On the 20th, a national policy council will be held, gathering government officials and representatives from both the ruling and opposition parties to discuss current issues. As both parties are still at an impasse regarding the supplementary budget formulation, the special semiconductor law 'exemption for high-income research positions from the 52-hour work week,' and pension reforms, it remains uncertain whether tangible results will be achieved.
Choi Sang-mok, acting Prime Minister and Minister of Strategy and Finance, along with National Assembly Speaker Woo Won-sik, Emergency Response Committee Chair Kwon Young-se of the People Power Party, and Representative Lee Jae-myung of the Democratic Party, will hold a four-party meeting of the national policy council on the 20th.
Throughout this time, both parties have been conducting working-level discussions aiming for a 'consensus level' agreement on the major issues, such as the supplementary budget, special semiconductor law, and pension reform. However, as they have failed to narrow their differences, the council will be held regardless, allowing the representatives to discuss matters.
Though the national policy council will take place after many twists and turns, it is currently uncertain whether the ruling and opposition parties will reach a compromise and achieve results.
First, there is a standoff between the ruling and opposition parties regarding the supplementary budget. Both sides agree that a supplementary budget is necessary to recover the domestic economy. However, there are sharp differences in the targeted size of the supplementary budget and the specific items included.
The Democratic Party is advocating for a 'super supplementary budget' totaling 34.7 trillion won. They are suggesting to concentrate 18 trillion won in the so-called 'four major packages for consumption promotion.' In particular, they proposed a budget of 13.1 trillion won for 'consumer recovery coupons,' which would provide 250,000 won in consumption coupons per person to the public, along with an additional 100,000 won in local currency to those in the basic livelihood security program, low-income families, and single-parent families.
On the other hand, the People Power Party emphasizes the principles of 'recovering domestic demand, supporting vulnerable groups, and enhancing industrial and trade competitiveness, including AI,' regarding the supplementary budget. They specifically state that they cannot accept the Democratic Party's demand for 'distribution of local currency.' Although they have invested finances in local currency, they believe that the benefits have been concentrated in certain sectors, such as private education and hospitals, resulting in minimal effectiveness.
Instead, they are considering expanding the credit card cashback program as a 'precise support' measure for small businesses through the supplementary budget. By allowing a 10% cashback on spending in small business sectors, both small businesses and consumers would benefit.
Kweon Seong-dong, the People Power Party's floor leader, mentioned during a press conference on the 16th the credit card cashback system, stating, "This targets small businesses and self-employed individuals with sales exceeding a certain amount," and added, "We are researching practical support measures for small businesses and the self-employed, and we will formalize and announce these measures soon."
During the negotiation process, the Democratic Party may consider compromising on the budget for 'consumer recovery coupons.' Earlier, Representative Lee Jae-myung of the Democratic Party stated that if the supplementary budget focused on local currency support does not materialize, they would abandon related spending. Park Chan-dae, the Democratic Party's floor leader, also noted during a press conference the same day that they believe 'the recovery support funds or consumption coupons should not be abandoned depending on the domestic situation,' while stating, 'If there are better alternatives for enhancing domestic demand, we could adjust that part. We intend to discuss and negotiate thoroughly with the government as well.'
As for the other contentious issues, such as the special semiconductor law and pension reform, the differences in positions between the ruling and opposition parties remain unresolved.
The People Power Party is demanding that a 'white-collar exemption (exemption from the 52-hour work week for high-income earners)' provision be introduced in the special semiconductor law. They argue that in order to enhance the competitiveness of the semiconductor industry, the work hour regulations for research and development personnel in the semiconductor sector must be lifted. Conversely, the Democratic Party believes that the 'white-collar exemption' raises concerns about fairness with other sectors and that it should be discussed calmly through the Labor Standards Act, prioritizing the support measures for the semiconductor industry that have no differing opinions between the parties.
Kweon Seong-dong stated, "If we remove the provision allowing exceptions for 52-hour workers from the special semiconductor law, it is meaningless."
No Jong-myeon, the Democratic Party's floor spokesperson, expressed doubt saying, "I have questions about whether the exemption from the 52-hour work week needs to apply specifically to the semiconductor industry," and suggested, "We should review whether exceptions can be granted specifically to research and development positions across the entire industry. If it only applies to the semiconductor sector, wouldn't the AI and gaming sectors remain inactive?"
While both parties agree to prioritize discussions on 'parameter reforms' regarding pension reform, they are currently wrestling over where the discussions should take place. The People Power Party insists on discussing parameter reforms and structural reforms in the National Assembly's special committee, composed of an equal number from both parties. In contrast, the Democratic Party is advocating for first addressing parameter reforms in the relevant Standing Committee on Health and Welfare before discussing structural reforms.