Presidential Office: "Livelihood Budget Overshadowed by Force"... Strong Criticism from the Giant Opposition

[Asia Economy Reporter Yoo Hyun-seok] The Presidential Office on the 23rd expressed the position that "the livelihood budget has been diminished due to being overpowered" in relation to the ruling and opposition parties' agreement on next year's budget.

The official stance was announced only the day after the agreement announcement (on the 22nd). Lee Jae-myung, Deputy Spokesperson of the Presidential Office, said at a briefing at the Yongsan Presidential Office building in the afternoon, "Although we had no choice but to reach an agreement amid a difficult national economy and concerns over external credibility, there are regrets."

He added, "We intended to serve the people by creating more jobs and injecting finances to revitalize the economy, but the livelihood budget was diminished due to the opposition party's power," emphasizing, "We are concerned whether the economic crisis can be overcome as is, but the Yoon Seok-yeol administration will quietly do its best."

While emphasizing the inevitability of the agreement, the evaluation was made that the government's budget plan's original intent has significantly regressed due to the 'power play' of the large opposition party holding the majority of seats in the National Assembly.

The Presidential Office had refrained from publicly commenting on the budget negotiation process so far, but it has been coordinating through frequent communication not only with the People Power Party, the negotiation party, but also with Deputy Prime Minister for Economy Choo Kyung-ho, Prime Minister Han Duck-soo, and National Assembly Speaker Kim Jin-pyo.

It is known that there was a strong consensus within the ruling party, especially that a 'quasi-budget' situation must be avoided. If the budget is not processed by the 31st and a quasi-budget is prepared from January 1 of the new year, there are concerns that it could lead to issues with external credibility.

It appears that multiple opinions were conveyed to President Yoon emphasizing the need to prevent a catastrophe caused by the prolonged budget stalemate.

Kim's office stated that Speaker Kim met with President Yoon Seok-yeol on the occasion of the National Breakfast Prayer Meeting on the 5th and expressed opinions on the difficulties of the Korean economy and the risks of a quasi-budget like the US 'shutdown.' It was also reported that during this meeting, Speaker Kim expressed the view that the position of Minister of the Interior and Safety Lee Sang-min should not become an obstacle to state administration, drawing attention.

On the 21st, Speaker Kim also reportedly urged President Yoon through Presidential Chief of Staff Kim Dae-gi and Senior Secretary for Economic Affairs Choi Sang-mok to report on the urgency of the budget agreement and the risks of a quasi-budget, which was disclosed on the same day.

The Presidential Office appears regretful that despite this close coordination process, the government's national policy direction was not sufficiently reflected.

The Presidential Office also emphasized that corporate tax, capital gains tax on stocks, and heavy taxation on multiple homeowners fell short of the government's original 'tax cut' goals, explaining, "All of this was thwarted by ideological arguments labeling it as 'tax cuts for the rich,' and ultimately, it may be passed on to powerless ordinary citizens and the vulnerable. That is the regrettable part."

It is known that the Presidential Office, which had remained silent for over a day, finally issued a statement following President Yoon's directive that it is necessary to accurately explain the government's position on the agreement results to the public.

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