Finance committee to scrutinize real estate tax reform, US investment plans
Financial policy panel to target single-stock leveraged ETFs, bank data breaches
Foreign affairs and defense panels set for showdowns over North Korean mines, Ukrainian POWs
The ruling and opposition parties are expected to clash repeatedly during the 2026 national audit over a range of contentious issues — from Chief Justice Jo Hee-dae's refusal to re-nominate Supreme Court justices, to controversy over single-stock leveraged ETFs, a North Korean landmine explosion in the Demilitarized Zone, and a string of customer data breaches at major commercial banks.
According to political sources, the National Assembly's Legislation and Judiciary Committee will open the national audit Tuesday with inspections of the Supreme Court and the Court Administration. An audit of the Ministry of Justice will follow Thursday, with the Corruption Investigation Office for High-ranking Officials scheduled for Oct. 13.
Chief Justice Jo met reporters outside the Supreme Court building in Seocho-gu on Monday and said he had heard they had many questions. "I understand there are many things you are curious about," he said. "Going forward, through the national audit and other channels, I will make sure anything necessary is conveyed through the court's spokesperson."
However, analysts say it is difficult to predict how forthcoming Jo will be when he appears before the committee. At last year's national audit, he read a prepared opening statement and then left without taking an oath as a witness or answering questions from Democratic Party lawmakers.
The Finance and Economy Committee will begin its audit Tuesday with the Ministry of Economy and Finance, followed by the Ministry of Planning and Budget on Thursday, the Bank of Korea on Oct. 12 and the National Tax Service on Oct. 13. Key issues expected to dominate the proceedings include recently announced US investment plans, real estate tax reform, and the government's plan to operate a future-response fund worth 162 trillion won ($119 billion).
At the Financial Policy Committee, attention is focused on the controversy surrounding the introduction of single-stock leveraged ETFs and on whether the heads of major commercial banks will be called as witnesses over a series of recent customer data breaches.
Rep. Park Sang-hyeok of the Democratic Party of Korea, who leads his party's side on the committee, said Friday on Facebook that he would summon the chiefs of the five major commercial banks as witnesses. "With bank customer data breaches happening repeatedly, I will call the heads of the five major commercial banks as witnesses at this national audit and hold them strictly accountable for the causes and responsibility," he said.
Park added that while business executives should generally be kept out of national audit proceedings, the situation at banks — a heavily regulated industry entrusted with the public's assets and credit information — had become impossible to ignore. "I will do my utmost to call the heads of commercial banks as witnesses, rigorously question them on why these security incidents keep recurring and who bears responsibility, and work to put in place measures that will give the public peace of mind," he said.
However, political observers note that the deadline for designating witnesses for the Financial Services Commission audit, scheduled for Thursday, has already passed. The more likely venue for summoning the five major bank chiefs may therefore be the Financial Supervisory Service audit on Oct. 19.
Meanwhile, People Power Party members of the Financial Policy Committee held a press conference Thursday, criticizing the Democratic Party for blocking all 39 general witnesses the PPP had requested in connection with the single-stock leveraged ETF controversy. They also pressed strongly for Kim Yong-beom, former Cheong Wa Dae policy chief, to be called as a witness.
The committee had previously approved 18 general witnesses and two reference witnesses, excluding Kim. Those approved include Paul Singer of US hedge fund Elliott Management, Homeplus CEO Jo Ju-yeon and Coupang Inc Executive Vice President Ju Seong-won.
The Foreign Affairs and Unification Committee will audit the Ministry of Foreign Affairs on Tuesday and the Ministry of Unification on Wednesday. Fierce exchanges between the ruling and opposition parties are expected over the Lee Jae Myung government's handling of the repatriation of North Korean prisoners of war held by Ukraine and its response to the North Korean landmine explosion in the DMZ.
The National Defense Committee will begin its audit Wednesday with the Ministry of National Defense, followed by the Joint Chiefs of Staff on Thursday, the Defense Acquisition Program Administration and the Agency for Defense Development on Oct. 13, Army headquarters on Oct. 19, and Navy and Air Force headquarters on Oct. 20. Key areas of scrutiny are expected to include a full investigation into the DMZ landmine explosion, Hanwha Group's expansion of its stake in Korea Aerospace Industries, delays in the Korean Destroyer Experimental program and the follow-on operational deployment of the KF-21 fighter jet.
bigroot@heraldcorp.com
