Rather Cut the Mountain, Lawmakers' Salaries Will Not Be Reduced [News SeolCham]

②Is There a Feasibility of Cutting Lawmakers' Salaries?
Lawmakers 'Self-Increase' Annual Salaries Every Year
To Cut Salaries, 'Voluntary Reduction' Is Needed...Low Possibility
US Cut Salaries During Economic Crisis, Japan During COVID-19

Editor's Note'Seolcham' is a newly coined term meaning to refer to detailed explanations. In [News Seolcham], we aim to pinpoint parts of the news that require fact-checking or further explanation and provide more detailed information.

Han Dong-hoon, the Emergency Response Committee Chairman of the People Power Party, proposed a 'cut in lawmakers' salaries.' How feasible is this proposal? There have been several discussions about reducing the salaries (sebi, 歲費) of lawmakers, which is essentially their annual salary, but these discussions have always fizzled out. Since the salaries of South Korean lawmakers are effectively 'self-increased' by passing the annual salary bill in the National Assembly plenary session, lawmakers do not voluntarily choose to 'cut their own flesh.'

This year, the annual salary of lawmakers was confirmed at 156.9 million KRW, a 1.7% increase from last year. The annual salary of lawmakers consists of three components: allowances (general allowance, administrative work allowance), bonuses (long-service allowance, holiday vacation pay), and expenses (legislative activity expenses, special activity expenses). As of this year, the general allowance for lawmakers is 7,079,900 KRW per month, a 2.5% increase from last year, and the administrative work allowance also rose by about 15,000 KRW to 637,190 KRW. Bonuses include a long-service allowance of 7,079,000 KRW and holiday vacation pay (Lunar New Year and Chuseok) of 8,495,880 KRW. Additionally, legislative activity expenses of 3,136,000 KRW and special activity expenses of 784,000 KRW are paid as expenses.

According to Chairman Han's claim, to reduce lawmakers' annual salary to the median income level, they would need to receive 88.14 million KRW less annually (7.35 million KRW less per month). The median income for a four-person household this year is 5.73 million KRW per month, which translates to 68.76 million KRW annually. This means cutting the salary by more than half. Based on the statutory number of 300 lawmakers, a simple calculation shows that the total amount paid to lawmakers would decrease by about 26.4 billion KRW per year.

◆ Do Lawmakers Receive Salaries Even When Imprisoned or Not Working? ... The 'Self-Increase' Structure

How do South Korean lawmakers' salaries compare to those of other countries?

The annual salary of a U.S. House Representative is 174,000 USD (approximately 231.85 million KRW). A UK House of Commons member earns 86,584 GBP (about 145.5 million KRW), and a German Bundestag member receives 187,712 EUR (monthly salary plus tax-free allowance, approximately 269.48 million KRW). In Japan, members of the House of Councillors receive an annual salary of 21,728,000 JPY. According to the 'Law on Salaries, Travel Expenses, and Allowances of Members of the National Diet,' they receive a monthly salary of 1,294,000 JPY plus a year-end bonus of 6,200,000 JPY. Additionally, they receive tax-exempt research, publicity, and accommodation expenses of 1,000,000 JPY per month and legislative office expenses of 640,000 JPY per month. Compared to South Korea, the U.S., UK, Germany, and Japan all have similar or higher salary levels.

However, other countries voluntarily reduce lawmakers' salaries during economic hardships. The U.S. Congress passed a freeze in 2009 as a measure to share the pain of the economic crisis, and it has been maintained for 15 years since. The Japanese Diet cut lawmakers' salaries by 20% in 2021-2022 to share the burden caused by the global COVID-19 pandemic.

In contrast, South Korean lawmakers' salaries have steadily increased. There are even criticisms that lawmakers are preoccupied with 'self salary increase bills' while numerous livelihood bills pile up in the National Assembly.

Last year, the salary was frozen at about 153 million KRW, but this year it increased by 1.7%. Compared to nine years ago in 2015 (annual salary of 147.37 million KRW), it has risen by 6.5%. Although this increase rate may seem low compared to the approximately 36% increase in median income during the same period (4.22 million KRW → 5.73 million KRW), it is not appropriate to compare the increase rates alone because lawmakers receive an annual salary close to 4 times the average worker's annual salary of about 42 million KRW.

Public perception of lawmakers' privileges and benefits is negative. Distrust is widespread that lawmakers neglect their duties. Lawmakers receive their salaries even if they do not attend committee meetings or hardly engage in legislative activities, especially when undergoing trials. For example, independent lawmaker Yoon Kwan-seok, who was imprisoned on charges of accepting envelopes of money during a party convention, did not engage in legislative activities due to the trial since August last year but still received allowances. In addition to the annual salary, each lawmaker's office receives about 1.5 million KRW monthly for vehicle maintenance and fuel costs, and full support is provided for KTX, airfare, and ship fares. The personnel expenses for nine aides, which exceed 500 million KRW annually, are paid separately.

◆ Will Salary Cuts Be Empty Promises Again? ... Proposals to Return Salaries Upon Conviction in General Elections

"Cut salaries by half" (2016, Roh Hoe-chan, then floor leader of the Justice Party)
"Cut salaries by 30% to share COVID-19 pain" (2020, Sim Sang-jung, then leader of the Justice Party)
"Cut salaries of lawmakers who do not attend the National Assembly" (2020, Democratic Party general election pledge)
"Salary cuts with consent of general election candidates" (2020, Kim Hyung-oh, then nomination committee chairman of the United Future Party, predecessor of People Power Party)

Is the proposal to cut lawmakers' salaries likely to be realized?

Criticism arises that it will be empty promises again because salary cut proposals have been a recurring issue in every election but have never been realized. To cut lawmakers' salaries by more than half from the current level, lawmakers must voluntarily agree and pass the reduction bill in the plenary session. During the 21st general election, Kim Hyung-oh, then nomination committee chairman of the United Future Party (predecessor of the People Power Party), obtained consent from candidates for salary cuts, but it was not implemented. Moreover, Chairman Han has stepped back, saying, "The salary cut is my personal opinion."

Several promises related to salaries have also emerged in this general election. Chairman Han proposed returning salaries during the trial period if sentenced to imprisonment or higher as a political reform measure. The New Future party, led by former Democratic Party leader Lee Nak-yeon, promised to prohibit salary payments if lawmakers are imprisoned for serious crimes. Both proposals limit the scope to cases where a guilty verdict is rendered in court, making them more acceptable than a blanket salary cut for all lawmakers.