Lee Jae-myung Proposes Final Grand Compromise on Pension Reform... People Power Party Opposes, Calling Democratic Party's Plan a False Claim as Ruling Party's Proposal

Lee Jae-myung Expresses Willingness for Pension Reform Summit
"Must Be Addressed at the Plenary Session on the 28th"
Ruling Party: "The 13%-45% Mentioned by Lee Jae-myung Is the Democratic Party's Proposal, Not Presented by the Government"

Lee Jae-myung, leader of the Democratic Party of Korea, proposed a final negotiation on pension reform on the 23rd. He suggested reaching a final agreement on a pension reform plan that raises the insurance premium rate before the end of the 21st National Assembly while also increasing the income replacement rate. However, the People Power Party (PPP) opposed this, claiming that the detailed contents of the pension reform plan proposed by Lee were actually the Democratic Party's plan, which had disagreements, and that it was not the government's proposal.

On the same day, Lee stated through social media (SNS), "The term of the 21st National Assembly is less than a week away. However, the issue of the national pension reform plan, the biggest challenge in our society, remains uncertain whether it will be processed." He added, "I request the president, government, and ruling party to take responsible attitudes so that the remaining time of the 21st National Assembly can resolve this long-standing task of our society, the national pension reform plan." Regarding this, he said, "The Democratic Party has requested the convening of the Pension Special Committee to process the reform plan," and "If the government and ruling party make a decision, the pension reform plan can be processed at the plenary session on the 28th. I also express willingness to hold a summit meeting with the president on this issue."

Regarding the detailed pension reform plan, he explained, "The Democratic Party has made a decision to lower the income replacement rate from the initially proposed 50% to 45% for the prompt processing of the reform plan," and "The plan with a 13% insurance premium rate and 45% income replacement rate was also proposed by the Yoon Seok-yeol government."

However, a dispute over the truthfulness arose regarding Lee’s explanation that the 45% income replacement rate was the Yoon Seok-yeol government’s plan. Bae Jun-young, senior deputy floor leader of the PPP, said in a statement that "The Yoon Seok-yeol government never proposed a 13% insurance premium rate and 45% income replacement rate," and "This plan is the Democratic Party’s proposal. It is hard to understand that the Democratic Party leader accepts the Democratic Party’s own claim."

[Image source=Yonhap News]

Joo Ho-young, chairman of the Pension Special Committee from the PPP, and Yoo Kyung-jun, ruling party secretary of the Pension Special Committee and PPP lawmaker, also pointed out that the facts were incorrect. They said that the 45% rate was never proposed. Yoo said, "How can a plan unknown to the ruling party secretary become the ruling party’s plan?" and "If you claim it is our government’s plan, please provide evidence." He added, "It is outrageous that the Democratic Party’s plan is disguised as the Yoon Seok-yeol government’s plan," and "We will no longer be deceived by the Democratic Party’s intention to pass their plan through lies and wordplay."

Kim Sung-joo, opposition party secretary of the Pension Special Committee and Democratic Party lawmaker, said at a press briefing, "I will not disclose unofficial proposals between the ruling and opposition parties and the government," but added, "The Public Deliberation Committee adopted a 13% insurance premium rate and 50% income replacement rate, but considering the financial burden, the Democratic Party proposed a 15% insurance premium rate and 50% income replacement rate. In response to the difficulty due to corporate burden, a mutually reasonable agreement was reached on a 13% insurance premium rate and an income replacement rate of 45%, which is between 40% and 50%." Kim said, "The 13% insurance premium rate and 45% income replacement rate plan was part of the common proposals and was one of the alternatives seriously considered by the government." However, Kim added, "In fact, a 1% difference has no meaning. It has no financial or burden significance; it is just a matter of pride. Nevertheless, if we decide to proceed for the greater good, I will follow Leader Lee’s thoughts."

Meanwhile, the ruling party continues to dispute the proposal of a 44% income replacement rate. Yoo said, "I publicly proposed a revised pension reform plan with a 13% insurance premium rate and a 44% income replacement rate," and "Last night, Secretary Kim Sung-joo confirmed this figure." He criticized the Democratic Party’s claim that a 1-2% difference in the income replacement rate should not cause failure, saying, "What nonsense is that? I urge you to accept that 1-2% difference unconditionally." He called for the Democratic Party to accept a 13% insurance premium rate and 44% income replacement rate.

In addition, Yoo pointed out that aside from the insurance premium rate and income replacement rate, the opposition party only makes vague claims. He said, "Regarding complex subsidiary agendas or structural reform processing methods beyond the main reform plan, they only list what they want and give ambiguous answers that if it doesn’t work, they might only do the main reform." In this regard, Kim said at a press briefing, "We proposed expanding the credit system, and if that is not possible, we will try to handle at least a one-point reform."