"Fully Accept the Ruling Party's Proposal"
"Cannot Let It Fail by a 1% Difference"
Proposal to Settle the First Pension Reform
Lee Jae-myung, leader of the Democratic Party of Korea, accepted the ruling party's compromise proposal of a '44% income replacement rate' on the 25th in relation to discussions on National Pension reform.
He proposed conducting the first parametric reform, adjusting the contribution rate and income replacement rate, within the 21st National Assembly term, and discussing the second structural reform plan in the 22nd National Assembly.
At an emergency press briefing held at the National Assembly that day, Lee said, "This is something that must be done, but since there is no time, the Democratic Party will inevitably make all concessions," and added, "We will fully accept the 44% income replacement rate proposed by the ruling party."
He emphasized, "The income replacement rates claimed by the Democratic Party and the People Power Party are 45% and 44%, respectively," and said, "We cannot let the pension reform plan fail over a mere 1 percentage point difference."
Lee urged President Yoon Suk-yeol and the ruling party to accept the Democratic Party's proposal to pass the pension reform bill during the 21st National Assembly.
He stated, "The people remember the president's promise to reform the pension system. The president should immediately accept the Democratic Party's proposal," and urged, "(People Power Party) to promptly engage in concrete legislative consultations without delay."
He continued, "If they avoid this by giving other reasons, the public will judge that there was no intention to reform the pension system from the start," and reiterated, "Let's not delay any further; even if it is this weekend, the ruling and opposition parties should meet, reach an agreement, and conclude the first pension reform in this (21st) National Assembly."
The day before, Lee had indicated a willingness to step back from the Democratic Party's original stance of a '45% income replacement rate,' saying, "The Democratic Party is sufficiently open to making a decision between 45% and 44%."
The income replacement rate refers to the ratio of the pension amount to the subscriber's lifetime average income and, along with the contribution rate, is one of the two main pillars of National Pension reform discussions.
The ruling and opposition parties have agreed to raise the contribution rate from the current 9% to 13%.
He emphasized, "We need to solve the big problem and move forward; should we try to solve all the detailed issues attached to it first?" and added, "The core issue, the contribution rate, has been agreed upon, and the second most important thing is to reach an agreement on the income replacement rate."
He continued, "Starting with subsidiary issues means not wanting to negotiate; inwardly, they don't want to do it but only want to talk," and said, "There are many disagreements within our party and civil society, but we will take full political responsibility for that."
He appealed, "Someone has to bell the cat. We accept the 44% income replacement rate to prevent greater losses," and said, "Isn't it better to move forward even half a step rather than sit down because we can't take a full step?"
Lee also emphasized, "To supplement the shortcomings, we will push for the second pension reform in the 22nd National Assembly," and added, "We will definitely achieve structural reforms to enhance the sustainability of the National Pension."
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