By Kim Hyo-jin
The National Assembly passed the budget bill for the next year during a plenary session early Wednesday, with the main opposition Liberty Korea Party (LKP) boycotting the vote in protest of some items in it.
The LKP's protest is likely to produce political deadlock although the Assembly has many bills to pass during the remaining period of the regular session that finishes Saturday.
Of 178 lawmakers participating in the 298-seat Assembly, 160 voted in favor while 15 voted against and three abstained.
LKP members did not participate in the vote but staged a protest, holding signs reading "Against socialist budget bill," and "Against the bill proposed in collusion."
The endorsement of the Moon Jae-in government's first budget came four days after the legal deadline, due to clashes between the ruling and opposition parties over the creation of new public jobs and a corporate tax hike.
The 428.8 trillion-won ($394.4 billion) budget approved was 137 billion won lower than the government's original one, primarily reflecting the opinions of the ruling Democratic Party of Korea (DPK) and the minor opposition People's Party.
The budget will be used to add 9,475 new jobs in the public sector as part of the government's key job creation plan, and to expand welfare programs including child care allowances.
To fund the increased spending, the Assembly also approved a revised tax code intended to impose more taxes on big businesses and top earners.
The corporate tax rate for businesses earning over 300 billion won annually will be raised to 25 percent from the current 22 percent, which may affect the top 77 companies.
Of the approved budget, the biggest share (34 percent) was allocated to welfare and labor policies, up 11.7 percent from the previous year.
The government is expected to set aside 2.97 trillion won to support "job sustainability" at small businesses, to offset the cost increase from a minimum wage hike.
Families with a child up to five years old will receive 100,000 won monthly beginning September next year, except for those who are in the highest 10 percent income bracket. The basic pension for senior citizens will also be increased from the current 206,050 won to 250,000 won, also beginning in September.
The welfare budget, however, was reduced from the government's original proposal because the parties decided to delay the implementation of the welfare programs to September out of concerns that it may affect the upcoming local election in June.
The defense budget rose sharply to 43.15 trillion won, up 7 percent from the previous year, reflecting growing security concerns amid nuclear and missile provocations by North Korea.
LKP floor leader Chung Woo-taik tentatively agreed to the budget during last-minute negotiations among floor leaders of the rival parties, Monday, but soon faced a strong backlash from his party members.
Lawmakers from the party decided to cancel the agreement after long hours of discussions Tuesday, and boycotted the vote.
"We are sorry that we failed to prevent a budget that will ruin the state coffer," said LKP spokesman Rep. Chang Je-won. "The political forces that colluded behind the deal should take responsibility for a likely fiscal crisis if that should happen," he said, claiming that the People's Party voted for the budget in return for the DPK promising to support bills in favor of the People's Party.
Later, the LKP also boycotted other Assembly sessions.
The National Assembly passed the budget bill for the next year during a plenary session early Wednesday, with the main opposition Liberty Korea Party (LKP) boycotting the vote in protest of some items in it.
The LKP's protest is likely to produce political deadlock although the Assembly has many bills to pass during the remaining period of the regular session that finishes Saturday.
Of 178 lawmakers participating in the 298-seat Assembly, 160 voted in favor while 15 voted against and three abstained.
LKP members did not participate in the vote but staged a protest, holding signs reading "Against socialist budget bill," and "Against the bill proposed in collusion."
The endorsement of the Moon Jae-in government's first budget came four days after the legal deadline, due to clashes between the ruling and opposition parties over the creation of new public jobs and a corporate tax hike.
The 428.8 trillion-won ($394.4 billion) budget approved was 137 billion won lower than the government's original one, primarily reflecting the opinions of the ruling Democratic Party of Korea (DPK) and the minor opposition People's Party.
The budget will be used to add 9,475 new jobs in the public sector as part of the government's key job creation plan, and to expand welfare programs including child care allowances.
To fund the increased spending, the Assembly also approved a revised tax code intended to impose more taxes on big businesses and top earners.
The corporate tax rate for businesses earning over 300 billion won annually will be raised to 25 percent from the current 22 percent, which may affect the top 77 companies.
Of the approved budget, the biggest share (34 percent) was allocated to welfare and labor policies, up 11.7 percent from the previous year.
The government is expected to set aside 2.97 trillion won to support "job sustainability" at small businesses, to offset the cost increase from a minimum wage hike.
Families with a child up to five years old will receive 100,000 won monthly beginning September next year, except for those who are in the highest 10 percent income bracket. The basic pension for senior citizens will also be increased from the current 206,050 won to 250,000 won, also beginning in September.
The welfare budget, however, was reduced from the government's original proposal because the parties decided to delay the implementation of the welfare programs to September out of concerns that it may affect the upcoming local election in June.
The defense budget rose sharply to 43.15 trillion won, up 7 percent from the previous year, reflecting growing security concerns amid nuclear and missile provocations by North Korea.
LKP floor leader Chung Woo-taik tentatively agreed to the budget during last-minute negotiations among floor leaders of the rival parties, Monday, but soon faced a strong backlash from his party members.
Lawmakers from the party decided to cancel the agreement after long hours of discussions Tuesday, and boycotted the vote.
"We are sorry that we failed to prevent a budget that will ruin the state coffer," said LKP spokesman Rep. Chang Je-won. "The political forces that colluded behind the deal should take responsibility for a likely fiscal crisis if that should happen," he said, claiming that the People's Party voted for the budget in return for the DPK promising to support bills in favor of the People's Party.
Later, the LKP also boycotted other Assembly sessions.
