The Season of Slush Funds, Lawmakers Hit the Jackpot if Backdoor Deals Are Exposed

New Era of 600 Trillion Won New Year Budget, Persistent Controversy Over Secret Budget Notes
Political Backroom Deals, Politicians Still Rated for Securing Local Projects Despite Exposure

[Asia Economy Reporter Ryu Jeong-min] Every December, a political backdoor deal known as the 'jjokji budget' circulates around the Yeouido National Assembly. It refers to the practice where tens or hundreds of millions of won are processed without any special review during the new year's national budget approval process.

The term 'jjokji budget' arises because the principles of budget approval are often shaken during the National Assembly Budget and Accounts Special Committee's budget review and the final negotiations between the ruling and opposition party floor leaders. Budgets are sometimes increased or cut through behind-the-scenes negotiations between the committee chair and party secretaries. This loophole is exploited by the jjokji budget. It even appears in National Assembly reports.

The National Assembly Innovation Advisory Committee explained in a report released in May 2020 that "'Jjokji budget' refers to the practice where lawmakers hand over 'jjokji' (notes) containing requests to increase their constituency budgets during the Budget and Accounts Special Committee's budget review process, which are then reflected in the budget."

[Image source=Yonhap News]

The National Assembly Innovation Advisory Committee stated, "The recipients of these notes are the chair of the Budget and Accounts Special Committee, the ruling and opposition party secretaries, or members of the Budget Adjustment Subcommittee of the Budget and Accounts Special Committee," adding, "Constituency-focused budgets mainly consist of social overhead capital (SOC) budgets such as road construction or expansion of local convenience facilities."

The reason lawmakers strive to participate in the Budget and Accounts Special Committee, especially for key positions like the committee secretaries, is that these roles are directly linked to their political careers. Constituency lawmakers are judged by their ability to secure budgets for their districts. Politicians who successfully obtain local complaint-driven budgets are regarded as effective.

Even proportional representation lawmakers who aspire to be nominated in specific regions cannot ignore local budgets. Demonstrating that they secured a certain amount of budget through their political capabilities serves as useful promotional material. In fact, in the era of a 600 trillion won national budget, it is not easy to meticulously track how tens of millions of won are allocated and spent.

Even when the new year's budget is approved, the public generally pays attention only to the overall budget and major categories, rarely focusing on the detailed contents. The issues surrounding the jjokji budget are not new.

Professor Kang Jang-seok of Kookmin University published a report titled 'Measures to Strengthen the National Assembly's Practical Budget Review Capacity' ten years ago in 2012. Professor Kang argued, "To eradicate the 'jjokji budget' practice, each party should submit and disclose a 'list of increased projects' after internal review."

Professor Kang explained, "The Budget and Accounts Special Committee's increase review should be conducted only based on the preliminary review results of standing committees and each party's list of increased projects," adding, "All details related to the increase review should be included in the materials and recorded in the minutes to legitimize the increase review process."

Despite ongoing efforts by experts to eliminate the jjokji budget, the problem persists even after ten years.

If the jjokji budget issue worsens, lawmakers who play fair will be disadvantaged. Lawmakers who adhere to the principle of allocating the national budget appropriately are labeled incompetent politicians, while those who deliver 'budget bombs' to their constituencies are seen as capable.

Lawmakers may fear repercussions if caught exchanging jjokji budgets, but in their constituencies, they are often praised for their hard work on behalf of the region. Although this behavior poses problems from the perspective of efficient national budget use, from the local standpoint, these politicians are regarded as effective for securing necessary budgets.

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