Budget Deadline Missed... Budget Subcommittee and Tax Subcommittee of the Strategy and Finance Committee 'Disrupted'

Legal Deadline (December 2) Approaching... Passage Practically Difficult
Likely to Miss Legal Deadline for 2nd Consecutive Year
Lee Jae-myung "Choosing Revised Proposal Instead of Original and Quasi-Budget"
Jung Jin-seok Urges "Swift Processing Within Legal Deadline"

Bang Gi-seon, the 1st Vice Minister of Strategy and Finance, is waiting for the meeting to start at the National Assembly Tax Subcommittee room on the 28th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Lee Ji-eun and Lee Hyun-joo] It has become practically difficult to process next year’s budget bill within the legal deadline. With less than five days remaining until the legal deadline of December 2, the ruling and opposition parties are sharply divided over the budget review, and the review of the supplementary budget-related bills that must be passed along with the budget is also not progressing properly. There is growing likelihood that the process will be postponed until December 9, the last day of the extraordinary session of the National Assembly. The opposition party has also hinted at the possibility of passing the bill unilaterally.

According to the ruling and opposition parties on the 28th, the meetings of the National Assembly’s Special Committee on Budget and Accounts’ Budget Adjustment Subcommittee and the Tax Subcommittee of the Strategy and Finance Committee were delayed until the morning due to one side’s absence. At the Budget Subcommittee, the chairman and members from the ruling party did not attend, and at the Strategy and Finance Committee’s subcommittee, the meeting did not proceed as Democratic Party members held separate discussions for an extended period.

With less than a week left until the legal deadline, the atmosphere strongly suggests that passing the budget is practically difficult. The Budget Subcommittee plans to conduct reduction reviews of the budgets under the jurisdiction of the Political Affairs Committee, Land, Infrastructure and Transport Committee, and the Steering Committee on this day. Increases in the budget are not even being discussed. The Tax Subcommittee of the Strategy and Finance Committee is also supposed to discuss the Restriction of Special Taxation Act and the Value-Added Tax Act on this day, but there has been no progress.

If the supplementary bills are not passed by the 30th of this month, the Speaker of the National Assembly can designate the bills and submit them to the plenary session for passage. However, even if the government’s proposal is submitted, it will be difficult to pass it as originally proposed if the opposition party, which holds a large number of seats, opposes it. A National Assembly Speaker’s office official said on this day, “Even if the designation is made on the 30th, since the legal deadline for the budget is December 2, there will likely be further negotiations. It is possible that it will move together with the budget,” suggesting the possibility of a delay in passage.

The ruling and opposition parties were also sharply divided. Lee Jae-myung, leader of the Democratic Party of Korea, said at the party’s Supreme Council meeting, “(Regarding next year’s budget) If necessary, rather than choosing the government’s original proposal or a provisional budget, exercising our authority to select a revised bill that cuts an improper budget even if we cannot increase it is also an option.” This implies that they are willing to pass the budget unilaterally since they hold a majority of the seats.

Bang Gi-seon, First Vice Minister of Strategy and Finance, is waiting for the meeting to start on the 28th at the National Assembly Tax Subcommittee meeting room. Photo by Yoon Dong-joo doso7@

Park Hong-geun, floor leader of the Democratic Party, also said, “We must do our best to meet the legal deadline for processing the budget bill,” but added, “However, it is more important to carefully review the budget to protect the people’s tax money than to meet the deadline,” emphasizing the likelihood of a delay. Park said, “Many projects were put on hold at the Budget Subcommittee, and the Tax Subcommittee of the Strategy and Finance Committee, which handles supplementary bills, is also in a deadlock.”

Jung Jin-seok, emergency committee chairman of the People Power Party, said, “Swiftly processing the new budget within the legal deadline is exactly politics for the people’s livelihood,” and “I repeatedly request that the Democratic Party focus on the National Assembly’s fundamental duty to protect the working class and vulnerable groups.”

The National Assembly has only processed the budget within the legal deadline three times since the introduction of the National Assembly Advancement Act in 2014, in 2015 and 2020. Last year, the budget was passed on December 3, one day past the legal deadline. Therefore, if the deadline is exceeded by two days this year, it will be the second consecutive year of missing the legal deadline.