Democrats: "Presidential Office Rejects Summit on National Pension Reform" (Comprehensive)

"Proposed to Conclude in the 21st Term... Truly Regrettable"

The Democratic Party of Korea announced that Representative Lee Jae-myung proposed a summit meeting to the Presidential Office on the 24th regarding pension reform, but it was effectively rejected.

On the same day, Cheon Jun-ho, Chief Secretary to the Democratic Party leader, said at a briefing on the summit meeting at the National Assembly in the afternoon, "I contacted Hong Cheol-ho, Senior Secretary for Political Affairs, but received a response that 'it is not appropriate for the President to engage in mixed talks with both ruling and opposition parties before the National Assembly reaches a conclusion first.'"

Cheon added, "The National Assembly's Special Committee on Pension Reform has undergone long discussions and public deliberations, and although we proposed to finalize it in the 21st National Assembly, it was effectively rejected, which is very regrettable." According to Chief Secretary Cheon, Hong Cheol-ho, Senior Secretary for Political Affairs at the Presidential Office, who was contacted for practical consultations that day, said, "Once the ruling and opposition parties finish their discussions, the government will gather opinions from ministries, listen to experts, and then decide its position."

When asked whether they would propose a summit meeting again at the opening of the 22nd National Assembly, he emphasized, "The 21st National Assembly created a special committee on pension reform to resolve this issue and has had many discussions. Although only a few days remain, I believe the ruling and opposition parties should put their heads together and conclude the matter through in-depth discussions."

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@

He continued, "In the 22nd National Assembly, a new special committee will need to discuss and go through public deliberation, and by then it will be toward the end of the administration, so will the pension reform issue be resolved?" He questioned, "If several years pass, the pension problem and structural issues will accumulate, so who will bear the damage?"

Earlier, the National Assembly's Special Committee on Pension Reform conducted negotiations to adjust the National Pension insurance premiums and benefits but ultimately failed to narrow differences and ended its activities this month. The People Power Party proposed a pension reform plan with an insurance premium rate of 13% and an income replacement rate of 44%, while the Democratic Party proposed a final revised plan with an insurance premium rate of 13% and an income replacement rate of 45%.

At the Supreme Council meeting that morning, Representative Lee emphasized, "If there is a willingness to reform the pension system, the President and the leaders of the ruling and opposition parties should meet within a 1% range, or the President and the Democratic Party leader should meet, and any method should be mobilized to reach an agreement." He added, "When the government unofficially proposed 45%, the Democratic Party was advocating for 50%. The Democratic Party is currently proposing 45%, but it is undesirable to continue neglecting a critical issue over a 1% difference or to pass it on to the 22nd National Assembly."

However, the People Power Party argues that the 1 percentage point difference in the income replacement rate is expected to result in a cumulative deficit of around 1,000 trillion won by 2093, 70 years later.