Protestant opposition dooms Islamic bond bill

The ruling Grand National Party has caved in to pressure from Protestant groups over a proposal on tax exemptions for Islamic bonds issued by companies to help domestic borrowers tap Mideast oil money.

The party reportedly reached a consensus Monday that putting to public debate the so-called sukuk bond bill is difficult after shunning deliberation of the proposal in this month`s extraordinary parliamentary session amid strong Protestant opposition.

At a Sunday meeting with the administration and the presidential office, the party put the brakes on the plan for the bill, insisting that the party determine the bill`s fate.

At a supreme council meeting Monday, party floor leader Kim Moo-sung is known to have said the situation does not allow the party to proceed with the bill without seeking the Protestant community’s understanding.

On Saturday, a party lawmaker at the ruling party’s request conveyed to Protestant groups a message that the party will not proceed with the sukuk bill. The party leadership also asked the lawmaker to say the party chairman’s pledge to convey the Protestant position on the bill to the National Assembly meant the party intends to snub the bill.

The message suggests that the party urgently had to take on its uncomfortable relationship with Protestants ahead of next year’s presidential and general elections.

The Rev. David Yonggi Cho, one of the country`s most influential Protestant evangelists, is known to have taken a step back Saturday after declaring war on President Lee Myung-bak. Conservative Protestant groups took a wait-and-see attitude on the matter because the church and the party had reached an understanding on the scrapping of the controversial bill.

The administration seems to be seeking a new opportunity to push ahead with the bill after the April 27 by-elections. An official at the Strategy and Finance Ministry said the government has no choice but to take its time in seeking a new momentum for the proposal because of Protestant opposition.

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