"No More Concessions"... Ruling and Opposition Parties Enter 'Endurance' Until Year-End

Deadlock Repeated in Ruling and Opposition Budget Negotiations
Corporate Tax Cuts and Police Bureau, Personnel Information Management Unit Budgets Contested
Budget Approval Uncertain if Previous Day's Floor Leaders' Meeting Fails

[Asia Economy Reporters Oh Ju-yeon and Geum Bo-ryeong] The political standoff between the ruling and opposition parties over next year's budget bill is expected to continue until the end of the year. Although the two sides had narrowed many gaps during previous behind-the-scenes negotiations, they remain deadlocked over two key issues: the corporate tax cut and the budgets for the Police Bureau and the Personnel Information Management Unit. As a result, no progress has been made since then. Even on the 20th, two days after Speaker Kim Jin-pyo's final ultimatum, the ruling and opposition parties only engaged in a blame game with no change from the previous day's situation, resulting in a stalemate.

Park Hong-geun, floor leader of the Democratic Party of Korea, is attending the floor strategy meeting held at the National Assembly on the 20th. Photo by Yoon Dong-joo doso7@

On the same day, Joo Ho-young, floor leader of the People Power Party, said at a floor strategy meeting held at the National Assembly, "It has been a long time since the budget passed the legal deadline, but there is no change from yesterday's situation today." However, he left open the possibility of a meeting between the floor leaders of both parties mediated by the Speaker. After the meeting, Joo told reporters, "(A meeting between the floor leaders) is not currently planned, but we are requesting mediation through the Speaker."

Following a three-party meeting last weekend with Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, progress was made on six to seven issues including local currency and basic pensions, narrowing the remaining budget negotiation issues to the corporate tax cut and the budgets for the Police Bureau and the Personnel Information Management Unit. Among these, it is understood that the corporate tax cut issue is also approaching a compromise.

On the previous day, Floor Leader Joo said regarding the corporate tax cut, "We have reached a stage where some consensus can be seen," suggesting the possibility of negotiation between the ruling and opposition parties on the extent of the corporate tax cut, which is one of the key issues. However, on this day, Joo stated about the corporate tax agreement, "Since it is a comprehensive compromise rather than an agreement on each item, even if there is a tentative agreement, it is meaningless unless the entire agreement is reached," indicating that further deliberation is needed before a final deal.

The Democratic Party advocates a 1 percentage point cut in the top corporate tax rate as proposed by the Speaker's mediation plan, while the People Power Party demands a 3 percentage point cut. It is expected that a compromise may be reached by expanding the taxable income brackets to which the corporate tax cut applies or by finding a middle ground between the reduction rates proposed by both parties.

Accordingly, there was speculation about a dramatic resolution through last-minute negotiations, but with the cancellation of the floor leaders' meeting the previous day, the budget bill process has again fallen into uncertainty. The Democratic Party is urging the People Power Party to accept the Speaker's mediation plan. If they do not accept it, the Democratic Party demands that they provide reasons and alternatives.

On the same day, Park Hong-geun, floor leader of the Democratic Party, said at the morning floor strategy meeting, "The People Power Party must fully accept the 'Speaker's mediation plan' even at this late stage." He criticized, "The ruling party is only concerned about watching Yongsan at this moment," and added, "As a member of the legislative branch, they should first clearly state their official position on the 'Speaker's mediation plan,' and if they do not accept it, they must explain the reasons." He repeatedly emphasized to the Speaker, "Set a deadline, and if the ruling party does not accept it, immediately convene a plenary session to process either the Speaker's mediation plan, the Democratic Party's revised plan, or the government's original proposal."

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