Tripartite Council Kicks Off With Unity but Ends Without Agreement... "Further Talks on Extra Budget, Semiconductor Act to Continue" (Comprehensive)

Agreement on Principles for Supporting Livelihoods, Future Industries, and Trade
Timing, Scale, and Details to Be Determined in Working-Level Talks
Ruling Party Proposes Temporary Exception to 52-Hour Workweek
Opposition: Companies Request Greater Flexibility in Current System
Consensus on Raising Pension Premium Rate, Differences Remain on Income Replacement Rate

On February 20, 42 days after the proposal to establish a tripartite council between the ruling party, opposition party, and government, the leaders of each group joined hands and held their first meeting. However, the meeting ended after 116 minutes without any significant agreement. Nevertheless, they decided to continue discussions on major pending issues such as the supplementary budget (extra budget), the Special Semiconductor Act, and pension reform through working-level consultations.

Choi Sangmok, Acting President and Deputy Prime Minister for Economic Affairs; Woo Wonshik, Speaker of the National Assembly; Kwon Youngse, Emergency Committee Chair of the People Power Party; and Lee Jaemyung, leader of the Democratic Party of Korea, held the first tripartite council meeting at Sarangjae in the National Assembly on the afternoon of the same day.

As no agreement was reached on key issues, there was no joint statement. Instead, the Speaker of the National Assembly, the People Power Party, and the Democratic Party each delivered separate briefings on the outcome of the meeting.

Senior Secretary Park stated, "The leaders agreed on the necessity of an extra budget. They decided to further discuss the timing, scale, and details based on three principles: support for people's livelihoods, support for future industries such as artificial intelligence (AI), and support for trade." He added, "There was an in-depth discussion on the Special Semiconductor Act, and further discussions will take place at the working level." Park further explained that the handling of livelihood-related bills would also be discussed in working-level consultations along with the extra budget.

Yonhap News Agency

Cho Seungrae, chief spokesperson for the Democratic Party, said, "The People Power Party stated that they would demand restoration regarding the 2025 main budget cuts. Our party has proposed a 35 trillion won extra budget, so if both the government and the ruling party prepare their own extra budget proposals, we can put them on the table and discuss them."

Shin Dongwook, chief spokesperson for the People Power Party, also said, "Chair Kwon stated, 'It is necessary for the Democratic Party to express regret over the budget cuts made at the end of last year, and I hope that the essential budget items that were cut will be included in the discussions on the extra budget.' The Democratic Party responded that, if necessary, they would bring specific items to the next working-level meeting." He added, "While there is consensus on the need for an extra budget, it was not confirmed today whether consumption coupons related to people's livelihoods would be included, so we are not using the expression that an extra budget will definitely be implemented."

The parties also failed to narrow their differences over whether to include an exception to the 52-hour workweek in the Special Semiconductor Act. Chief spokesperson Shin said, "The People Power Party emphasized that including the exception to the 52-hour workweek is crucial, but the Democratic Party said it is not absolutely necessary."

Regarding the temporary introduction of an exception to the 52-hour workweek, Shin explained, "We also proposed trying it for about three years, but this was not accepted due to opposition from labor groups."

On the other hand, Chief spokesperson Cho said, "Speaker Woo stated that the requests from companies are not for a complete suspension of the 52-hour workweek, but rather for enhancing the flexibility and adaptability of the current system." He added, "No further discussion took place on this issue."

Regarding pension reform, the Democratic Party insisted on prioritizing parametric reform, while the People Power Party argued that structural reform should also be discussed. Both parties agreed on raising the insurance premium rate to 13%, but there were differences over the income replacement rate, so they decided to continue discussions, according to chief spokesperson Shin.

The prolonged vacancy of the Minister of National Defense was also raised as a problem, especially given the importance of national security. Chief spokesperson Shin said, "The vacancy of the Minister of National Defense is a major issue, and there were calls for the appointment of a minister due to the lack of a control tower for defense exports. However, differences on this issue were not narrowed." In response to a reporter's question about the Democratic Party's position on the appointment, Shin replied, "The Democratic Party does not believe it is absolutely necessary to appoint an additional Minister of National Defense."

In addition, the leaders of the ruling party, opposition party, and government agreed to establish a National Assembly Asia-Pacific Economic Cooperation (APEC) Special Committee and a National Assembly Ethics Special Committee. There was also consensus on establishing a climate special committee, but further discussions will be held on details such as legislative and budgetary functions.

Yonhap News Agency

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