Yeogwon "Second Supplementary Budget Scale Will Not Exceed 40 Trillion Won"... Sets the Maginot Line

Drawing the Line at the Democratic Party's 51 Trillion Won Demand
Ruling and Opposition Floor Leaders Enter Final Negotiations for Supplementary Budget Bill... Late-Night Compromise Possible

Park Hong-geun, floor leader of the Democratic Party of Korea (right), and Kwon Seong-dong, floor leader of the People Power Party, are greeting each other in front of the main chamber after the National Assembly plenary session ended around midnight on April 28. (Photo by Yonhap News)

[Asia Economy reporters Oh Ju-yeon, Geum Bo-ryeong, Kwon Hyun-ji] The ruling party is reportedly considering adjusting the size of this year's second supplementary budget, excluding the 23 trillion won local allocation tax, to around 40 trillion won. Although the Democratic Party of Korea has stepped back from its plan to significantly increase the budget to 51.3 trillion won, even if it accepts the opposition's opinion, it could increase the government proposal of about 36 trillion won by approximately 4 trillion won. The ruling and opposition parties will enter final negotiations on the afternoon of the 27th to process the first supplementary budget of the Yoon Seok-yeol administration.

A key ruling party official said in a phone call that day, "The Democratic Party proposed a supplementary budget exceeding 50 trillion won in total, but it will not exceed 40 trillion won."

The Democratic Party is demanding an increase by presenting detailed plans such as retroactive compensation for small business owners' losses (36.3 trillion won), financial support budget for small business owners (6.9 trillion won), support for vulnerable groups including special employment workers (2.1 trillion won), and COVID-19 quarantine (1.4 trillion won).

However, the government and ruling party consider this impossible. They strongly believe that fiscal soundness must be maintained given the difficult financial conditions. A ruling party official stated, "The amount for national debt repayment can be slightly reduced."

Both ruling and opposition parties intend to process the supplementary budget on this day. Neither party can ignore public sentiment ahead of the June 1 local elections. Accordingly, it is highly likely that the floor leaders of both parties will reach a final agreement in the negotiations.

Park Hong-geun, floor leader of the Democratic Party, said that day, "The Democratic Party has promised to open a plenary session and immediately process the supplementary budget whenever the People Power Party and the government present a sincere agreement," emphasizing, "Processing the supplementary budget in May remains our firm position."

Kwon Seong-dong, floor leader of the People Power Party, also said at the Central Election Committee field meeting for the local elections held in Wonju, Gangwon, "The government has gathered all available resources, but the Democratic Party demands an increase close to 20 trillion won, saying that expenditure restructuring and national debt repayment are not possible," criticizing, "Under the Democratic Party's plan, we would have to incur another 10 trillion won in debt." He added, "Even if it is late today, the plenary session must be held to process the supplementary budget."