Seoul, Dec 1 (NationPress) In a significant development, rival political factions have achieved a preliminary consensus on Monday to maintain the budget for the upcoming year in line with the government's original framework. This comes as both parties engage in intense last-minute discussions, just a day ahead of the National Assembly's mandated deadline for bill approval, as reported by officials.

The ruling Democratic Party (DP) and the principal opposition People Power Party (PPP) have faced ongoing disputes concerning crucial aspects of the proposed 728 trillion-won budget (USD498 billion), particularly regarding financing for local gift certificate initiatives. Additional contentious issues include allocations for policy funds, special activity expenditures from the presidential office, and various taxes related to education, as highlighted by Yonhap News Agency.

Following an extensive meeting, DP Deputy Floor Leader Moon Jin-seog informed the media that discussions concerning expenditure reductions have reached a conclusion, with both parties agreeing to limit the overall cuts to approximately 4 trillion won.

He also emphasized the parties' acknowledgment of the necessity to enhance funding for vital items, including mandatory spending, and that discussions on detailed adjustments will persist.

“The two sides seem to be moving closer to finalizing an agreement,” another DP representative remarked to Yonhap News Agency.

A major sticking point has been the corporate tax rate. The DP aims to reverse tax reductions implemented during the previous Yoon Suk Yeol administration, while the PPP opposes increasing taxes, citing the potential burden on businesses.

The two factions have also disagreed regarding the PPP's call for a parliamentary investigation into the prosecution's choice not to appeal a lower court's decision involving a controversial real estate project in Seongnam, Gyeonggi Province.

This case revolves around accusations that obscure private asset management companies, such as Hwacheon Daeyu, were permitted to gain substantial profits from the 2015 Daejang-dong development while President Lee Jae Myung served as mayor.

“We will guarantee that the inaugural budget of the Lee Jae Myung administration is approved within the stipulated timeframe,” stated DP leader Jung Chung-rae during the party's supreme council meeting earlier in the day.

Simultaneously, the PPP has urged the DP to reduce what it has labeled as “populist expenditure,” insisting on cuts to the 1.15 trillion won allocated for local gift certificate programs.

At the PPP's supreme council meeting, Representative Kim Do-eup criticized the DP's proposal for a corporate tax increase, arguing that it would adversely affect all businesses, including small and medium-sized enterprises, at a time when they are already facing challenges from high exchange rates, inflation, and interest rates.

Floor leaders from both parties—DP floor leader Rep. Kim Byung-kee and his PPP counterpart, Rep. Song Eon-seog—gathered earlier at the National Assembly to address their differences.

Although the legal deadline for passing the budget plan is set for Dec. 2, the National Assembly has a history of missing deadlines due to political disputes between opposing parties.