As the Special Committee on Budget & Accounts of the National Assembly entered the schedule for reviewing the 2026 budget bill, Prime Minister Kim Min-seok reaffirmed the government's position that National Assembly ratification is not necessary for the investment in the United States included in the U.S.-Korea tariff agreement. The government and the ruling party argue that the U.S.-Korea tariff agreement was concluded as a memorandum of understanding (MOU), not a treaty, and therefore is not subject to ratification.
On the morning of the 6th, attending the Special Committee on Budget & Accounts at the National Assembly, Prime Minister Kim said in response to questions from People Power Party lawmaker Kang Seung-gyu, "In principle, treaties must be ratified, but when that is not the case, it is possible to obtain the National Assembly's consent in an appropriate form."
He added, "The (tariff agreement) reached a final conclusion in the form of an MOU between the United States and Korea," and said, "Please also take into account that for the MOU, the passage of related laws is tied to the burden on corporations and to timing, so there are parts that need to be handled quickly."
Article 60 of the Constitution states, "The National Assembly has the right to consent to the conclusion and ratification of treaties that impose a significant fiscal burden on the state or the people, or treaties pertaining to legislative matters." The People Power Party argues that because the U.S.-Korea tariff agreement requires a total investment of $350 billion (506.415 trillion won) in the United States, National Assembly ratification is necessary.
In contrast, the government and the ruling party are explaining that an MOU does not fall under treaties requiring National Assembly ratification. They stressed instead that swift legislation on the Special Act on Investment in the United States is needed to solidify trust with the United States. They say that ordinarily, requesting ratification consent from the National Assembly requires submitting measures to supplement domestic industries and plans for funding sources together, which takes considerable time.
Kang Seung-gyu, the lawmaker who raised questions about ratification, said of the prime minister's answer, "The presidential office is saying 'National Assembly ratification is not necessary; we will only pursue a special act,' but the Constitution grants the National Assembly the right to consent regarding legislative matters that impose a significant fiscal burden on the state or the people," and added, "Is a $200 billion cash investment not a fiscal burden? Is the $150 billion MASGA (U.S. shipbuilding investment project) guaranteed to generate revenue?"
Ruling and opposition members of the budget committee also differed over the Lee Jae-myung administration's expansionary fiscal stance. The Democratic Party of Korea defended the government's fiscal stance, saying spending should be increased to play a priming role for economic growth and restoring livelihoods. In contrast, the People Power Party showed its intent to secure fiscal soundness by cutting populist and reward-seeking budgets.
Ahn Do-geol, a Democratic Party lawmaker, said, "In the economic downturn, the previous Yoon Suk-yeol administration prescribed the poisonous dose of ultra-austerity, and the economy died," and added, "The Lee Jae-myung administration established an economic fiscal policy that faces reality, and the government took the lead in driving recovery and creating new growth engines. It shifted to a policy that puts wings of growth on a fiscal policy that had been shackles on growth."
Park Hyeong-su, a People Power Party lawmaker who is the opposition secretary of the budget committee, held a press conference that day and said, "Next year's budget bill turns hope into despair and economic logic into political logic, a 'budget that ignores livelihoods,'" and added, "We plan to drastically cut government budget items that are hypocritical or reward-seeking and unnecessary, and shift heavily toward tailored livelihood budgets and balanced regional development."