[2026 National Assembly]② Ruling Party Pushes "Mega Clusters," Opposition Focuses on "Real Estate" Legislation... Differences Persist on Tax Reform

Ruling Party Focuses on Supporting Lee Administration's Key Policy Tasks
Moves to Legislate Three Major Mega Projects
Opposition Prioritizes Housing Supply
"Defending the Golden Window"
Tax Reform Bill Becomes a New Battleground This Year

In this year's regular session of the National Assembly, both the ruling and opposition parties are gearing up for a legislative competition, with the ruling party focusing on the passage of three major mega projects and the opposition party concentrating on real estate-related bills. While both sides have expressed their willingness to cooperate on livelihood bills that are not contentious, disagreements are emerging over the revised tax reform bill.

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Ruling Party Moves Full Force on Mega Project Legislation

The Democratic Party is focusing its efforts on legislation to support the three major mega projects—semiconductors, data centers, and physical artificial intelligence (AI)—which are core national policy goals of the administration led by Lee Jae-myung. Key bills to be addressed include the Electric Utility Act, the Waterworks Act, and the Framework Act on Water Management, all aimed at ensuring a stable supply of electricity and water. Amendments to the Industrial Sites Act and the Building Act, which are crucial for infrastructure development, are also among the priorities. Other legislative proposals under discussion include the Special Act on Mega Clusters, the Industrial Digital Transformation Act, and the National Advanced Strategic Industries Act, all geared toward enhancing corporate support and competitiveness.

The Democratic Party is also prioritizing price stabilization, real estate policy, support for small business owners, and capital market reform. These efforts include the Urban Maintenance Act to promote redevelopment and reconstruction, the Real Estate Supervisory Agency Establishment Act to curb real estate speculation, the Yongsan Park Special Act focusing on housing supply within Yongsan Park, and amendments to the Inheritance and Gift Tax Act to prevent share price suppression.

According to spokesperson Lee Juhui, Democratic Party Policy Committee Chair Kwon Chilseung said at a party workshop on August 27, "The main goal is to support the administration, secure future growth engines, and create legislative achievements in livelihood and reform that the public can feel." On the same day, Jeon Junho, Senior Deputy Floor Leader for Operations, stressed the party's legislative determination, noting, "The implementation rate of national policy tasks is currently very low, around 30%."

Opposition Focuses on Real Estate Supply and Legislative Pushback

The People Power Party is promoting legislation to curb what it considers the administration's overreach and to protect the livelihoods of the people. It plans to pursue 133 legislative tasks across seven priority areas, including housing stability, economic growth, and the future of youth. Policy Committee Chair Lim Ija stated at a party seminar on August 28, "We will defend this golden window during the regular session of the National Assembly."

The People Power Party is determined to counter the ruling party's push to amend the Yongsan Park Special Act and, instead, plans to focus on expanding housing supply and easing regulations. Specific legislative proposals include the Urban and Residential Environment Maintenance Act to improve the business environment for private sector reconstruction and expand urban housing supply, abolition of the Reconstruction Windfall Gains Recapture Act to eliminate excess profit charges for reconstruction, and the Urban Development Act to boost housing supply without increasing fiscal spending.

Other legislative tasks include a re-amendment of the so-called "Yellow Envelope Act" (revised Trade Union Act), a law to support small and medium-sized enterprise (SME) succession, and special acts for the semiconductor and shipbuilding industries aimed at economic recovery. The party also plans to examine bills to retain the prosecution's supplementary investigative authority and to pursue police reform.

Tax Reform Stalemate Amid Calls for Bipartisanship

A tug-of-war in the legislative process appears inevitable again this year. Although both parties' policy committees have pledged to cooperate through regular meetings, differences in perspective are evident when it comes to mega projects and real estate issues. The People Power Party may even resort to a filibuster (unlimited debate). In response, the Democratic Party plans to use the expedited processing system for urgent bills, which has been shortened under the revised National Assembly Act.

The government has finalized and submitted the "2026 Tax Reform Bill" to the National Assembly, restoring the original taxation standards for comprehensive real estate holding tax and withdrawing plans to overhaul Individual Savings Accounts (ISA). However, conflict over the bill is expected to continue. People Power Party members on the National Assembly's Strategy and Finance Committee are opposing the additional tax increases contained in the reform plan.

This content was produced with the assistance of AI translation services.