The National Assembly may hold off on the controversial bill to compensate depositors in suspended savings banks beyond the legal limit due to a backlash from financial circles and the president’s criticism of the bill as populist.

The ruling Saenuri Party called for further deliberation on the bill, while the main opposition Democratic United Party said that it should be approved soon, preferably within the month.

“The judicial committee should thoroughly examine the bill, before forwarding it to the general meeting,” said Rep. Hwang Woo-yea, the SP’s floor leader.

It was earlier expected that the corresponding bill, after passing the judicial panel Wednesday, would be submitted to the general meeting on Thursday.

“The panel is also to consult the Financial Service Commission chairman or the justice minister and review the complaints raised by financial circles and the media,” Hwang said.

The related discussion need not necessarily be wrapped up before the April 11 general elections as legitimacy is more important than speed, he added.

Rep. Woo Yoon-keun, the DUP’s negotiator for the judicial committee, also acknowledged the need for more consideration.

“The given issue and the involved compensation amount call for the highest prudence,” he said.

DUP floor leader Rep. Kim Jin-pyo nevertheless pledged to make efforts to have the bill passed within the month.

The parliamentary state affairs committee last week approved the bill to make up 55 percent of financial losses over the legally guaranteed 50 million ($44,484) for the savings banks depositors and its subordinated bonds holders.

The compensation, estimated to reach 100 billion won, is to be drawn from a special budget account of the Korea Deposit Insurance Corporation.

However, financial institutions immediately issued a joint statement last Friday, condemning state affairs committee members for passing it.

Also, President Lee Myung-bak Monday called the plan a “populist move” and hinted that he could exercise his veto, should the parliament enact the bill.

“I instruct you to review whether the legislation runs afoul of the Constitution in any way and what side-effects could be brought about should it be implemented,” Lee was quoted by his spokesperson as saying during a meeting of his senior secretaries.

However, the state affairs committee chairman Rep. Huh Tae-yeol denied the possibility of a presidential veto.

“The parliament may win over the president’s veto, in case two thirds or more so agree,” said Huh Tuesday in a radio interview. “The financial losses were partially caused by the government’s lack of supervision so should be backed by state funds.”

By Bae Hyun-jung (tellme@heraldcorp.com)