[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 Y

In this year's regular session of the National Assembly, the ruling and opposition parties are entering a legislative competition, focusing on passing bills related to the three major mega projects and the real estate sector. While expressing their willingness to cooperate on the passage of livelihood-related bills on which there is no disagreement, differences in positions are emerging regarding the revised tax reform plan.

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Ruling Party Pursues All-Out Legislation for Mega Projects

The Democratic Party is focusing on enacting laws to support the three major mega projects—semiconductors, data centers, and physical artificial intelligence (AI)—which are key national tasks of the Lee Jaemyung administration. Key legislative targets include the Electric Utility Act, 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 and Development Act and the Building Act are also major tasks for infrastructure development. Other legislative priorities mention the Special Act on Mega Innovation Zones, the Industrial Digital Transformation Act, and the National Advanced Strategic Industries Act, all designed to boost corporate support and strengthen competitiveness.

The Democratic Party is also speeding up legislation on key issues like price stabilization, real estate policy, support for small businesses, and capital market reform. Notable items include the Urban Maintenance Act to promote redevelopment and reconstruction, the Real Estate Supervisory Agency Establishment Act to prevent speculation, the Yongsan Park Special Act for housing supply in Yongsan Park, and amendments to the Inheritance and Gift Tax Act to prevent efforts to depress stock prices.

According to spokesperson Lee Juhee, Policy Chief Kwon Chilsung of the Democratic Party stated at a party workshop on August 27, "Our main goal is to support government operations and secure new growth engines for the future, achieving tangible legislative results for the people's livelihoods and national reform." On the same day, Chun Jun-ho, Senior Deputy Floor Leader for Parliamentary Operations, emphasized legislative determination, noting, "The implementation rate of government tasks is very low, at about 30%."

Opposition Focuses on Fight Over Real Estate Leases and Supply

The People Power Party is seeking to prevent government overreach and protect public livelihoods through legislative action. The party plans to pursue 133 legislative tasks across 7 major sectors, including housing stability, economic growth, and future prospects for young people. At a party workshop on August 28, Policy Chief Lim Ija pledged to "defend the golden time during the regular session of the National Assembly."

In particular, the People Power Party plans to stand against the ruling party's efforts to revise the Yongsan Park Special Act, while focusing on expanding housing supply and easing regulations. Legislative priorities include the Urban and Residential Environment Maintenance Act to expand housing supply by increasing the viability of private-sector reconstruction projects, the repeal of the Excessive Rebuilding Profit Reclamation Act to abolish reconstruction surcharges, and the Urban Development Act, which seeks to increase housing supply without fiscal spending.

The party's legislative tasks also include revising the Yellow Envelope Act (amended Trade Union and Labor Relations Adjustment Act), supporting small and medium-sized business succession, and passing special acts for the semiconductor and shipbuilding industries to support economic recovery. The party also intends to review bills necessary for maintaining prosecutorial supplementary investigation rights and police reform.

Tax Issues Pose Challenges Amid Calls for Bipartisanship

It appears inevitable that there will be fierce confrontations in this year's legislative process. While both parties' policy committees have promised bipartisan cooperation through regular meetings, differences of opinion are already apparent on issues such as mega projects and the real estate sector. The People Power Party may consider using a filibuster (unlimited debate), while the Democratic Party plans to counter using the newly shortened fast-track (expedited bill review) procedures according to the revised National Assembly Act.

The government has confirmed the "2026 tax reform plan," which resets the comprehensive real estate tax threshold to its original standard and withdraws the proposed revision of the Individual Savings Account (ISA), and has formally submitted it to the National Assembly. However, conflict is anticipated, as People Power Party members of the National Assembly's Strategy and Finance Committee are opposing the additional tax increases included in the reforms.

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