Blocking 'Chobujagamse' Tax Cuts, Advancing 7 Major Livelihood Bills... Opposition Raises Pressure on Ruling Party

Legislative and Budget Battles Begin
Ruling and Opposition Parties Engage in Full-Scale Power Struggle
Landmines Throughout the Regular National Assembly Session

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 23rd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] The Democratic Party of Korea has defined the Yoon Suk-yeol administration's corporate tax, comprehensive real estate tax, and capital gains tax reductions as "super-rich tax cuts" and is blocking them, while pushing forward the "7 Major Legislative Tasks for Livelihood," marking the start of a full-fledged power struggle. The People Power Party also opposes the Democratic Party's 7 legislative tasks, labeling them as "populism," making a direct confrontation over legislation and budget between the ruling party and the opposition inevitable.

On the 23rd, party leader Lee Jae-myung stated at the Supreme Council meeting held that day, "At yesterday's party meeting, we decided as a party stance to definitely block the super-rich tax cuts," and criticized, "They cut 60,000 senior job budgets citing budget shortages, but instead of increasing, where are those people supposed to go?"

Earlier, on the 22nd, the Democratic Party defined the Yoon Suk-yeol administration's tax reform plan as "super-rich tax cuts" at a party meeting and set opposition to related law amendments as the party stance. This includes not passing laws in the National Assembly that lower the top corporate tax rate from 25% to 22%, raise the capital gains tax exemption threshold from 1 billion KRW to 10 billion KRW, and abolish the comprehensive real estate tax surcharge rate for multi-homeowners.

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the joint meeting of provincial party chairpersons held at the National Assembly on the 20th, delivering a greeting./Photo by Yoon Dong-joo doso7@

Joo Ho-young, floor leader of the People Power Party, is attending the floor strategy meeting held at the National Assembly on the 23rd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

While opposing tax cut-related bills, they also expressed intent to push forward legislative tasks. Park Hong-geun, the Democratic Party floor leader, said, "The People Power Party calls livelihood legislation bad laws, but they should consider the desperation of small business owners going out of business and workers unable to afford loan interest," and questioned, "Are they sane to call the delivery price linkage system and the Yellow Envelope Act bad laws?" Park emphasized, "We will block the super-rich tax cuts and use the secured resources to increase livelihood budgets for vulnerable groups. We will ensure the smooth processing of livelihood legislation and budgets in response to the ruling party's incompetence and lack of measures."

The current "7 Major Legislative Tasks" promoted by the Democratic Party are △ Yellow Envelope Act △ Amendment to the Grain Management Act △ Expansion of Basic Pension Act △ Expansion of Childbirth, Childcare, and Child Allowance Act △ Three Bills on Household Debt Measures △ Introduction of Delivery Price Linkage System Act △ National Responsibility System for the Disabled Act.

However, since the People Power Party opposes all of the Democratic Party's legislative tasks, a strong confrontation between the ruling and opposition parties over legislative leadership seems inevitable. On the previous day at an emergency meeting, floor leader Joo Ho-young said, "The Democratic Party is recklessly issuing irresponsible populist policies such as increasing the basic pension and childbirth allowance. They even intend to forcibly pass these bills within the regular session," adding, "The pension system should be comprehensively integrated and structured overall, not handled carelessly one by one."

Seong Il-jong, the party's policy committee chairman, criticized in a statement, "They are dividing the country into two sides again, inciting conflict, splitting national power, and practicing typical Democratic Party-style 'divide and rule' politics that only protect their own side," and added, "They should not try to gain political advantage by using the hateful frame of super-rich tax cuts."

Joo Ho-young, floor leader of the People Power Party, is attending the party strategy meeting held at the National Assembly on the 23rd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

Jeong Jin-seok, Emergency Response Committee Chairman of the People Power Party, is attending the Emergency Response Committee meeting held at the National Assembly on the 22nd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

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