Why Acting Chief Choi is Speeding Up the Supplementary Budget... Different Calculations Among Ruling, Opposition, and Government

Discussion on Supplementary Budget and More at Next Week's Policy Consultation
Government Seeks Passage Alongside Semiconductor Act
Ruling and Opposition Parties, Government Remain Divided... "Big Picture First"

Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Economy and Finance, is reviewing documents at the 'Ministerial Meeting on National Issues, Economic Affairs, and Industrial Competitiveness Enhancement' held at the Government Seoul Office Building on the 5th. Photo by Yonhap News.

Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Strategy and Finance, is accelerating the preparation of the supplementary budget. As Lee Jae-myung, leader of the Democratic Party of Korea, is showing a 'rightward shift' regarding the government's key task of the Semiconductor Special Act, it appears that the government is responding with a supplementary budget that the opposition desires. However, there is also analysis that due to differing calculations among the ruling party, opposition, and government regarding the detailed items of the supplementary budget, it will be difficult for discussions starting next week to progress quickly.

A government official said in a phone call on the 5th, "The government has been advocating for the passage of the Semiconductor Special Act since last year, but Lee Jae-myung had not taken any particular action until recently, when he took a step suggesting that an exemption from the 52-hour workweek might be necessary for semiconductor researchers," adding, "The bill is ready, so the intention is to pass it quickly and simultaneously discuss the supplementary budget that the opposition wants."

Until the end of last year, Acting President Choi said, "We are not reviewing supplementary budget projects," but last month he opened the possibility by saying, "The National Assembly and government can discuss it together." Then, the day before, he said, "Additional fiscal input is not sufficient even if started immediately." His stance on the supplementary budget has shifted rapidly to a more favorable position within two to three months, and it is explained that Lee's 'rightward shift' also influenced this.

The deteriorating global trade environment and sluggish domestic demand also seem to have influenced Acting President Choi's judgment. With former U.S. President Donald Trump recently opening the 'tariff war,' the Korean economy, which is highly dependent on exports, is likely to be significantly affected. Due to the domestic political environment, Acting President Choi has not even been able to schedule a call with President Trump yet, so he needs to find a practical breakthrough for economic recovery through the supplementary budget.

However, looking more closely, there remains a significant gap in the positions of the ruling party, opposition, and government regarding the supplementary budget, making discussions unlikely to be easy. First, the Democratic Party insists that the government and ruling party should prepare the supplementary budget plan first, but the government firmly holds that consensus between the ruling and opposition parties must come first. A Ministry of Strategy and Finance official said, "At this point, there is a concern that the supplementary budget plan might take on political colors," adding, "It is better for the ruling and opposition parties to draw a big picture first through the national policy consultation starting next week."

The scale and composition of the supplementary budget are also problematic. Although Lee Jae-myung stepped back by saying he could give up the livelihood recovery support fund to prepare the supplementary budget, the ruling and opposition parties are still at odds over areas that must be included, such as artificial intelligence (AI) and the Great Whale Project budget. At the Supreme Council meeting that day, Lee criticized, "Even if the government says, 'We will do the supplementary budget, so opposition, please help,' it is already insufficient, yet the opposition attaches conditions to the supplementary budget they propose," adding, "Is this a transaction? I do not understand."

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