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By Ahn Chang-hyun, Staff Writer

Amid increasing objections from South Korea’s Protestant community, an “Islamic bond bill” currently being pursued by the government faces a low likelihood of passage during the current National Assembly session. The bill in question would change the tax system to give tax exemption benefits for sukuk, financial bills in the Islamic religion that prohibit the earning of interest, granting the holders tax exemption on profits.

While the ruling Grand National Party (GNP) had initially intended to pass the bill at the February extraordinary session, it reached a decision to hold off on the passage at a floor strategy meeting Tuesday. The minor ruling Liberty Forward Party (LFP) Chairman Lee Hoi-chang and a prominent lawmaker in the Park Geun-hye faction objected to what they called “Protestant intimidation tactics,” but the GNP ignored their objections. The reason is that the prospects of losing support of the Protestant community at a time when the party is experiencing severe discord with the Buddhist and Catholic communities over the Lee Myung-bak administration’s Four Major Rivers Restoration Project verge on the nightmarish for the GNP.

The main opposition Democratic Party (DP) has also taken a step back. Officially, it has objected to the bill, calling it “an attempt by the government to bring in capital from the Arab world for a United Arab Emirates nuclear power plant construction loan.”

However, the party has unquestionably been watching for the response from the Protestant community.

DP Policy Committee Chairman Jun Byung-hun said Friday, “If a religious conflict erupts over the introduction of an Islamic bond act, isn’t that ultimately a loss for society no matter the economic benefits are?”

While politicians have backed off, the Protestant community anticipates that the Cheong Wa Dae (the presidential office in South Korea or Blue House) will renew its push for the bill’s passage following the by-elections in April. Indeed, the Cheong Wa Dae’s Office of the Secretary for Economic and Financial Affairs and vice ministers in related ministries are known to have met with pastors and other figures from the community to persuade them of the need for the bill. The possibility that the debate will erupt again after the April by-elections appears high.

Some in the Protestant community warn of a campaign to defeat the GNP and call for President Lee Myung-bak’s resignation over the Islamic bond bill.

At a celebratory address Thursday, David Yonggi Cho, senior pastor of Yoido Full Gospel Church, the largest megachurch in the world, said, “Yesterday, I met with the responsible government official [minister] for one hour at a hotel restaurant and told him, ‘If the government agrees to the Islam fund, we will fight the president to the last. We will fight as hard for his resignation as we worked with Christians to elect him.’”

Cho went on to say, “If the administration allows [the Islam fund], the minister will regret it, and the administration will collapse.”

“If anyone comes out in support of Islam, Christians will put their lives on the line to fight them,” Cho said.

Previously, newly appointed Christian Council of Korea Chairman Gil Ja-yeon met on Feb. 17 with the GNP leadership, including Chairman Ahn Sang-soo, and told them, “We will not hesitate to campaign against [those who vote in favor] if the sukuk bill passes the National Assembly.”

A GNP lawmaker familiar with the situation in the Protestant community said, “The community has continuously communicated its opposition on an unofficial basis to President Lee ever since the bill emerged in 2009.”

“Only now have formal statements begun to emerge,” the lawmaker said.

The government has been pushing the bill since 2009 in order to attract foreign-denominated funds. It passed the taxation subcommittee of the National Assembly’s strategy and finance committee in December 2010 but was not introduced at a plenary session of the standing committee due to lawmaker objections.

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