Direct Explanation of Pension, Medical, Education, and Labor Reform Plans
Focus on Pension Reform Enhancing Intergenerational Equity
Emphasis on Addressing Low Birthrate... Likely to Request Cooperation from the National Assembly
President Yoon Suk-yeol is expected to hold a national briefing as early as this week to directly explain the achievements of major national tasks and future plans. The core of the plan is the '4+1 Reform' concept, which includes the four major reforms in pensions, healthcare, education, and labor, along with measures to address low birth rates. In particular, President Yoon is expected to mention pension reform plans focusing on intergenerational equity and sustainability.
According to the Presidential Office on the 25th, President Yoon will soon hold a national briefing to explain the overall performance of government administration and upcoming challenges. Although the date has not been finalized, it is expected to take place after the National Assembly's Steering Committee meeting scheduled for the 27th. During this briefing, President Yoon is also likely to respond directly to questions from the media.
President Yoon plans to announce pension reform measures during the briefing. Currently, the National Assembly is focusing on parametric reforms that adjust contribution rates and income replacement rates to delay the depletion of the National Pension Fund, but the government plan to be disclosed by President Yoon is said to place greater emphasis on fundamentally reforming the National Pension system itself.
Basically, the plan aims to strengthen intergenerational equity by having younger generations pay less in contributions while those who will soon receive pensions pay more. For example, if the contribution rate for the middle-aged group is increased by 1 percentage point annually and the rate for the younger generation is increased by 0.5 percentage points annually, the burden on the younger generation can be somewhat reduced during the period it takes to reach the targeted contribution rate.
The pension benefits for military service members and women giving birth are also likely to be included. Currently, the 'childbirth credit' is recognized starting from the birth of the second child, but the plan is to apply it from the birth of the first child. Additionally, the period recognized for pension enrollment during military service, which is currently limited to six months, is expected to be extended to cover the entire military service period.
Furthermore, if the fund is at risk of depletion, mechanisms to automatically adjust contribution amounts and benefit payments will be established to ensure sustainability.
However, in this national briefing, President Yoon is expected to present only the broad direction of pension reform, with detailed government proposals to be announced by the Ministry of Health and Welfare early next month.
President Yoon is also expected to address the fields of healthcare, education, labor, and low birth rates. Regarding education, the government’s key initiatives such as 'Neulbom School' and 'Yubotonghap' (integration of kindergarten and daycare) are expected to be emphasized. AI textbooks and the dismantling of private education cartels will also be major topics.
In the labor sector, the focus is likely to be on protecting vulnerable workers such as unorganized laborers and non-regular workers, which President Yoon has consistently emphasized. At a public discussion on livelihood issues last May, President Yoon instructed the enactment of a law to protect vulnerable workers and also urged preparations to introduce a labor court law within his term.
In healthcare, the core plan is to shift tertiary general hospitals, which have relied heavily on the sacrifices of resident doctors, to a specialist-centered system. The structure will be changed to allow focus on treating critically ill patients, and measures to strengthen support for essential medical personnel and resolve the shortage of emergency medical institutions are also expected to be mentioned.
President Yoon’s remarks on addressing low birth rates, an area of great interest to him, will also draw attention. He has previously announced plans to establish a Population Strategy Planning Department to serve as a control tower for low birth rate issues, and recently created a Low Birth Rate Senior Secretary’s Office to handle this matter. Since launching the Population Strategy Planning Department requires amendments to the Government Organization Act by the National Assembly, he is expected to seek cooperation from opposition parties.
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