Ruling and Opposition Parties Exclude Automatic Adjustment Mechanism in Pension Reform... Begin Discussions with 'Parameter Reform'

Consultative Meeting with Woo Won-shik and Floor Leaders of Both Parties
Priority Discussion on Parameter Reform,
Automatic Adjustment Mechanism to Be Discussed Later

On the 6th, the ruling and opposition parties announced at the National Policy Council, excluding the government, that "they have agreed to discuss pension parameter reform excluding the introduction of an automatic adjustment mechanism at the National Assembly's Special Committee on Pensions." They decided to continue discussions on the Semiconductor Special Act at a later date. They plan to meet again on the 10th to further discuss related issues.

Jin Seong-jun, the Policy Committee Chair of the Democratic Party of Korea, said immediately after the meeting, "We agreed not to discuss the automatic adjustment mechanism during the parameter reform process and to discuss it together with structural reform once the Pension Special Committee is formed," adding, "We reached a consensus that parameter reform should be limited to the contribution rate and income replacement rate."

Kim Sang-hoon, the Policy Committee Chair of the People Power Party, also explained, "Since parameter reform is urgent, we proposed this plan to the Democratic Party," and "We proposed a contribution rate of 13% and an income replacement rate of 43%, to which the Democratic Party responded that they would 'consider it.'"

On the 6th, participants joined hands at the ruling and opposition parties' national policy consultation meeting held at the National Assembly. From the left: Park Hyung-soo, Chief Deputy Floor Leader of the People Power Party; Kim Sang-hoon, Chairman of the Policy Committee; Kwon Seong-dong, Floor Leader; Woo Won-shik, Speaker of the National Assembly; Park Chan-dae, Floor Leader of the Democratic Party of Korea; Jin Seong-jun, Chairman of the Policy Committee; Park Seong-jun, Chief Deputy Floor Leader. March 6, 2025. Photo by Kim Hyun-min

However, the ruling and opposition parties failed to reach an agreement on the issue of the exemption clause for 52-hour workweek in the research and development (R&D) sector under the Semiconductor Special Act.

Policy Chair Jin stated, "We decided to continue discussions on the Semiconductor Special Act. The People Power Party insists that the exemption for working hours should be included in the legal text," adding, "The Democratic Party maintained the position that it is unnecessary to include it in the legal text since the existing working hours exemption system can address this issue."

They plan to meet again on the 10th to discuss related issues. Chair Kim said, "Since Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, was absent today, we will consult with the government side and prepare a forum to enable discussions."