President Lee Myung-bak said Monday the government should scrutinize and respond actively to "irrational" bills, including one on expanding government compensation for lost savings bank deposits, amid criticism it is a populist policy ahead of the parliamentary elections.
Last week, a parliamentary committee passed a special law to reimburse victims of troubled savings banks for their lost deposits, prompting critics to accuse them of bending the rules and wasting taxpayer money to woo voters ahead of April's parliamentary elections.
"Each ministry should respond actively to irrational bills, including the special law on compensation for damage from savings banks, from the initial stage," Lee said during a meeting with senior secretaries, according to presidential spokesman Park Jeong-ha.
"We have to conduct expert reviews on these bills, including whether they violate the Constitution or what side effects would happen when they are enacted," he said.
The remark suggests that Lee could veto the savings bank bill if it passed through parliament.
The special bill calls for the government to use a deposit protection fund to reimburse individual customers and bond investors of the nation's suspended savings banks for losses over 50 million won ($44,700). The current law guarantees only up to 50 million won in deposits.
If passed, over 82,000 bank account holders and bond investors who were not compensated by the failed savings banks are expected to get their money back from the government. The total amount is estimated at about 102.5 billion won. (Yonhap)