 21st, the leaders of both parties will meet to conduct final negotiations for the plenary session submission. The government is also supporting the swift processing of the supplementary budget, so if negotiations between the ruling and opposition parties break down until the end, the ruling party’s unilateral submission in the plenary session is expected.

Prime Minister Kim Boo-kyum presided over the Central Disaster and Safety Countermeasures Headquarters meeting on COVID-19 in the morning and appealed, "Due to prolonged strengthened quarantine measures, small business owners and the self-employed nationwide are suffering day by day. It is practically a ‘disastrous situation,’" and urged, "Considering the urgency of support, the ruling and opposition parties should promptly negotiate, adjust, and finalize the supplementary budget bill submitted by the government."

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