Opposition Defying 'Market Order'... Yoon Also Expresses Concern

Government Forces 'Grain Management Act' Mandating Excess Rice Purchase Alone
Yoon Also Says "Not Helpful to Farmers"... Joo Ho-young "Is It Only a Privilege for Rice Farmers?"
High Possibility of Forcing 'Yellow Envelope Act' and Basic Pension Act as Well

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 17th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Lee Ji-eun, Bae Kyung-hwan, and Sejong correspondent Son Seon-hee] The reckless actions of the 169-seat giant opposition party are threatening market order. After forcibly passing the government's mandatory rice purchase bill at the full committee meeting, it is widely believed that other bills opposing market principles will also pass soon. The giant opposition party appears determined to push through the 'Yellow Envelope Act,' which limits lawsuits against union strikes, and the 'Basic Pension 400,000 won' bill, which lacks clear funding sources.

When the Democratic Party of Korea unilaterally passed the amendment to the Grain Management Act, which includes mandatory rice purchases, at the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee meeting on the 19th, criticism arose from political and economic circles that it goes against market principles.

President Yoon Seok-yeol said to reporters on his way to the Yongsan Government Complex on the 20th, "If the law mandates purchases, the gap between supply and demand will widen, and the excess supply will eventually have to be discarded. This will lead to serious waste of agricultural finances." He added, "That money (budget) should be used for rural development, and I think this (Grain Management Act) does not help farmers." On the same day, Joo Ho-young, floor leader of the People Power Party, pointed out at the party's emergency committee meeting, "It is a very bad law that gives special favors only to rice farmers and takes away shares from other farmers who do not grow rice."

The government's support for rice farming has changed several times. After the purchase system of buying at high prices and selling at low prices, known as the Chugok Purchase System, was abolished as a reduction subsidy under the WTO, the government tried various methods such as the Public Stockpiling System, which buys at market prices, the Variable Direct Payment System that compensates for price drops, and later the Public Interest Direct Payment System that moved away from rice and large-scale farming. While national-level support to sustain farm income is inevitable, the overall trend was an effort to align with market principles.

However, the current mandatory purchase policy nullifies the government's market-friendly efforts in rice support. Jeon Han-young, Food Industry Policy Officer at the Ministry of Agriculture, Food and Rural Affairs, emphasized, "From the farmers' perspective, the crops they grow must be chosen by consumers, that is, the public. Simply increasing production and receiving money through the budget is not the end. If the gap between demand and production grows, it will ultimately harm the rice industry and agriculture as a whole."

[Image source=Yonhap News]

The amendment to the Grain Management Act is likely to be the beginning of the passage of market-opposing bills. The Democratic Party is strongly signaling the passage of the 'Yellow Envelope Act,' one of the '7 major legislations' set as party policy, as well as the amendment to the Basic Pension Act. The Democratic Party is showing its determination to pass these bills within the current regular session of the National Assembly in cooperation with the Justice Party. The Korean Confederation of Trade Unions also held a rally with 4,000 participants in front of the National Assembly on the 19th to pressure for passage.

The business community is concerned that the Yellow Envelope Act is not only potentially unconstitutional but may also encourage strikes. A representative from the Korea Employers Federation said, "It is an attempt to legislate all long-standing demands of the labor sector at once, ignoring Korea's labor law system, general legal order, and the reality of labor-management relations." He criticized, "The idea that all demands of the labor sector should become subjects of labor disputes and that liability for damages should be limited even if illegal acts are committed is a claim that cannot gain public support and is only their own assertion."

An official from the Ministry of Employment and Labor also pointed out, "It does not align with existing legal systems such as civil law," and warned, "It could be an excessive infringement on property rights and may violate the constitution."

The amendment to the Basic Pension Act, which increases the basic pension payment from 300,000 won to 400,000 won, poses a significant problem as it increases the national burden. This bill is so closely associated with Lee Jae-myung, leader of the Democratic Party of Korea, that it is called the 'Lee Jae-myung Basic Pension.' Without careful consideration of funding, increasing costs could lead to a debt bomb.

Within the ruling party, some attribute the giant opposition party's push to distort the market through these bills to Lee's 'judicial risk.' On the previous day, Lee Yang-su, a member of the People Power Party, criticized during a procedural speech before the passage of the Grain Management Act, saying, "They are trying to block Lee's judicial risk with other issues."

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