The National Assembly opens its extraordinary session Monday that is anticipated to be a heated battleground between the rival parties over the government’s plans to stimulate the real estate market and introduce a supplementary budget.

The ruling Saenuri Party and the main opposition Democratic United Party entered into the session that will last through the end of this month with more pressure to display compatibility as the country is faced with looming and heightened economic and security threats.

Upon escalating threats of a war from North Korea, which were seen to weigh down the already strained economic health of the country, the political parties have in unison been calling for a resolution of the tension.

The Saenuri Party urged the opposition’s cooperation in the coming weeks.

“As the economic situation is difficult, we can only solve the problems associated with the people’s livelihoods when we urgently pass the relevant bills,” said Saenuri senior vice floor leader Rep. Kim Gi-hyeon.

The DUP in turn said it was willing to fully cooperate as long as the direction was right.

“We will be directing April’s Assembly session in a direction that can substantially help the people through the ‘selection and concentration (strategy),’” said DUP floor leader Rep. Park Ki-choon.

The parties are to confront around 60 to 80 bills mostly related to the economic, social and welfare sectors. One of the key agenda is the real estate stimulation package announced by the Park Geun-hye administration on April 1. How to compile the supplementary budget is also a sticking point. While both parties agree on the need for both measures, they differ on details.

According to the government, transaction tax for houses worth 900 million won or less at a size of 85 square meters or smaller will be reduced for five years. A household with 60 million won of combined annual income or less will also be exempted from the acquisition tax when purchasing a house worth 600 million won or less at a size of 85 square-meters or less.

However, the DUP suggests lowering the threshold for the tax reduction from 900 million to 600 million, and for the acquisition tax exemption, from 600 million to 300 million won.

The two sides are also at odds over the size, source and use of the supplementary budget. The government is pushing for a supplementary budget of around 1.7 trillion won to 1.9 trillion won to fill up the anticipated tax revenue shortage and to be invested in economic stimulation.

The two major parties not only differ on the anticipated amount of the tax revenue shortfall, but also stand apart over how to secure the finances. The government and the ruling party are leaning towards issuing national debt, while the DUP prefers increased taxation.

By Lee Joo-hee (jhl@heraldcorp.com)