BUDGET TALKS IN LIMBO AMID DEADLINE

[Anchor Lead]

The deadline for the National Assembly to approve next year's budget bill amounting to 639 trillion won is set at 12 a.m. tonight Korea time. However, rival parties failed to narrow down their differences related to the so called YOON SEOK YEOL, LEE JAE-MYUNG's budget, and it's become very unlikely for the National Assembly to pass the bill within the due date.

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The parliamentary budget committee's operation ended as of late last month and the task of budget deliberations has been transfered to a subcommittee, often referred to as a secretive closed-door consultation body. Rival party lawmakers continued consultations in the subcommittee but have failed to narrow their differences. The key sticking points are budgets related to public rental homes and pre-sale housing versus funds related to the relocation of the presidential office. There is also little progress in talks on cutting corporate taxes, delaying the implementation of a new tax on financial gains on investments like stocks, and setting the criteria on the comprehensive real estate holding tax.

[Soundbite] Joo Ho-young(Floor Leader, People Power Party) : "Compared to past years, progress is slow on budget talks."

[Soundbite] Park Hong-keun(Floor Leader, Democratic Party) : "We will remain open to talks to the very last moment."

Ruling and opposition parties intend to seek a compromise in negotiations with the approaching legal deadline in mind. However partisan gridlock has further deepened with the opposition's dismissal motion on Interior Minister Lee Sang-min. The main opposition Democratic Party's attempt to include an item about reporting the motion during the plenary session, which is to handle the budget bill, has been met by fierce protest by the ruling People Power Party, which called such a move unacceptable.

[Soundbite] Kim Mi-ae(Floor spokesperson, PPP) : "The agreement was a mere disguise to fuel political strife to protect Lee Jae-myung and conceal the DP's parliamentary dictatorship."

[Soundbite] Lee Soo-jin(Floor spokesperson, DP) : "A bizarre situation is unfolding where the ruling party is taking the budget hostage to safeguard the interior minister."

If the confrontation continues, next year's budget may not even be approved by December 9th, the last day of the regular National Assembly. Observers speculate the deadlock may trigger an unprecedented situation where a "provisional" budget could be drawn up based upon the previous year's budget.