Gov't Stimulus
The pending economic stimulus bills that President Park Geun-hye urged several times in person to pass as soon as possible, may be passed in the provisional session of the National Assembly being held on April 7.
Some say that the result is uncertain, since the ruling party and the opposition are in sharp disagreement over public employees’ pension reform plan and the special Sewol bill, along with the parliamentary by-elections on April 29.
The economic stimulus package, for which the government has requested approval by the National Assembly, consists of nine bills, including the “Fundamental Law for Service Industry Development,” “Tourism Promotion Act,” “Special Act on Designation and Management of Free Economic Zones,” and the “Capital Market and Financial Investment Business Act,” called the crowd funding law.
The Fundamental Law for Service Industry Development will most likely be passed, as the Saenuri Party stepped back from its position that it is impossible to boost R&D in the medical industry except for the health and medical services sector.
On the Tourism Promotion Act, which allows building hotels within 200 meters of schools, the parties are still in disagreement, and public opinion is strongly against it. Therefore, it is not clear whether the law will be passed. Also, there is still a conflict between the parties about the so-called crowd funding law, which raises funds for start-ups.
For the subcontract act, which protects small businesses in subcontract transactions between large and small companies, the opposition parties are also pitted against each other over whether or not mid-sized companies should be included in the protections.
The Saenuri Party said, “As external factors such as low interest rates and low oil prices and internal factors including the high intensity economic stimulus plan of the government overlap with each other, economic sentiment is improving. With the opposition party blocking the passage of nine bills related to economic stimulation, it has become an obstacle to recover economic sentiment.”
Meanwhile, there is a predominant opinion that the National Assembly is unlikely to pass the economic stimulus bills, as the New Politics Alliance for Democracy is focusing on the minimum wage act, the bills to raise the top tax rates of corporate and income taxes, along with the special Sewol bill.