[Reporter’s Notebook] Is the Ruling Party Losing Leadership Over the Semiconductor Act?

"It's maddening and infuriating."

A member of the People Power Party (PPP) whom I met in private sighed even before sitting down. The Semiconductor Special Act, inheritance tax reform bill, and pension reform were all agendas led by the PPP. Yet, they wore a distressed expression, lamenting that the Democratic Party of Korea (DPK), which joined late, seemed to have stolen their agenda.

The Semiconductor Special Act, which has become a hot issue in Yeouido's political circles, is a prime example. The bill was first proposed by PPP lawmaker Lee Cheol-gyu. In November last year, he introduced a bill applying a 52-hour workweek exemption only to semiconductor research and development (R&D) personnel. However, the situation changed when DPK leader Lee Jae-myung personally chaired a forum. Lee even hinted at being open to including the 52-hour workweek exemption clause. Although the DPK did not change its original stance, the PPP found itself in a difficult position. The Semiconductor Special Act became entangled with the 52-hour workweek exemption clause.

The inheritance tax reform discussion is similar. The government and ruling party announced a tax law amendment last July, including revisions to the inheritance and gift tax law. The core points were raising the child deduction from 50 million won per person to 500 million won and lowering the top tax rate from 50% to 40%. The bill was rejected by the DPK.

The inheritance tax debate, which had subsided, was revived by a single remark from the DPK leader. The DPK supported raising the inheritance tax deduction as proposed by the PPP but opposed lowering the top tax rate, once again putting pressure on the ruling party. In effect, the PPP appears surrounded by a policy offensive from the DPK amid the early presidential election phase.

The PPP finds itself unable to act decisively. Conceding to the DPK would mean not only enduring the difficulties of the impeachment political climate but also surrendering policy leadership. Opposing the DPK risks being blamed for neglecting the livelihood economy. One PPP lawmaker confessed, "No matter how much the opposition outnumbers us, it’s frustrating to see even the agendas we pioneered being taken away."

In this situation, the PPP’s chosen strategy is to attack the DPK leader. They accuse him of "political tricks to change the political situation" and say, "He preaches growth, but what actually grows is his list of lies," sharpening their rhetoric daily. This is a choice to turn policy agendas into political issues, but the problem is that this alone makes it difficult to escape the policy dilemma.

If the confrontation between the ruling and opposition parties continues, it may become unclear who originally had the will to push the Semiconductor Special Act or the inheritance tax law. The effect of securing political points by preempting agendas would disappear. If they want to successfully and smoothly land the agendas they pioneered, a different strategy is needed.

A strategic choice is required to lead discussions based on a policy roadmap?sometimes applying pressure, sometimes making magnanimous concessions. That is the image of a ruling party the public expects from the People Power Party.