Having passed the 'Budget Battle,' Lee Jae-myung and the Itaewon National Investigation Await

National Assembly to Hold Plenary Session on the 23rd Afternoon to Pass Budget Bill
Yoon Government's Key Bills Including Semiconductor Special Act Remain Uncertain
Lee Jae-myung Increases Constituency Budget by 500 Billion Won for Local Currency and Others

[Asia Economy Reporters Baek Kyunghwan and Lee Hyunju] Although the ruling and opposition parties agreed on the 23rd to hold a plenary session of the National Assembly and pass the Yoon Seok-yeol administration's first budget bill, the political situation is still likely to remain trapped in a cold wave.

Thanks to persistent persuasion by Speaker Kim Jin-pyo, the ruling and opposition parties have tentatively agreed on the New Year's budget bill, but key bills related to the Yoon Seok-yeol administration's economic policies are still likely to remain pending in the National Assembly. In particular, the Semiconductor Special Act, an amendment to the Restriction of Special Taxation Act that expands tax credits for investments in national advanced strategic industry facilities such as semiconductors, was expected to be passed along with the budget bill at the plenary session that day, but no discussions took place between the parties. Joo Ho-young, floor leader of the People Power Party, told reporters at the National Assembly in the morning, "We requested the submission of related bills, but since the Democratic Party insisted on submitting all other bills they demanded, no discussion has taken place."

The same applies to other contentious bills. Urgent 'sunset bills'?such as the safety freight rate system for cargo trucks and the additional 52-hour workweek system for workplaces with fewer than 30 employees?are also uncertain in their passage amid the intense standoff between the ruling and opposition parties. Floor leader Joo said, "We are supposed to pass the agreed bills, but there is no agreement yet," adding, "We have just decided to reach an agreement now."

On the day before the ruling and opposition parties agreed on next year's budget, the prosecution summoned Lee Jae-myung, the Democratic Party leader, over allegations of sponsorship funds related to Seongnam FC. The Democratic Party appears to have agreed on the budget amid criticism that the budget was being held up due to Lee Jae-myung's judicial risks while the economic crisis is approaching next year. However, given the current political structure of a ruling minority and opposition majority, confrontation between the parties is expected to continue. Especially with the 2023 National Assembly general election approaching, both parties need to gain public opinion leadership, which could further intensify conflicts.

There is an immediate possibility of clashes between the ruling and opposition parties over differing views on the Itaewon disaster parliamentary investigation. The special committee for the parliamentary investigation resumed normal operations with the return of People Power Party members and the first on-site investigation on the 21st, but no general witnesses have been adopted yet. The Democratic Party is already pushing to summon Prime Minister Han Duck-soo, who was embroiled in controversy over inappropriate remarks early in the disaster, as a witness, while the People Power Party is demanding that Democratic Party lawmaker Shin Hyun-young, involved in the controversy over riding the 'Doctor Car' at Myongji Hospital, be summoned as a witness, leading to a power struggle. If the Democratic Party initiates impeachment proceedings based on the parliamentary investigation results confirming Minister Lee Sang-min's 'illegal reasons,' the political situation is expected to deteriorate sharply once again.

Meanwhile, the Presidential Office has gone into silence mode since the day before the New Year's budget agreement. Although President Yoon Seok-yeol encouraged the Prime Minister and aides by saying, "Let's uphold principles until the end," the budget was finalized after intense strategic negotiations between the ruling and opposition parties, each making concessions. Inside the Presidential Office, there were reactions of 'regret,' but the atmosphere sensed was that "at least the government's second-year administrative momentum has been secured." Some ministries have begun reviewing the new budget and revising their New Year's work reports.

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