Even on D-1, Ruling and Opposition Parties' 'Budget Negotiations' Remain at an Impasse... Opposition Party Unafraid to Propose Unilateral Amendments

Chairman Kim Jin-pyo Sets Budget Bill Deadline: Only One Day Left Until the 15th

[Image source=Yonhap News]

[Asia Economy Reporter Park Junyi] Although the opposition party set the 14th as the deadline for budget agreement, there is still no progress in the negotiations. The ruling and opposition parties remain at a 'parallel line,' unable to find common ground over issues such as corporate tax cuts. If negotiations do not take place by the evening, the opposition plans to propose a unilateral amendment before tomorrow's (15th) plenary session.

Kim Seonghwan, the Policy Committee Chair of the Democratic Party of Korea, stated in a phone interview with Asia Economy, "If negotiations are not successful by today, there is no change in the position to propose a unilateral amendment tomorrow," and added, "We will continue negotiations until today," showing a firm stance. Earlier in the morning, Park Honggeun, the floor leader, held a press briefing and planned to send a message urging cooperation from the ruling party under the principle of 'blocking ultra-rich tax cuts.'

However, the ruling and opposition parties are still running on parallel tracks regarding the key issue of corporate tax, making negotiations difficult. Previously, the People Power Party urged acceptance of the Speaker Kim Jinpyo's mediation proposal, which included a '3% corporate tax cut with a 2-year grace period,' but the Democratic Party has not backed down. The two parties' floor leaders held a private meeting chaired by the Speaker the previous afternoon but failed to narrow their differences.

Regarding this, Sung Iljong, the Policy Committee Chair of the People Power Party, said on KBS Radio's 'Choi Kyungyoung's Strong Current Affairs' program, "We are prisoners of the outdated ideology of ultra-rich tax cuts, so negotiations have not moved forward at all," and explained, "Although tax revenue may be slightly lower immediately, in the long run, it is a system worth implementing. We hope the Democratic Party will review it positively." On the other hand, Kim, the Policy Committee Chair, said about the ruling party emphasizing the Speaker's mediation proposal, "The Democratic Party cannot accept it," and added, "There is no progress in negotiations."

[Image source=Yonhap News]

Despite the reduction plan prepared by party leadership including Representative Lee Jae-myung under the principle of 'tax cuts for the common people,' the People Power Party is firmly opposing it. The core of this reduction plan is to pursue partial reductions in corporate tax, comprehensive income tax, and tax special cases, and to cut the budget for government organization operations under the Yoon Seokyeol administration. However, the previous day, Joo Ho-young, the floor leader of the People Power Party, criticized at the party's floor strategy meeting, saying, "They raised taxes with a tax bomb during their own administration and now call a slight cut 'tax cuts for the common people,'" and stated a de facto refusal to negotiate by urging, "Stop obstructing the government using the budget as a hostage immediately, and cooperate so that budgets for the common people and struggling businesses can be executed immediately."

The Democratic Party has already prepared a unilateral amendment focused on reductions. The previous day, Floor Leader Park delivered the contents of the amendment to Speaker Kim and discussed it. After the meeting of floor leaders chaired by the Speaker, he stated, "As already announced, we have been accelerating the work to create a reduction-focused amendment, and it is now almost complete." It is reported that the Democratic Party designed the amendment in advance since September in anticipation that the government and ruling party would insist on a supplementary budget. A senior party official explained, "Since the ruling party mentioned a supplementary budget as early as September, the party has been preparing an amendment," and added, "We have already prepared an amendment spanning 300 pages, and there are no parts violating budget regulations, so it will be difficult for the government and ruling party to block it."

Therefore, if negotiations are not completed by the evening at the latest, the Democratic Party plans to propose a unilateral amendment before tomorrow's plenary session. Since Speaker Kim stated, "On the afternoon of the 15th, the National Assembly plenary session will be held, and the budget submitted then, whether it is the government proposal or the Democratic Party's, must be processed," there is a high possibility that the amendment will be passed along with the convening of the plenary session that day.

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