[2nd Anniversary of Yoon's Inauguration] ④ Labor, Pension, and Education Reforms Still Far Off... Must Overcome Legislative Conflicts First

Despite Declaration to Break the 'Education Cartel',
Perceived Insufficiency in Reducing Private Education Expenses
Pension Reform Fails Final Agreement
Labor and Medical Sectors Need Direction Change
Active Cooperation with Opposition Party Required

President Yoon Seok-yeol, marking his second anniversary in office on the 10th, pushed forward reforms in the three major areas of labor, pensions, and education, along with medical reform including the expansion of medical school quotas. However, he faced limitations due to the opposition-dominated National Assembly and resistance from the medical community.

In May last year, entering his second year in office, President Yoon labeled the forces resisting reform as a "cartel." In June of the same year, he declared a crackdown on the "private education cartel," targeting the cartel between the private education industry and education authorities. He sought to reduce private education by eliminating "killer questions" (extremely difficult problems) from the College Scholastic Ability Test, but private education expenses spent by elementary, middle, and high school students last year totaled 27.1 trillion won. This marked the highest level for two consecutive years under the Yoon administration, indicating that the reforms were insufficient to produce tangible effects. Currently, the most emphasized part of President Yoon's education reform is the establishment of the "Neulbom School," which integrates after-school programs and childcare for elementary students.

The pension reform, which the government has long regarded as a key reform task, has also been repeatedly postponed without producing results. The National Assembly formed a Special Committee on Pension Reform and has been negotiating for the past two years, but recently the People Power Party proposed a plan with a "13% contribution rate and 43% income replacement rate," while the Democratic Party of Korea proposed a "13% contribution rate and 45% income replacement rate," failing to reach a final agreement. Furthermore, President Yoon stated at a press conference the day before that "rather than rushing, it should be handed over to the 22nd National Assembly for more thorough discussion," effectively ending the debate. Given the extreme confrontation between the ruling and opposition parties and the upcoming local elections in two years, there is a strong analysis that pension reform will be pushed to the back burner.

President Yoon Suk-yeol is answering questions from the press at the 'Yoon Suk-yeol Government 2nd Year National Report and Press Conference' held on the morning of the 9th at the briefing room of the Yongsan Presidential Office building in Seoul.
[Image source=Yonhap News]

Regarding labor reform, a core national agenda pursued by the government, voices are emerging that it will be difficult to achieve within the term due to the crushing defeat in the April 10 general election. Since President Yoon's inauguration, the introduction of a labor union accounting disclosure system to increase transparency has been recognized as an achievement, but there has been no progress on other key issues such as working hours reform, resolving the dual structure of the labor market, and introducing performance-based pay.

Oh Gye-taek, senior research fellow at the Korea Labor Institute, explained, "It is true that labor reform is needed, but the government’s 'hard' approach has caused difficulties in pushing it forward. Japan, facing similar labor reform tasks, approached it more 'softly' as 'improving work styles.' Our government also needs to internally consider a change in direction."

Medical reform is also a major issue for the Yoon administration. The medical service gap caused by the collective resignation of resident doctors has continued for three months without a solution. Medical school professors opposed to the government's forced expansion of medical school quotas went on a nationwide one-day strike, making it urgent to find a breakthrough.

Lee Pil-sang, special professor of economics at Seoul National University, said, "Due to the characteristics of the single-term presidential system, the third year is the most critical period. This year is effectively the last chance to overcome the crisis." He added, "Although there have been attempts at regulatory, tax, and labor reforms to revive the economy, no clear progress has been made, so a turning point must be created through active cooperation with the opposition party."