RIVAL PARTIES STILL AT ODDS ON BUDGET

[Anchor Lead]

Rival parties are STILL at odds over reaching an agreement for next year's budget bill. The extended due date was Thursday, and despite National Assembly speaker Kim Jin-pyo's proposal of a second mediation offer and the Democratic Party's decision to accept the offer, this time around, the People Power Party refused to make a decision and did not accept the plan.

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National Assembly Speaker Kim Jin-pyo proposed a second compromise to the floor leaders of the ruling and opposition parties. He repeatedly asked both sides to come to an agreement by proposing lowering the corporate tax rate ceiling by one percentage point. The rival blocs have been fighting over the government plan to lower the corporate tax rate for the highest bracket from the current 25 percent to 22.

[Soundbite] Kim Jin-pyo(Nat’l Assembly speaker) : "I hope that lowering the rate by even 1%p would attract more foreign direct investments."

Kim had a suggestion for another key issue, the budgets for the Police Bureau in the Ministry of Interior and Safety and the Justice Ministry's Personnel Information Management Bureau. He proposed that the budgets be cut as the Democratic Party had maintained, but the reduced amount should be put in the reserve to be decided later. The National Assembly Speaker asked both sides to come to an agreement, saying that refusing to compromise on the difference of some 500 million won out of a 639 trillion-won budget bill is a typical case of being penny-wise and pound-foolish in trying to justify each party's position. The main opposition bloc decided to accept the arbitration plan.

[Soundbite] Lee Jae-myung(Chair, Democratic Party) : "The arbitration plan does not coincide with our position, but we decide to accept it given the recent economic difficulties."

The DP also suggested that the budget plan be approved first before conducting a national investigation of the Itaewon crowd crush. The ruling People Power Party postponed its decision on whether they will accept the arbitration plan or not.

[Soundbite] Joo Ho-young(Floor Leader, People Power Party) : "Lowering 1%p of corporate tax would hardly make a difference. It's a tax cut in name only with no actual benefit."

The PPP said the two sides differ on six or seven other issues, which should be addressed first before making a decision. This response by the ruling bloc is seen as a rejection of the arbitration plan, which will likely cause more delays in budget approval.