Budget Agreement Met with Yongsan's 'Silence'... Mixed Reactions of Disappointment and 'Momentum Secured' Evaluation

-Previous Day's Ruling and Opposition Parties Budget Agreement... Despite Fierce Power Struggles, President Yoon and Aides All 'Disappointed'
-Voices Focused on 'State Administration' Despite Silence... Some Ministries Coordinate Work Reports with Presidential Office

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] The Presidential Office fell silent on the ruling and opposition parties' agreement on next year's budget bill on the 22nd. Although President Yoon Seok-yeol urged Prime Minister and aides to "stick to principles until the end," the budget was finalized with each side making concessions after intense strategic battles. Inside the Presidential Office, there were reactions of regret alongside opinions that "the government’s second-year momentum has been secured." Some ministries have begun revising their New Year work reports while reviewing the new budget.

On the 23rd, according to the Presidential Office and government ministries, the Presidential Office is reviewing the budget bill and supplementary budget-related bills agreed upon by the ruling and opposition parties. A Presidential Office official stated that although President Yoon and his aides are not satisfied with the agreed budget, the review is not to change the agreement but to examine the budget linked to key national tasks for next year and to consult with the relevant ministries.

There are many voices expressing regret over the budget concessions made by both sides. This is because President Yoon, while saying "I apologize to the people," urged to uphold principles for the sake of propriety, having consistently maintained a "principled stance" during the handling of the Cargo Solidarity general strike and the implementation of the three major reforms (labor, education, pension). Earlier, the Presidential Office considered making a brief statement after the agreement but ultimately chose silence for the same reason.

However, opinions have emerged that the government has secured some momentum for its second year of governance despite the unfavorable political situation of a minority ruling party. Regarding the most contentious corporate tax cut, instead of the government and ruling party’s proposal to reduce the top corporate tax rate by 3 percentage points, it was adjusted to a 1 percentage point reduction for each tax bracket, broadening the scope of the cut and creating room for further improvement of the corporate tax system.

The Ministry of the Interior and Safety’s Police Bureau and the Ministry of Justice’s Personnel Information Management Unit, which will serve as the foundation for the Yoon administration’s second-year government organization operation, saw their budgets halved but secured legal grounds. A ruling party official said, "Since these organizations were created to ensure transparency and fairness within the government organization, they are expected to actively support national governance starting next year." Additionally, it is notable that the government’s plan for public housing loan projects, which President Yoon has been emphasizing amid repeated concerns about the "housing issue," passed as is.

In line with this, some ministries have started revising their New Year work reports to reflect the budget agreement. It has been confirmed that some ministries are coordinating with the Presidential Office on the schedule for advancing national tasks by incorporating newly allocated or revised budget items requested by the opposition party. A senior official from a ministry said, "It is right to prioritize policies promised to the people by the new government," but added, "Ultimately, since the implementation process will be fully revealed through next year’s national audits, we have no choice but to revise work reports and plans according to the agreement."

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