Seminar on Pension Reform with Yeo... "Yoon Government Should Raise National Pension Contribution Rate to 12%"

O Gun-ho, Policy Committee Chair of Naegamandeuneun Bokjigukga
Presentation at Pension Reform Seminar Hosted by Assemblyman Seong Il-jong
Measures to Stabilize National Pension Finances Amid Depletion Concerns
"Continuous Reforms Should Gradually Raise Benefits Each Administration"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Hyun-ji] There has been a claim that the insurance premium rate, currently 9%, should be raised to 12% under the Yoon Seok-yeol administration to stabilize the National Pension Fund.

On the 29th, Oh Geon-ho, Policy Committee Chairman of the Welfare State We Make, stated at a seminar titled “Reform Directions and Tasks of the Korean Pension System,” hosted by Seong Il-jong, Policy Committee Chairman of the People Power Party, at the National Assembly in Yeouido, Seoul, “If the income replacement rate remains at the current 40%, the insurance premium rate, currently 9%, should be about 20% to balance revenues and expenditures, but it is impossible to double it immediately. For now, a phased continuous reform over five years under the current administration is necessary, and raising the rate by 3 percentage points from 9% to 12% can be considered.” He proposed that the 3% increase be shared equally between workplace subscribers and companies, each bearing an additional 1.5%.

Oh emphasized the role of the National Assembly in this regard. He said, “From the subscribers’ perspective, paying more premiums without receiving more benefits causes resistance, so the National Assembly or political circles may feel burdened to propose such measures. However, I hope the political sphere can confidently initiate such discussions.”

At the event, Policy Committee Chairman Seong expressed the ruling party and government’s determination for pension reform. He said, “The party also regards pension issues very seriously,” and added, “The President mentioned that as Korea prepares for the next 100 years, it should not become a burden to future generations.” He also strongly criticized the Moon Jae-in administration’s pension reform, stating, “The previous administration did nothing. Looking ahead 100 years, various reforms, adjustments, and supplements are necessary, but they neglected these areas without even attempting reforms, losing the public’s trust.”

Oh stated, “I hope this level of reform is achieved under the Yoon administration to alleviate the burden on future generations,” and emphasized, “A mid- to long-term reform should continue with subsequent administrations gradually raising the insurance premium rate.”