'February Supplementary Budget Parliament' Begins, Ruling and Opposition Disagree on Timing and Scale... Rough Road Expected

Democrats Aim to Complete Election Campaign Procedures by February 15... People Power Party Says "Cannot Proceed Without Agreement"

Prime Minister Kim Boo-kyum is delivering a policy speech related to the supplementary budget at the National Assembly plenary session on the 27th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] After the Lunar New Year holiday, the ruling and opposition parties are expected to begin full-scale negotiations over the 'February supplementary budget National Assembly.'

Sharp disagreements have already emerged between the parties regarding the timing of the supplementary budget approval, the scale of the increase, and the methods of securing funds, suggesting a painful process ahead.

According to the National Assembly on the 2nd, each standing committee will review the government's supplementary budget bill from the 3rd to the 8th, and the Special Committee on Budget and Accounts will conduct its review starting from the 7th.

The Democratic Party aims to pass the supplementary budget before the official presidential election campaign begins on the 15th of this month. Floor leader Yoon Ho-jung said, "Now is the time for action rather than words," adding, "Especially, to pass the supplementary budget before the official campaign starts on the 15th, even overnight deliberations from the 3rd after the Lunar New Year holiday will be a tight schedule."

However, the People Power Party has stated that it will not be bound by the timetable set by the Democratic Party. With no plenary session scheduled yet for the supplementary budget approval, they do not consider the 15th as a 'deadline.'

The differing speeds at which the ruling and opposition parties want to process the supplementary budget are believed to stem from conflicting calculations of electoral gains and losses depending on whether the supplementary budget is formulated and executed before the presidential election. The Democratic Party plans to increase the supplementary budget to more than 35 trillion won to strengthen compensation for losses of small business owners and self-employed individuals and to bolster COVID-19 prevention measures.

Presidential candidate Lee Jae-myung stated on social media on the 31st of last month, "A flexible and smart quarantine system reform and full compensation for damages are urgently needed," and added, "I will do my best to secure a supplementary budget of at least 35 trillion won."

On the other hand, the People Power Party argues that a supplementary budget of around 50 trillion won is necessary, adding a 'plus alpha' of 32 to 35 trillion won to the government's proposed 14 trillion won. The party insists that support payments for small business owners and self-employed individuals whose sales have declined due to COVID-19 should be significantly increased from the current 1 million won to 10 million won. The People Power Party believes that the supplementary budget funds should be secured through expenditure restructuring of the main budget, which totals 608 trillion won.