The ruling and opposition parties reached a breakthrough deal Monday in negotiations over the government's budget for next year after hammering out a compromise on a number of key sticking points, such as how many public service jobs should be created.

The floor leaders of the ruling Democratic Party, the main opposition Liberty Korea Party and People's Party announced the agreement, two days after the parties missed the legal deadline for budget's passage over key contentious issues in the 429 trillion won ($395 billion) budget.

The parties plan to rewrite the original budget to reflect the deal before putting it to a vote.

Major bones of contention have been a proposal to use 534.9 billion won to support Moon's push to create 174,000 new public service jobs by 2022 and the 3 trillion won "job stability" plan to bankroll next year's minimum wage increase.

Opposition parties sought to reduce the number of public sector jobs to be created, arguing that such a sharp increase would put too much burden on future generations. They also demanded the job stability plan be applied for only one year.

Under Monday's deal, the parties agreed to set the number of new public service jobs at 9,475, down from the 12,000 initially proposed by the ruling party and the Moon Jae-in administration as part of the government's key job creation plan.

The state subsidy for smaller businesses against the burden of the planned minimum wage hike will be set at 2.97 trillion won, they said. They also agreed to raise the corporate tax rate for businesses with taxable profit of more than 300 billion won to 25 percent.(Yonhap)

(From Left)Chung Woo-taik of the Liberty Korea Party, Woo Won-shik of the Democratic Party, and Kim Dong-cheol of the People`s Party, announced an agreement late Monday over the government`s budget for next year.(Yonhap)