On the 19th, acting President and Prime Minister Han Deok-soo convened an extraordinary cabinet meeting to exercise the power of reconsideration (veto) on six contentious bills independently processed by the opposition party in the National Assembly last month, including amendments to the Grain Management Act and the Act on Testimony and Appraisal at the National Assembly.
The bills the government vetoed include amendments to the Grain Management Act, Agricultural and Fishery Products Price Stabilization Act, Agricultural and Fishery Disaster Insurance Act, and Agricultural and Fishery Disaster Prevention Measures Act, collectively known as the four agriculture bills, as well as amendments to the National Assembly Act and the Act on Testimony and Appraisal at the National Assembly, totaling six bills.
In his opening remarks at the extraordinary cabinet meeting that day, acting President Han Deok-soo said, “In this very serious national situation, I repeatedly contemplated and deliberated on what choice reflects a responsible government stance as acting President,” adding, “I decided (to exercise the veto) while prioritizing the spirit of the Constitution and the nation's future.”
The amendment to the Grain Management Act, for which the power of reconsideration was approved that day, mandates the government to purchase rice with state funds to guarantee prices when rice prices fall. The Agricultural and Fishery Products Price Stabilization Act stipulates compensating producers with state funds when prices of certain crops other than rice fall.
The Agricultural and Fishery Disaster Prevention Measures Act provides for compensating farmers for part or all of the expenses incurred in growing affected crops if they suffer disasters and fail in farming. The amendment to the Agricultural and Fishery Disaster Insurance Act prohibits insurance companies from increasing premiums if farmers who have enrolled in agricultural and fishery disaster insurance experience crop damage due to natural disasters and insurance claims are paid.
Criticism arises that the content separates agriculture from the market, shifting individual responsibility to the state's burden. There are also allegations that implementing these bills wastes taxpayer money due to substantial financial investment. The Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Strategy and Finance, among related departments, have expressed opposition, arguing that the four agriculture bills will generate more than 1 trillion won of financial burden annually and exacerbate the oversupply of crops like rice. They also opposed the regulation on agricultural and fishery disaster insurance, asserting it would undermine the fundamental principles of the insurance market and result in the disappearance of related insurance products.
During the cabinet meeting that day, acting President Han also remarked, “(If these bills are implemented) they will solidify the chronic oversupply structure of rice and further deepen the decline in rice prices, not to mention impair market functions through increased rice production, thereby leading to excessive government intervention and immense financial burdens. The Agricultural and Fishery Disaster Prevention Measures Act includes provisions beyond restoring damaged facilities and stabilizing livelihoods of affected residents to guarantee the expenses used in production before disasters. The exemption of premium surcharges in the Agricultural and Fishery Disaster Insurance Act contravenes the insurance principle that premiums should correlate with disaster risk.”
The amendment to the Act on Testimony and Appraisal at the National Assembly primarily prohibits refusal to submit materials by citing personal information or trade secret protection when the National Assembly requests individuals or corporations to provide such materials. The amendment to the National Assembly Act involves repealing the 'automatic referral of budget-related bills to the plenary session' system introduced by the National Assembly Advancement Act.
There are concerns in the industry that trade secrets of corporations could be leaked to competing companies or other countries through the National Assembly with regard to the Act on Testimony and Appraisal at the National Assembly.
The government has been reviewing the exercise of acting President Han's veto from various angles. Considerations included whether the veto by the acting President was possible, as well as the political situation with the presidency vacant due to impeachment proceedings. A senior government official noted, “We reviewed until the last moment,” adding, "Following the Constitution and laws, we assessed what would be reasonable from the perspective of our nation's future and citizens, conducting reviews until the final moment."
After considering details comprehensively, acting President Han concluded that the above six bills would harm the nation’s future. Acting President Han said, “It is very burdensome to request reconsideration of the six bills to the National Assembly when government and bipartisan cooperation is urgently needed more than ever,” adding, “We earnestly plead for the National Assembly to conduct an in-depth discussion and seek desirable alternatives on the laws subject to reconsideration.”
The bills vetoed by acting President Han will return to the National Assembly. The National Assembly can hold a plenary session to re-vote on them. However, for the vetoed bills to be enacted, they need the presence of more than half of the total members of the National Assembly and approval from at least two-thirds of the attending members. If a bill is rejected or not re-passed before the Assembly session ends, it is discarded.