PLENTY TO FIGHT ABOUT IN 18TH NATIONAL ASSEMBLY

C O N F I D E N T I A L SEOUL 001831
C O R R E C T E D COPY -- First para second sentence

SIPDIS

E.O. 12958: DECL: 09/16/2018
TAGS: PGOV PREL PINR KS KN
SUBJECT: PLENTY TO FIGHT ABOUT IN 18TH NATIONAL ASSEMBLY

Classified By: POL Joseph Y. Yun. Reasons 1.4 (b,d).


1. (C) Summary: The 18th National Assembly's regular session
began on September 1 after nearly three months of deadlock.
Though the opposition Democratic Party (DP) finally ended its
boycott, this session is unlikely to be smooth sailing for the
Grand National Party(GNP),despite its significant majority in
the legislature. Economic issues -- tax reform; deregulation;
ratification of the Korea-U.S. Free Trade Agreement (KORUS FTA),
which the Lee Myung-bak Administration has not yet sent to the
National Assembly; and privatization -- are expected to dominate
deliberations this fall. GNP economic policies and media
reforms are already drawing fire from the opposition and pundits.
The resurgence of territorial disputes with Japan and China as
well as concern over North Korea's stability will preoccupy
the Foreign Affairs, Trade and Unification Committee. The DP
managed to assert disproportionate influence over the committee
formation process -- a trend that could continue in the
regular session as the GNP struggles to cope with President
Lee Myung-bak's still low approval ratings. End Summary.

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Deadlock Ended
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2. (C) The 18th National Assembly officially began on May
30, however, the DP boycotted the session because of
disagreement about the U.S.-ROK beef deal. After an 82-day
dispute, the parties broke the deadlock by agreeing to amend
the law that establishes the regulatory framework for
importing foreign meat. The parties also agreed to convene
the regular session of National Assembly and form committees
-- the GNP chairs 11 out of 18 committees, while the DP and
the Liberty Forward Party coalition (LFP) chair six and one,
respectively. At present, the GNP has 172 seats out of 299
with eight more set to join in the near future. Media and
pundits estimate that 70-83 of the GNP legislators are
pro-Park and assembly sources note that Park's group will
likely continue to grow.

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National Assembly Schedule
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3. (SBU) According to the National Assembly Act, the regular
session convenes each year on the first of September for 100
days. During the regular session, each standing committee
conducts an annual inspection of state administration for 20
days, normally beginning on September 10 (due to the Chuseok
holiday, the inspection will take place from October 6-25).
The regular session is scheduled to end on December 9.


4. (SBU) On September 1, floor leaders of the GNP, DP, and
the LFP convened meetings to discuss the schedule and to
appoint executive secretaries in all the committees. The
parties, however, failed to agree on an official schedule for
the regular session because the DP, the Democratic Labor
Party (DLP),and the LFP requested a special audit of
President Lee's recent moves to gain control over
broadcasting companies and to control Netizens. The GNP
refused this demand saying the annual parliamentary audit
would deal with the issue.

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It's the Economy, Stupid
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5. (SBU) Leading up to the regular session, parties held
workshops to determine their strategies. The ruling GNP
named the regular session the "Economy First National
Assembly," noting that it would strive to reinvigorate the
lethargic economy and improve people's livelihood. The GNP
will mainly focus on six tasks: ratification of the KORUS FTA
(which the Lee Administration has not yet submitted to the
National Assembly); public sector reform; taxation reform;
deregulation; people's welfare; and rearrangement of leftist
laws and ordinances.


6. (SBU) The DP, meanwhile, declared the regular session the
"Rescue People's Livelihood National Assembly," claiming the
GNP's economic and financial policies are only beneficial to
the rich. The DP opposes the GNP's plan to privatize some
state-run companies -- such as Incheon Airport Corporation --
and the deregulation policies for conglomerate companies --
like the abolishment of the prohibition on cross shareholding
among the affiliates of conglomerates. The DP also disagrees
with the GNP's taxation reforms as well as planned
deregulation policies on real estate. Instead, the DP plans
on cutting the value-added tax and property tax for members
of the middle class who own inexpensive houses.


7. (C) While the battles over economic policies will largely
be fought in the Strategy and Finance Committee and, for the
KORUS FTA, in the Foreign Affairs, Trade and Unification
Committee, assembly sources said the Culture, Sports,
Tourism, Broadcasting, and Communication Committee will be
home to the fiercest clashes. Opposition DP lawmakers and
NGO leaders have voiced public protests against President Lee
and the GNP's proposed policies that would privatize some
broadcasting companies, allow newspapers to own broadcasting
companies, and regulate Internet portal websites. Also the
progressives have alleged that Lee is exerting undue control
over broadcasting companies because he appointed
close-associates to head YTN (an all-news, state run
broadcasting company). Recently, the GNP and the Ministry of
Government Legislation articulated a new crime, "Cyber
Contempt," to apply to those who slander and spread false
facts in the Internet; however, the DP argued that the law
may violate freedom of expression and be used to suppress
Internet users who criticize government and instigate street
rallies.

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Comment
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8. (C) The GNP, which dominates the National Assembly, has
vowed to fix the left-wing policies of the two previous
administrations, and already has begun to propose reforms.
Despite the overwhelming majority of seats under conservative
control, the current National Assembly will not be a
pushover. Lee Myung-bak's low approval rating and the DP's
nothing-to-lose attitude could make many of the ruling
party's initiatives surprisingly difficult to pass.
VERSHBOW