September 2 Legislative Report: 821 Trillion Won Budget Shakes Up Personnel
The 100-day regular parliamentary session has entered a two-front battle of personnel verification and review of an 821 trillion won budget. In the second regular session of the National Assembly under the Lee Jae-myung administration, which opened on the 1st, the Industry, Trade, Energy, SMEs and Startups Committee reached an agreement between ruling and opposition parties to hold a personnel hearing for the Minister of SMEs and Startups candidate on the 15th. A committee official told Yonhap News on the 2nd that they plan to hold a plenary meeting next week to adopt the hearing implementation plan. Judicial appointments have also passed through the revolving door. According to Yonhap News, the appointment proposal for Supreme Court Justice candidate Kim Seong-su was submitted to the National Assembly, and the candidate reported about 580 million won in combined assets for himself, his spouse, children, and mother.
Minister and Supreme Court Justice Verification Simultaneously, Hearings Drive Political Agenda
The aftermath of the August 30th cabinet reshuffle is dragging across the entire government schedule. This is because if the candidate verification process drags on, both the budget and livelihood-related legislation could be delayed. Han Byeong-do, floor leader of the Democratic Party, emphasized at a party meeting, "We will ensure that livelihood legislation does not halt due to personnel hearings and that budget review does not delay due to political strife." The People Power Party questioned the personnel selection itself. Floor leader Jeong Jin-seok criticized Justice Minister candidate Kim Seung-won, saying "President Lee Jae-myung selected the optimal person for the position of minister in charge of dismissing appeals to cancel his own trials." There is a structure where the verification battle could spread to leverage in budget negotiations.
"First, Second, and Third Priority is Livelihood Issues"
This is the cooperation request National Assembly Speaker Jin Tae-hyang made to the ruling and opposition parties ahead of the regular session. The schedule is already in motion. Starting with the plenary session on the 3rd, the floor leaders' speeches by the Democratic Party and People Power Party are scheduled for the 7th and 8th respectively, and the session will continue until December 9th.
821 Trillion Won Budget, First Point of Conflict Between Ruling and Opposition Parties
Han Byeong-do, floor leader, stated, "We will process the budget bill within the statutory deadline," and firmly declared, "While keeping the door to dialogue and negotiation open, we will not back down from senseless political strife and obstruction." He also warned, "Fake filibusters and obstructionism that take livelihood bills as hostages will no longer work." The People Power Party is moving in the opposite direction. Designating the government's budget proposal for next year, worth about 821 trillion won, as a "fiscal runaway budget," they signaled their intention for massive cuts. With high-tension budget negotiations forecast, friction is likely to increase over the order of processing key bills.
Voting Records Reveal Internal Fractures in Opposition Party
Numbers provide the first answers. In the August 20 vote on the partial amendment to the Pharmacy Act (alternative bill), among People Power Party members, there were 4 votes in favor and 26 against. The Social Solidarity Economy Basic Act (alternative bill) similarly saw overwhelming opposition within the party with 5 in favor and 19 against. The Construction Industry Basic Act partial amendment (alternative bill) was divided with 14 in favor and 10 against. In contrast, the National Pension Service Act partial amendment (alternative bill) passed with 29 in favor and 9 against, the School Site Complex Development Support Special Act with 33 in favor and 10 against, while the Agricultural and Fishery Cooperatives Act (alternative bill) and Personnel Hearing Act revision passed with 35 in favor and 8 against, and 54 in favor and 3 against respectively.
Notable is the repeated defections. Rep. Kang Min-kook cast votes against the party line on three bills: the Agricultural and Fishery Cooperatives Act, National Pension Service Act, and the May 18 Victims Compensation Act. Rep. Park Sung-hoon also defected on the same three bills. Yoon Jae-ok, Lim E-ja, Kim Mi-ae, Kim Eun-hye, Choi Su-jin, Kwak Kyu-taek, and Kim Seung-su also stood on the opposition side more than twice. It is interpreted that for economic bills with strong interests like pensions, construction, and school sites, voices from regions and industries swayed the votes. If this pattern is reproduced in budget cut negotiations, it is expected to become a significant variable in calculating the ruling party's defense line.
Reading the Meaning of Votes by Industry
Industrial impact varies by bill. The National Pension revision, which passed with a majority even within the ruling party, suggests that the center of gravity has already shifted toward changes in the payout structure and fund operation regulations. The Construction Industry Basic Act, with a narrow 4-vote margin, leaves room for significant changes to the final bill on construction industry entry and subcontracting regulations during negotiations. The Pharmacy Act's voting pattern of 26 against and 4 in favor is seen as signaling a large temperature gap between the pharmaceutical/distribution industry's expectations and the National Assembly's stance. If the School Site Complex Development Special Act gains momentum, it is expected to create new demand for local government finances and regional real estate markets through projects utilizing idle school sites.
New proposals also touch the industry landscape. Rep. Choi Hyeok-jin introduced the "Regional Enterprise Priority Utilization Act," which allows regional businesses to have priority use of public data center benefits.
"It's not just about attracting one data center. Businesses must gather around it, universities and research institutions must connect, and good jobs must be created"
This is Rep. Choi's legislative intent. It can be evaluated as regulatory design to connect AI infrastructure investment to regional clusters and jobs. The National Assembly Legislation and Judiciary Committee passed a special law revision to extend the activity period of the October 29 Itaewon Disaster Special Investigation Committee by one year at its plenary meeting on the 1st. CBS No Cut News reported that although the Corruption Investigation Office for High-ranking Officials (CIO) poured out demands for expanding personnel and investigation targets at the Law and Judiciary Committee's Bill Review Subcommittee 1 on the 31st of last month, the reaction within the National Assembly was lukewarm. Rep. Na Kyung-won's "Anti-Yong Hye-in Bill" proposal met with opposition from the Basic Income Party saying "Without even reflecting on the rebellion," showing legislative conflicts continuing even outside the plenary session.
Outlook: Three Gateways Will Determine the Pace of the 100 Days
Short-term gateways are compressed into three. The Industry, Trade, Energy, SMEs and Startups Committee's adoption of the implementation plan, the SME and Startup Minister candidate hearing on the 15th, and the dynamics of budget negotiations revealed in the floor leaders' speeches on the 7th-8th. If the hearing schedule remains firm, the entire reshuffle personnel can continuously board the verification track. With December 9th, the end of the session, as the de facto deadline for the budget, both ruling and opposition parties share the time pressure. If the opposition party's voting defections are confirmed during the budget phase as well, the ruling party appears likely to shift from defending the full 821 trillion won to partial compromise. It's no exaggeration to say that the success of this regular session, with personnel and budget intertwined, ultimately depends on Speaker Jin Tae-hyang's mediation and the compromise will of the ruling and opposition floor leaders.
