Parliament Budget Committee Subcommittee Formation Stalls Again... "Customarily Held by Ruling Party" vs "Should Be Allocated to Majority Party"

Ruling Party: "The Majority Party Has Continuously Held the Subcommittee Chair Since the 16th National Assembly"
Opposition: "If the Majority Party Wants to Take the Role, They Should Be Given Concession and Consideration"

On the 5th of last month, at the Ministry of Economy and Finance (Tax Policy) audit held at the National Assembly in Yeouido, Seoul, Ryu Seong-geol, the People Power Party's secretary (right), and Shin Dong-geun, the Democratic Party's secretary, are having a conversation. 2022.10.5 Photo by National Assembly Press Photographers [Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] The National Assembly's Planning and Finance Committee adjourned on the 9th without reaching an agreement on the formation of subcommittees during the plenary session. Despite the already difficult economic situation, subcommittees need to be formed for concrete discussions on tax law amendments and other matters, but consensus has not been reached.

Although four months have passed since the second half of the National Assembly began, the Planning and Finance Committee is still struggling over the appointment of subcommittee chairpersons. The People Power Party insists that the ruling party should traditionally take charge of the 1st Subcommittee, the Tax Subcommittee, and the Budget and Accounts Fund Review Subcommittee, but the Democratic Party argues that the majority party should take charge for the sake of checks and balances.

Shin Dong-geun, the opposition party's secretary from the Democratic Party, said, "We thought that since the ruling party should take the 1st Subcommittee, naturally the Budget and Accounts Subcommittee would be given to us, but unexpectedly, it was said that traditionally the ruling party holds both the 1st Subcommittee and the Budget and Accounts Subcommittee." He added, "The ruling party needs to act like the ruling party by showing inclusiveness and making efforts to untie the knots that have been tangled so far, but I cannot help feeling very bewildered."

On the other hand, Ryu Seong-geol, the ruling party's secretary from the People Power Party, said, "Regarding the Budget and Accounts Subcommittee, I initially understood that the ruling party would naturally take the chairmanship," and added, "Since the 16th National Assembly, the ruling party has continuously held the chairmanship of the Budget and Accounts Fund Subcommittee."

The Planning and Finance Committee is a standing committee responsible for decision-making on fiscal and economic policies and is divided into the Tax Subcommittee, Economic and Fiscal Subcommittee, and Budget and Accounts Fund Review Subcommittee. Each subcommittee reviews slightly different bills. For example, the Tax Subcommittee discusses comprehensive real estate tax, while the Economic and Fiscal Subcommittee handles bills related to fiscal rules and other financial matters.

Disputes between ruling and opposition members continued over the formation of subcommittees. Seo Young-kyo, a Democratic Party member, argued, "The underlined parties in the materials provided by Secretary Ryu Seong-geol are all majority parties." She added, "It's about dividing rather than conceding," and raised her voice, saying, "The chairperson is from the ruling party, but shouldn't we (the opposition) provide checks on tax-related matters?"

"Please reach a conclusion even if it means staying up all night"

Kim Sang-hoon, a People Power Party member, countered, "It is not possible to legally specify the distribution of subcommittee chairpersons one by one, and I believe the National Assembly should distribute chairpersons according to precedent, which would likely center around the ruling party."

However, Go Yong-jin, a Democratic Party member, said, "Past precedents vary depending on perspective," and added, "It is something that can be concluded through compromise via consultations between the chairperson and the secretaries of both parties." He continued, "If the opposition wants to take the Tax Subcommittee as the majority party, then the chairperson and the ruling party's secretary need to think deeply. I believe concessions should be made."

As discussions continued, Han Byung-do, a Democratic Party member, said, "The chairperson should take a leading role and consult with the floor leadership to reach a quick conclusion," and added, "Whether staying up all night until negotiations are complete or having discussions among the floor leadership, it seems appropriate to quickly arrange and proceed according to procedure." Jang Hye-young, a Justice Party member, also expressed concern, saying, "I worry that if the subcommittee is not formed, a minor subcommittee without meeting minutes might be created at the end, where bills are reviewed by mutual agreement between the ruling and opposition parties." She added, "I request that a conclusion be reached on the formation of the subcommittee by tonight, even if it means staying up all night."