ASSEMBLY SPEAKER MEDIATES BUDGET DISPUTE

[Anchor Lead]

The Chairman of National Assembly Kim Jin-pyo presented the last mediation offer Thursday, the due date for passing next year's budget bill, in an attempt to mediate between the continuing dispute over corporate tax cuts. Kim proposed to lower the maximum rate of corporate taxes by one percentage point, and urged rival parties to reach an agreement before the deadline on Thursday.

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National Assembly Speaker Kim Jin-pyo made a new attempt to mediate between the rival parties' continuing dispute over next year's budget. In a meeting with the heads of the two parties held this morning, Kim proposed to lower the maximum rate of corporate taxes by one percentage point. This is a revision from his earlier offer of a three-percentage point cut with a two-year suspension. The parliamentary speaker presented it as a last attempt to mediate between the rival parties that have failed to reach an agreement over the government's proposal to lower the maximum rate from the current 25 percent to 22 percent.

[Soundbite] Kim Jin-pyo(Nat’l Assembly speaker) : "I hope the corporate tax will be reduced even if its only by 1%p to attract direct foreign investments."

Regarding another thorny issue of the budgets for the interior ministry's police bureau and the justice ministry's personnel information management team, Kim proposed to slash them as the Democratic Party wants. But the budgets are added to reserve funds for future decisions. He asked the rival parties to reach an agreement before the deadline on Thursday, saying it is unwise to continue the political dispute over some 500 million won, which is a fraction of the total 639-trillion-won budget. The ruling and main opposition parties showed different reactions.

[Soundbite] Joo Ho-young(Floor Leader, People Power Party) : "I am asking the Democratic Party to make a concession for great causes and allow the government to work."

[Soundbite] Park Hong-keun(Floor Leader, Democratic Party) : "Whether or not to approve the budget proposal is up to the gov’t and ruling party. So we will wait and see what new stance they will come up with."

The two parties will each hold a general meeting of lawmakers this afternoon to discuss whether or not to accept the parliamentary speaker's proposal. Based on the results of the discussions, they will also decide on whether or not to convene a regular parliamentary session and vote on the budget bill.