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Rival parties find common ground on state budget increase, fail to agree on chips bill

Published: 06 Mar. 2025, 18:43

LEE SOO-JUNG
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Lawmakers from the conservative People Power Party (PPP) and the liberal Democratic Party (DP) pose for a photograph with parliamentary Speaker Woo Won-shik at the National Assembly in western Seoul on March 6. From left: PPP vice floor leader Park Hyeung-soo, PPP policy chief Kim Sang-hoon, PPP floor leader Kweon Seong-dong, Speaker Woo, DP floor leader Park Chan-dae, DP Policy chief Jin Sung-joon and DP vice floor leader Park Sung-joon. [JOINT PRESS CORPS]

The conservative People Power Party (PPP) and liberal Democratic Party (DP) on Thursday agreed on the need to expand this year's state budget, while failing to narrow the differences regarding a special bill for the semiconductor industry.

The second consultative meeting for state affairs convened at the National Assembly without acting President Choi Sang-mok present, unlike the first of its kind on Feb. 20.

DP floor leader Park Chan-dae refused to sit on a negotiation table with Choi, who refused to appoint Constitutional Court Justice nominee Ma Eun-hyuk.

Yet, parliamentary Speaker Woo Won-shik noted that the acting president expressed his wish for a “smooth bipartisan agreement” so the government could work for the parliamentary decisions.

PPP policy chief Kim Sang-hoon said his party would further discuss details such as the size of the supplementary budget with the government, noting Choi’s absence in the meeting. The parties have agreed to set the supplementary budget in three major themes: public livelihood, trade and future industries, such as AI.

DP policy chief Jin Sung-joon said both parties decided to further discuss the special act for the chip industry. The PPP maintained its stance to include a clause exempting the industry from the 52-hour workweek rule, while the DP said the exception can be permitted under the discretion of the labor minister without it being specified in the act.

Regarding a parametric reform in a pension scheme, both parties agreed to limit the reform within the scope of the pension premium and income replacement rates. The DP will "review" the PPP’s suggestion of setting the income replacement rate at 43 percent with the pension premium rate at 13 percent. Previously, the DP proposed that the income replacement rate should be 44 percent.

Before convening the meeting, Woo said today’s dialogue aims to devise solutions on the country’s pressing issues “which should not be left unhandled.” The speaker pointed out the “extreme economic difficulty” that Koreans face, citing the adjusted yearly growth projection for the Korean economy from 1.9 percent to 1.5 percent by the Bank of Korea.

PPP floor leader Kweon Seong-dong said he acknowledged the need of measures that can revive the economy, noting that many people are struggling due to a stagnant economy.

DP floor leader Park Chan-dae said “domestic spending is sluggish and economic growth is unlikely.” He said his party would focus on the supplementary budget during the meeting to stabilize public livelihood as it appeared that the rival parties agreed on the need to expand the state budget.

The rival parties agreed to hold the third consultative meeting on Monday.

BY LEE SOO-JUNG [[email protected]]