Candidate Jo Gyu-hong: "Pension Reform Cannot Be Discussed Without Guaranteeing Payments"

Health and Welfare Minister nominee Cho Kyu-hong is wearing a mask properly while attending the confirmation hearing held at the National Assembly on the 27th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Young-won] Cho Kyu-hong, nominee for Minister of Health and Welfare, expressed the view that pension reform must be premised on payment guarantees.

Cho responded this way on the afternoon of the 27th during the confirmation hearing at the National Assembly's Health and Welfare Committee, in response to a question from Seo Jeong-sook, a member of the People Power Party.

Rep. Seo said, "According to a survey conducted by Korea Research, 57% of people in their 20s, 64% in their 30s, and 52% in their 40s responded that they will not be able to receive pensions in the future, showing that the younger generation is more anxious about not receiving pensions. You mentioned that even if the National Pension Fund is depleted, you are considering legal grounds and formalizing payment guarantees for the government to pay pensions to subscribers. Do you have any plans regarding this?"

In response, Cho emphasized, "We cannot discuss pension reform without premising payment guarantees." He added, "The government has always considered payment guarantees, and I believe there is a provision with that intent in the current law. However, if more precise wording is needed during the pension reform discussions, we will actively consult on it."

The legal provision Cho referred to is interpreted as Article 3-2 of the National Pension Act. This article stipulates that "The state shall establish and implement necessary policies to ensure that pension benefits are paid stably and continuously."

Regarding a question from Kang Eun-mi of the Justice Party on whether the pension income replacement rate should be increased, Cho replied, "Sufficient discussion is necessary." He said, "Some argue that the replacement rate should be raised, while others believe that maintaining the replacement rate while using basic pensions or class structures to secure retirement income is important. We will strive to ensure that the National Assembly's Special Committee on Public Pension Reform thoroughly discusses this and finds reasonable alternatives."