Budget is enacted; corporate tax to fall

The National Assembly on Thursday passed the 111.9 trillion won ($84.9 billion) budget for fiscal year 2002. The budget was shaved by 603.3 billion won from the government's original proposal of 112.5 trillion won, but it is an increase of 11.7 percent over this year's budget of 100.2 trillion won.

Legislators also cut the corporate tax by 1 percentage point, and enacted 14 other bills including an amendment to the Securities and Exchange Act.

The ruling Millennium Democratic Party and opposition Grand National Party remained apart on the time frame for postponing the financial merger of Korea's two health insurance plans. The ruling party wants to delay the merger one year, while the Grand National Party proposes two years.

"We still have some time till the year's end, and there should not be that much confusion, even if the matter should extend over to next year," said Lee Sang-soo, the ruling party's floor leader, leaving room for compromise.

The Millennium Democrats believe that putting off the merger by more than a year is tantamount to abolishing the plan. Lee Jae-oh, the opposition floor leader, said, "Postponing merely by a year without improving the standards for assessing incomes of regional-based policyholders amounts to a stop-gap measure." The two parties will try again Friday.

by Lee Soo-ho