Jinseongjun "Ruling Party Claiming Youth Burden from Pension Reform Must Stop False Agitation"

Jin Seong-jun, the Policy Committee Chair of the Democratic Party of Korea, on the 22nd, urged the ruling party factions to "stop false agitation" regarding claims that the recently agreed national pension reform by the ruling and opposition parties shifts the burden onto the younger generation.

Through his Facebook on the same day, Chair Jin stated, "Some within the People Power Party and the Reform New Party criticize this national pension reform for increasing the burden on the youth," adding, "Upon further reflection, it is clear that this is a politically motivated claim that does not make sense."

Jin Seong-jun, Policy Committee Chairman of the Democratic Party of Korea (left). Photo by Yonhap News

On the 20th, the National Pension Act amendment, which passed the National Assembly plenary session, includes raising the contribution rate from the current 9% to 13% over eight years starting next year by increasing 0.5 percentage points annually, and raising the income replacement rate from the current 40% to 43% starting next year.

Chair Jin pointed out, "Would lowering the income replacement rate further to reduce pension amounts really lessen the burden on the youth?" He added, "If the pensions for the elderly decrease, their livelihood and living expenses must be supported by other means. If the state supports this through the budget, the tax burden on the youth increases accordingly, and if individuals have to take responsibility for their parents' livelihood and living expenses, their expenditure burden also rises."

He continued, "Reducing pension amounts also means that the pension amounts for the youth who will receive pensions in the future will decrease. The youth will also suffer the disadvantage of pension cuts."

Chair Jin said, "If the People Power Party truly cared about the younger generation, why did they oppose the Democratic Party's proposal to extend the military service credit to cover the entire actual service period?" He added, "The Democratic Party will re-pursue the expansion of military service credits as soon as the pension special committee is formed." He also urged, "I hope they stop the false agitation that ignores the essence and purpose of the national pension system and makes illogical claims."