Kwon Young-se: "Lee only pretends to shift right"
Opposition: "We are criticized whether we shift right or left"
Differences remain... Concerns over fruitless ruling-opposition-government talks
Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 17th. 2025.2.17 Photo by Kim Hyun-min
Lee Jae-myung, leader of the Democratic Party of Korea, has been making a series of 'rightward shifts,' but there has been little progress on key issues such as the highest inheritance tax rate and the semiconductor special law's exemption from the 52-hour workweek, leading to criticism within the ruling party that these efforts are 'half-hearted.' The ruling party, opposition, and government plan to hold a four-party National Affairs Council meeting on the 20th to discuss the ongoing contentious issues, but significant differences in positions remain, making progress unlikely.
According to political circles and the government on the 17th, Lee's 'rightward shift' can be summarized as the exemption of semiconductor R&D personnel from the 52-hour workweek, giving up on the 250,000 KRW per person livelihood support fund, and pushing for easing the inheritance tax law. However, upon closer examination, many of these initiatives have either been stalled due to internal party opposition after Lee's mention or have not seen significant progress from previous positions.
Regarding the exemption clause for the 52-hour workweek in the Semiconductor Special Act, Lee mentioned its necessity, but it has effectively stalled due to opposition within the party. The Democratic Party plans to pass the Semiconductor Special Act first with only the agreed tax support provisions and discuss the 52-hour workweek exemption later. Although Lee said in his negotiation group leader speech on the 10th that he would "not insist on it," the 250,000 KRW support fund is being pushed again under the new name 'Livelihood Recovery Consumption Coupon.'
As for the inheritance tax law, while the party has proposed raising the blanket deduction amount and the spouse inheritance deduction limit, it remains negative about lowering the highest tax rate, which is a 'hot potato.' The highest tax rate reduction is a key pledge of the ruling party and government, with even the presidential office pushing for a reduction to around 30% (currently 50%). The ruling party argues that excessive inheritance tax burdens stifle business activities and that the highest tax rate reduction should also be put on the table for discussion.
As Lee's rightward shift wavers, criticism has emerged within the ruling party that it is a "throw-it-and-see" approach. Kwon Young-se, emergency committee chairman of the People Power Party, pointed out at the National Assembly emergency committee meeting that "just a few days ago, Lee changed his stance on semiconductor industry working hours and played a show by removing and then reinstating the nationwide cash handout in the supplementary budget." A government official also stated, "The position is that populist items such as the 250,000 KRW support fund should not be included in the supplementary budget." On the other hand, a Democratic Party official retorted to such criticism by saying, "They criticize us for leftward shifts when we shift left and for rightward shifts when we shift right."
With the ruling and opposition parties still at odds over major issues, there are concerns that the National Affairs Council scheduled for the 20th may only result in a stalemate. On that day, Choi Sang-mok, acting Prime Minister and Minister of Economy and Finance, Woo Won-shik, Speaker of the National Assembly, Kwon Young-se, committee chairman, and Lee Jae-myung are set to meet and discuss national issues frankly.
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