Lee Jae-myung and Kwon Young-se "Pension Reform, Starting with Parameter Reform"... Ruling and Opposition Parties Have Tentatively Set the Direction

Pension Reform to Prioritize Parametric Changes Before Structural Overhaul
Disagreements Remain Over Which Committee Should Lead Parametric Reform

There is a growing likelihood that a 국민연금 (National Pension) parametric reform plan centered on increasing the insurance premium rate will be produced in the February National Assembly session. The ruling and opposition parties, which had differing views on the order of structural reform and parametric reform, have reached a consensus to prioritize parametric reform first. However, it remains uncertain whether the parametric reform will be conducted in the National Assembly's Health and Welfare Committee, where the opposition holds the majority, or in the National Assembly's Pension Reform Special Committee, which is operated with equal representation from both parties.

On the 6th, Kwon Young-se, Emergency Response Committee Chairman of the People Power Party, expressed his stance on pension reform at a press briefing held in the National Assembly, stating that parametric reform should be discussed first. Chairman Kwon said, "There is bipartisan agreement on increasing the insurance premium rate, but opinions differ on the income replacement rate," adding, "We need to quickly form the Pension Reform Special Committee, first finalize the insurance premium rate at 14%, and then promptly decide on the income replacement rate before fully engaging in structural reform."

Kwon Young-se, Emergency Response Committee Chairman of the People Power Party, is holding a New Year's press conference at the National Assembly on the 6th. 2025.2.6. Photo by Kim Hyun-min

Previously, in the 21st National Assembly, there was considerable agreement between the ruling and opposition parties regarding parametric reform related to pension reform, but the agreement fell through amid calls for structural reform to be conducted simultaneously.

Earlier, the People Power Party and the government had slightly shifted their positions while discussing pension reform measures. A People Power Party official explained, "It is better to conduct the special committee because if we do parametric reform first and structural reform later, structural reform might be needed again," adding, "In any case, the idea is to conduct parametric reform in the special committee."

People Power Party lawmaker Ahn Cheol-soo, who has advocated for pension reform, also agreed via social media (SNS), stating, "I agree with the argument that parametric reform should be urgently processed," and added, "One approach is to first agree on parametric reform and then continue with structural reform in the special committee." This marks a change in approach from the previous stance that structural reform should be conducted simultaneously.

The Democratic Party of Korea welcomes this change in attitude for now. On the 7th, Lee Jae-myung, leader of the Democratic Party, said at the Supreme Council meeting, "The People Power Party has announced that they will prioritize parametric reform regarding pension reform," adding, "Including the 21st National Assembly, the People Power Party has been disappointing, but this time, they should really do it."

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 5th. Photo by Kim Hyun-min

However, the opposition insists that "there is no need to waste time" and advocates for pushing forward with parametric reform first. Park Joo-min, Chair of the National Assembly Health and Welfare Committee (affiliated with the Democratic Party), stated the day before, "We will process the amendment to the 국민연금법 (National Pension Act) for parametric reform within February." In a statement, he said, "We plan to hold a subcommittee meeting of the Welfare Committee in the third week of February to review the bill and then discuss the schedule to process it in the plenary session," adding, "If the People Power Party tries to delay the bill review, we intend to review and process it by other means." He emphasized, "What can be done now should be done immediately," and added, "Structural reform is not a tool to obstruct parametric reform. Pension reform cannot be delayed any longer." Jin Sung-jun, Policy Chief of the Democratic Party, also said, "Parametric reform legislation should be quickly decided and concluded by the Welfare Committee, which is responsible for this issue," adding, "The larger and more complex structural reform issue can be discussed in the Pension Reform Special Committee."