Despite Calls for Economy and Livelihood... Concerns Over 'Political Strife' Amid Minority Government Situation

Major Bills Already Facing Power Struggles
Comprehensive Real Estate Tax Act Passes Partially

[Asia Economy Reporters Lee Ji-eun, Na Juseok, Gu Chae-eun] The ruling and opposition parties are united in prioritizing the passage of livelihood-related bills during this regular session of the National Assembly. However, they have already begun power struggles over major bills such as the Comprehensive Real Estate Tax Act and the Semiconductor Special Act, undermining the 'livelihood first' policy. The ruling party faces a numerical disadvantage and even a leadership vacuum, while the opposition is responding to the prosecution's investigation targeting party leader Lee Jae-myung with a 'Special Investigation on Kim Geon-hee,' raising concerns that the session could turn into a battleground for political conflict.

A clear example is the Semiconductor Special Act (Partial Amendment to the Special Measures Act on Strengthening and Protecting National Advanced Strategic Industry). According to the National Assembly on the 1st, the bill, led by the People Power Party's Semiconductor Special Committee, was not submitted to the full meeting of the Industry, Trade, and Small and Medium Venture Business Committee that day. Without submission, the bill cannot be discussed. Han Mu-kyung, the ruling party's secretary of the Industry Committee, said in a phone call, "It is difficult to submit it today as negotiations are ongoing." Initially, People Power Party members of the Industry Committee insisted that the Semiconductor Special Act, which includes the authority to establish specialized clusters, should be submitted during the regular session, but the Democratic Party blocked the submission citing a reflection period, and no compromise has been reached.

The Comprehensive Real Estate Tax Act, which also faced difficulties during the August extraordinary session, failed to find a clear direction and ended up being only partially processed. The People Power Party proposed lowering the tax threshold for single-homeowners from 1.4 billion won to 1.2 billion won in response to the opposition's 'tax cut for the rich' frame, but this was ultimately rejected.

The ruling party's key agenda of lowering the corporate tax rate faces strong opposition from the Democratic Party, which clearly states it will block it, labeling it a 'tax cut for the rich.' The Democratic Party also declared at a recent lawmakers' workshop, "We will firmly block Yoon Seok-yeol's harmful laws that could push livelihoods into crisis," adding, "We will also block tax cuts for the rich, welfare reductions that could increase burdens on ordinary citizens, cuts to health insurance benefits, and reckless deregulation in environmental and labor sectors." Kim Seong-hwan, the Democratic Party's Policy Committee Chair, also said, "Tax cuts for the rich must be corrected."

The ruling party has no clear countermeasures against the opposition's offensive. After the party's floor strategy meeting, Seong Il-jong, the People Power Party Policy Committee Chair, told reporters, "(Regarding corporate tax) we have already raised our proposal, so all we can do now is negotiate with the other side," adding, "They call it a 'tax cut for the rich,' but we must continue negotiating to get it accepted."

Besides this, the opposition has expressed its determination to block so-called 'executive order politics,' such as the enforcement decree for restoring prosecution investigation rights, through the National Assembly Act and other means. They have also demanded a state audit on 'allegations related to the presidential office and residence and private hiring suspicions' and plan to escalate responses to issues like the 'Special Investigation on Kim Geon-hee' depending on public opinion trends. This raises the possibility that the regular session could escalate into a political conflict arena. However, on current issues jointly pursued by both parties, such as the 'Delivery Price Linkage System,' which automatically reflects raw material price fluctuations in delivery prices, agreement is expected to be relatively easier.

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