Bipartisan consensus reached to address pending legislative tasks

The People Power Party and the Democratic Party of Korea decided to pass the Deposit Fraud Relief Act as the first bill of the 22nd National Assembly to address economic issues. The bill, which was passed by the main opposition at the end of the 21st National Assembly and discarded after President Yoon Suk Yeol exercised a veto, was aligned by consensus in three months. There is growing attention on whether this will be an opportunity to break the vicious circle of political strife: the opposition party’s unilateral enforcement of legislation, presidential veto, and repeal of the bill.

According to the ‘Special Act on Support for Victims of Deposit Fraud and Housing Stability’ passed by the Legislative Review Subcommittee of the Land, Infrastructure, and Transport Committee of the National Assembly on Monday, the Korea Land and Housing Corporation (LH) will be the successful bidder for houses sold at auction and lease the houses for free to the victims of the fraud for up to 10 years. After the free lease period ends, it will be rented for another 10 years at a price similar to public lease. The ruling and opposition parties plan to process the bill at the plenary session next Wednesday.

This bill differs from the Democratic Party Korea’s ‘ Compensation First, Recovery Later’ bill, which calls for compensating the deposit to victims in cash and recovering the funds by selling the house later. The Democratic Party of Korea accepted the 10-year free lease proposed by the government on the grounds that its effect was likely to be similar to cash support and that further delay of the legislation would increase the pain of the victims.

The agreement is expected to accelerate the passage of long-standing pending bills on economic issues. The bill on excluding parents who have abandoned child-rearing duties from inheritance and the 'Childcare Leave Expansion Act,' which increases the period of parental leave per child to one and a half years, are likely to be passed. Parties are also aligned regarding the ‘National Basic Power Grid Expansion Act,’ which is crucial to building infrastructure for high-tech industries. Though there are outstanding differences in opinion on the Nurses Act, which legislates PA nurses to fill the current medical gap, both parties have a consensus on the need for the legislation.

The National Assembly's legislative function has been neglected since the general elections, changes in party leadership, political impeachment, and hearings. The National Assembly has been criticized for neglecting the handling of the Deposit Fraud Relief Act, as no legislation has been in place for more than three years since the damage occurred. A series of legislative tasks must be resolved, such as the ‘Semiconductor Act.’ Ruling and opposition parties must collaborate and reach a consensus on essential legislative tasks pending approval.