Lee Jae-myung Proposes Summit Meeting Again... Is Pension Reform Still Possible?

"Income Replacement Rate Open Between 44-45%"
Democratic Party "Now Yongsan Must Respond"
People Power Party "Bad Politics Using Special Prosecutor Handling"

Lee Jae-myung, leader of the Democratic Party of Korea, once again proposed a summit meeting with President Yoon Seok-yeol or a negotiation between the president and the leaders of the ruling and opposition parties regarding pension reform. The Democratic Party is reportedly considering negotiations that include slight adjustments to the income replacement rate and insurance premiums, contingent on the president's response.

At the Supreme Council meeting held at the National Assembly on the 24th, Lee said, "It is not desirable to continue neglecting this issue or to pass it on to the 22nd National Assembly over a difference of 1% or less in the income replacement rate claimed by both parties," adding, "If there is a will to reform the pension system, the president and the leaders of the ruling and opposition parties, or the president and the Democratic Party leader, should meet and reach a settlement by any means within a 1 percentage point range."

He continued, "The Democratic Party is once again emphasizing that it is fully open to making a decision somewhere between 44% and 45% of the income replacement rate." Lee stated, "The reform plan was derived by the Public Deliberation Committee for the first time in 17 years, and it makes no sense to start over using the 1 percentage point difference as an excuse," warning, "In reality, this could lead to public criticism that there is no intention to reform."

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 24th. Photo by Kim Hyun-min kimhyun81@

On the other hand, the People Power Party rejected Lee’s proposal for a summit meeting on pension reform, accusing it of having political motives. Chu Kyung-ho, floor leader of the People Power Party, said at a floor strategy meeting, "They are pushing ahead with a plenary session without bipartisan agreement and are using pension reform strategically for the special prosecutor law concerning Chae Sang-byeong, engaging in very bad politics and political trickery," adding, "The People Power Party regards sustainable pension reform as a core task that must be handled first in the 22nd National Assembly with public consensus for our future."

In particular, the People Power Party countered that the 13% insurance premium rate and 45% income replacement rate, which Lee referred to as the government’s proposal, are actually "the Democratic Party’s plan," accusing them of "even lying." Meanwhile, the Democratic Party rebutted that the government proposed the plan unofficially through informal working channels after the public deliberation survey. Jin Sung-jun, chairman of the Democratic Party’s Policy Committee, said, "The Ministry of Health and Welfare has unofficially proposed it."

Practical negotiations related to pension reform have effectively stalled as the decision-making has shifted to the realm of the president and the Democratic Party leadership. A member of the Democratic Party’s Pension Special Committee said, "Now, a response from Yongsan is needed."

If the presidential office changes its stance positively and negotiations between the ruling and opposition parties take place, the focus will likely be on how to bridge the 1 percentage point gap in the income replacement rate. However, the Democratic Party is also considering a negotiation plan that includes a slight increase in the insurance premium rate, assuming the president participates in the dialogue. A Democratic Party official said, "Since the 45% income replacement rate is a strong demand from the public, we can maintain that while considering an insurance premium rate of 13% plus alpha."