Ruling and Opposition Agree on 608 Trillion Won Budget for Next Year... Plenary Session Faces Difficulties, Kim Ki-hyun Says "May Extend Past Midnight"

3.5 Trillion Won More Than Government Proposal
Conflict Over Light Aircraft Carrier and Local Currency

[Asia Economy Reporters Oh Ju-yeon, Park Jun-i] Next year's budget is expected to reach 607.9 trillion won, which is 3.5 trillion won more than the government's submitted proposal.

On the morning of the 2nd, Yoon Ho-jung, the floor leader of the Democratic Party of Korea, stated at a meeting, "The day before, the ruling and opposition parties agreed to set the 2022 national budget at 607.9 trillion won, including a 5.6 trillion won reduction in expenditures and a 4.7 trillion won increase in revenues."

Deputy Prime Minister for Economy Hong Nam-ki and Yoon Ho-jung, Floor Leader of the Democratic Party of Korea, attended a meeting at the National Assembly on the 30th to discuss next year's budget proposal, exchanging greetings before the start of the meeting. Photo by Yoon Dong-ju doso7@

In this budget, the minimum support amount for industries affected by COVID-19 was raised from the previous 100,000 won to 500,000 won. Additionally, a low-interest financial support plan worth 35.8 trillion won was introduced for industries not eligible for loss compensation. The issuance scale of local currency will be significantly expanded from the initial 6 trillion won to 30 trillion won. The budget for quarantine and medical resources will also be increased by 1.3 trillion won depending on the COVID-19 situation, securing more than 7 trillion won in total.

The Democratic Party is determined to pass this budget proposal in the plenary session today. Floor leader Yoon emphasized, "We will definitely process the livelihood budget today, the legal deadline set by the Constitution."

However, there are differences of opinion between the ruling and opposition parties regarding the Navy's light aircraft carrier (Light Aircraft Carrier) project, and difficulties are expected until the final negotiations. The Light Aircraft Carrier project was virtually cut entirely during the preliminary review of the National Defense Committee budget, leaving only 500 million won for indirect costs. The Democratic Party insists that the budget should include a minimum design cost of 4.3 billion won and 500 million won for indirect costs, totaling 4.8 billion won, but the People Power Party strongly opposes this, calling it a stalling tactic.

[Image source=Yonhap News]

Chu Kyung-ho, the senior deputy floor leader of the People Power Party, criticized the Light Aircraft Carrier project in a meeting with reporters after the budget-related party leaders' meeting in the morning, saying, "The timing, content, and procedures of the Light Aircraft Carrier project do not make sense." He added, "The Light Aircraft Carrier project is a project worth over 10 trillion won once started, and it is inappropriate for the current government to finalize such a massive project," emphasizing, "There was no feasibility for the project, and even ruling party members raised concerns during the last National Defense Committee, agreeing to reduce the budget."

Lee Man-hee, the opposition party's budget committee secretary, also pointed out in a phone call, "This is a budget that was cut with the agreement of the ruling and opposition parties and the government in the parliamentary standing committee," and said, "Reversing that would nullify the National Assembly's budget review authority." He also questioned, "This is not just a 5 billion won budget for next year, but a project that will cost tens of trillions once it starts. Is it appropriate for a government with only three to four months left to make this decision?"

Although the ruling and opposition parties have agreed on the overall size of next year's budget, they show differences in positions regarding detailed budget items such as the Light Aircraft Carrier project, so difficulties are expected until the final approval in today's plenary session.

On the same day, Kim Gi-hyeon, the floor leader of the People Power Party, predicted difficulties, saying as he left the senior deputy floor leader's office in the morning, "(Today's plenary session) seems likely to go past 12 o'clock."