Park Chan-dae: “Quick Processing of the Budget Bill to Eliminate Uncertainty”
First Time in Constitutional History: Opposition Party Alone Processes ‘Reduced Budget Bill’
Budget-related Bills such as Abolition of Financial Investment Income Tax Also Proposed
Speaker’s Office: “No Decision on Proposal Yet,” Leaving Room for Negotiation
On December 9, the Democratic Party of Korea reaffirmed its plan to process the 2025 budget bill in the National Assembly on December 10. The party argues that handling it alone has become inevitable due to worsening economic conditions caused by President Yoon Suk-yeol’s December 3 martial law situation, and the announcement of resignation by People Power Party’s floor leader, Chu Kyung-ho. However, National Assembly Speaker Woo Won-shik is cautious about setting a precedent of processing a budget bill proposed by the opposition alone.
Park Chan-dae, the floor leader of the Democratic Party, stated, “The uncertainty triggered by President Yoon Suk-yeol’s December 3 insurrection situation and amplified by the failure to impeach is significantly harming the domestic economy. To minimize national confusion and damage to the public, we must quickly eliminate uncertainty.” He emphasized that the party aims to pass the next year’s budget promptly to help the administration prepare for state management in advance.
Party leader Lee Jae-myung also mentioned in a press conference the previous day that it would be desirable to process the budget bill by the 10th. A core Democratic Party official noted that they had strongly conveyed to the Speaker’s office their wish to present the budget bill on the 10th’s plenary session.
On November 29, the Democratic Party independently processed next year’s budget bill, reducing it by 4.1 trillion won, including special activity expenses for the prosecution and the presidential office, at the National Assembly’s Special Committee on Budget and Accounts. Although the party initially planned to pass the reduced budget bill alone at the December 2 plenary session, Speaker Woo urged continued negotiations until the 10th for bipartisan agreement.
However, given the uncontrollable situation with the government and ruling party after President Yoon’s martial law proclamation on the 3rd, the Democratic Party decided to independently process next year’s budget bill. Moreover, in the revised proposal passed by the committee, they plan to further reduce an additional 700 billion won in expenses related to the presidential office.
Spokesperson Hwang Jeong-ah told reporters after the Supreme Council meeting, “Following this martial law situation, there was a prevailing opinion that the presidential office expenses should be further reduced.” However, some voices caution that attempts for further budget cuts during President Yoon’s impeachment situation could unnecessarily provoke controversy.
The Democratic Party also plans to handle the next year’s budget bill and around 35 budget-related bills, including 28 tax amendment bills, alone in the December 10 plenary session. The party decided to vote down the government’s proposals to lower the highest inheritance tax rate and to separately tax dividend income but will pass the income tax law including the repeal of the financial investment income tax and deferral of virtual asset taxation.
The key issue lies with Speaker Woo, who holds the authority to present next year’s budget bill. A spokesperson for the Speaker’s office stated, “No decision has been made yet regarding the proposal,” suggesting negotiation time remains. Spokesperson Hwang also explained, “The Speaker’s office inquired, ‘Can it be processed on the 10th, or should it be slightly delayed?’” Within the party, there are calls for leaving room for negotiation with the government and ruling party concerning budget increases.
In relation to this, Cho Seung-rae, the Chief Spokesperson of the Democratic Party, mentioned, “The Ministry of Economy and Finance and the ruling and opposition parties are currently meeting,” adding that “if some agreement is reached between the ruling party and the government, adjustments can certainly be made.”