[2023 Click Political Figures] Pension Reform Vanguard Kim Seongju

National Assembly Pension Reform Special Committee Opposition Party Secretary
"Even the Opposition Party Must Take the Lead in Pension Reform"

Editor's NoteThe year 2023, the Year of the Black Rabbit, has dawned. The political landscape, marked by a ruling-opposition split following last year's regime change, is expected to witness fierce power struggles between the ruling and opposition parties this year as well. We have selected 10 politicians to watch closely as they attempt to solve the complex equations of Yeouido politics.

[Asia Economy Reporter Naju-seok] Warnings about the "pension fund depletion crisis" are loud and frequent. While many emphasize the necessity of pension reform, few pay attention to the fact that the "golden time" for pension reform is running out.

Kim Sung-joo, a member of the Democratic Party of Korea, is leading discussions on pension reform with a sense of urgency, believing that visible progress must be made in the first half of this year considering the political schedule including next year's general election. Nevertheless, he envisions this pension reform not merely as a negotiation between ruling and opposition politicians but as a process to inform the public about the reality of pensions and encourage nationwide participation in the debate.

As the opposition party's secretary of the National Assembly's Special Committee on Pension Reform, Kim is recognized as one of the leading pension experts in the political arena. He played a leading role in the civil servant pension reform, which was regarded as the first social compromise at the National Assembly level, and has served as the chairman of the National Pension Service. Even within his own opposition party, he is known for his sincere dedication to pension reform to the extent that some say, "Now that we are the opposition, I don't know why he is working so hard."

Kim emphasizes that pension reform is "a task that should have been done long ago but was not" and insists that "reform must be pursued through bipartisan cooperation, with public participation and sufficient deliberation among stakeholders." Regarding the argument that "now that the Democratic Party is in opposition, it should raise its voice only when the government pushes for reform," he responds, "As a responsible party aiming for power, it is only natural to correct unreasonable systems. Since the Democratic Party failed to do what was necessary while in power, it is now the party's duty to actively create systems for the people as the opposition." He believes that the Democratic Party should take the lead in this issue more than the government or the ruling party.

Kim Sung-joo, Member of the Democratic Party of Korea./Photo by Yoon Dong-joo doso7@

Kim's core belief is that reforming pensions to provide higher benefits will make people more willing to contribute more. He explains, "When people think of pension reform, they often imagine reforms based on financial theory that increase burdens and cut benefits, but this approach fails to gain public sympathy and support. The goal of reform must be to enhance the level of old-age income security while ensuring fiscal sustainability, which is a firm principle."

As time passes, Kim grows increasingly anxious. He says, "The government plans to submit a reform proposal based on fiscal estimates to the National Assembly in October and requests political consensus, but with the general election approaching, it is difficult for the Assembly to have sufficient discussions and reach political compromise." He warns, "There is a concern that the government's pension reform schedule itself may create a frame where if the opposition does not agree, the opposition will be blamed for the failure of pension reform." If the pension reform discussion proceeds as the government envisions in the second half of the year, a political conflict over pension reform between the ruling and opposition parties may arise.

For this reason, he stresses a speed strategy, saying, "If sufficient consensus is reached on parameter reform (adjusting parameters such as contribution rates and income replacement rates while maintaining the basic structure of the pension system), legislation can be passed in the first half of this year." In this regard, he has repeatedly called for "regular meetings" and demanded in-depth discussions whenever he has the opportunity to speak at the pension reform special committee.

The National Assembly Special Committee on Pension Reform in discussion [Image source=Yonhap News]

Through the pension reform currently under discussion in the National Assembly, Kim is considering ways to create a forum where all citizens can discuss pension issues. He explains, "South Korea is not poor, but the elderly are poor because the pension system has not functioned properly. People have limits in preparing for old age through real estate or financial investments. Ultimately, public pensions are the most reliable method of old-age security, and the pension reform discussion process must convince the public of this." He adds, "If the public agrees, the discussion will naturally flow to whether the current generation can receive benefits, whether the next generation can receive benefits, and how the next generation can secure their benefits." Such public education and consensus-building are essential to successfully push forward proper pension reform.