Ruling Party "Supplement R&D Budget" vs Opposition "Resignation of Economy Team Led by Choo Kyung-ho"... Budget Review Tug of War

Budget Subcommittee to Fully Operate on the 13th
People Power Party Reveals 40 Increased Projects in 5 Major Areas
Budget Review Faces Challenges Due to Political Schedule Including Impeachment and Special Prosecutor

The ruling and opposition parties have officially begun a tug-of-war over the review of next year's budget bill, which amounts to 657 trillion won. There is a significant difference in perspectives between the parties regarding the government's sharply reduced budget for research and development (R&D), and with the upcoming general election next year, fierce battles are expected over the impeachment of Broadcasting and Communications Commissioner Lee Dong-gwan and the special prosecutor law, making it likely that the budget bill will exceed the legal deadline (December 2) for approval.

On the 13th, the National Assembly's Special Committee on Budget and Accounts held a Budget Adjustment Subcommittee meeting to begin detailed deliberations on next year's budget bill. The Budget Subcommittee is the 'final gateway' for budget review in the National Assembly, where adjustments to increase or decrease budgets for individual projects are decided through detailed examination.

The People Power Party (PPP) announced 40 major budget increase projects related to threats such as ▲ demographic changes ▲ polarization ▲ economic slowdown ▲ social unrest and crime ▲ climate crisis during a briefing on the direction of next year's budget review held at the National Assembly. They expressed their intention to supplement the reduced R&D budget during the National Assembly's review process. Yoon Jae-ok, the PPP floor leader, introduced, "The People Power Party and the government have set welfare for the vulnerable as the top policy priority in the formulation of next year's budget."

Yoon Jae-ok, floor leader of the People Power Party, is speaking at the floor countermeasure meeting held at the National Assembly on the 10th. Photo by Kim Hyun-min kimhyun81@

The major budget increase projects announced by the PPP include expanding essential medical faculty in medical schools and advanced hospitals, extending incentives for staggered commuting hours to workers on parental leave in small and medium-sized enterprises, and gradually adjusting parental leave benefits to more realistic levels. The scope of support for the Jeonse deposit return guarantee fee will be expanded from low-income youth to low-income people of all ages, the number of elderly knee joint surgeries supported will be increased by 1,000, and the number of implants covered by health insurance will be increased from the current two to four. Additionally, the budget increases include raising the transportation cost support rate for low-income workers with severe disabilities, and projects to guarantee mobility rights such as the 'Barrier-Free Support Project' and the 'Wheelchair-Accessible Taxi (Combined Taxi) Support Project.' Furthermore, measures such as interest cost reductions for small business owners using small business policy funds and the temporary establishment of special electricity bill reductions for small business owners will also be pursued.

Notably, they promised significant supplementation regarding the R&D-related budget. They plan to greatly expand scholarships for science and engineering R&D and prepare measures to alleviate concerns in the field due to changes in the budgets for basic research and government-funded research institutes. Floor leader Yoon explained, "We will thoroughly reinforce the budget to ensure there are no concerns in the field by focusing on developing science and engineering talent and strengthening the competitiveness of universities and research institutions."

Hong Ik-pyo, the floor leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 10th. Photo by Kim Hyun-min kimhyun81@

The Democratic Party plans to restore most of the R&D budget and the budget related to Democratic Party leader Lee Jae-myung, which the government cut, during this budget review process. Hong Ik-pyo, the Democratic Party floor leader, said at the party's Supreme Council meeting, "We will meaningfully restore the R&D budget and preserve the Youth Tomorrow Savings Fund budget to support the future of young people," adding, "We will also secure budgets for the introduction of a fixed-rate transportation pass and the issuance of local love gift certificates to reduce the burden on people's livelihoods and serve as a catalyst for revitalizing the local economy." They intend to increase the budget for representative projects advocated by Democratic Party leader Lee Jae-myung and others. Hong added, "We will cut excessively allocated contingency funds and unnecessary promotional budgets."

The Democratic Party plans to focus on highlighting the government's economic failures, such as the recent soaring prices. At the Supreme Council meeting, they raised the issue of responsibility for Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho. Democratic Party spokesperson Kwon Chil-seung said, "The recent price surge is very severe," and added, "The Choo Kyung-ho economic team must take responsibility and resign, and President Yoon Seok-yeol, who failed to make proper forecasts, must also take responsibility and apologize."

The Budget Committee has set a schedule to complete budget review by the 30th of this month, but given the significant differences in perspectives between the ruling and opposition parties regarding the budget bill, this year's National Assembly budget review is also expected to be a rough road.

The Democratic Party plans to process impeachment motions against Broadcasting and Communications Commissioner Lee Dong-gwan and prosecutors Son Jun-sung and Lee Jeong-seop at the plenary sessions on the 30th of this month and the 1st of next month, which is expected to be the biggest obstacle during this year's budget review process. The Democratic Party is also pushing for a plenary vote on the 'Double Special Prosecutor Law' (regarding suspicions of stock manipulation by First Lady Kim Keon-hee and the Daejang-dong 5 billion won club). Although the legal deadline considering the cooling-off period for the Double Special Prosecutor Law, which was fast-tracked, is the 22nd of next month, they intend to expedite its processing since it already meets the requirements for submission to the plenary session. With contentious political issues that could become flashpoints ahead of the general election piling up, it is expected to be difficult to approve next year's budget bill within the legal deadline of December 2, as was the case last year.