On the 6th, Minister of Employment and Labor Kim Younghun described the tripartite joint declaration on strengthening the functions of retirement pensions as "a new turning point in improving the retirement pension system."
At the event held at Kensington Hotel Yeouido in Seoul on the same day to announce the joint declaration of the "Tripartite Task Force for Strengthening the Functions of Retirement Pensions," Minister Kim said, "This is the outcome of social dialogue aimed at strengthening the protection of workers' post-retirement income."
Kim Younghun, Minister of Employment and Labor, is holding a briefing on subordinate regulations related to the revised Trade Union Act at the Government Complex Seoul in Jongno-gu, Seoul on the 24th. 2025.11.24 Photo by Jo Yongjun
He went on to stress, "It is highly significant in that labor, management, and government have, for the first time, reached an agreement on key issues that have been discussed for more than 20 years since the introduction of the system."
The joint declaration includes measures such as "making it mandatory for all workplaces to accumulate retirement benefits in external reserves" and "setting the direction for institutional activation of fund-type retirement pensions." Minister Kim explained, "We have confirmed that fund-type retirement pensions should not replace the existing contract-type system, but should be operated in parallel as a new option to expand the choices available to subscribers and workplaces."
In particular, he emphasized the establishment of fiduciary responsibility as a precondition for the fund-type system. Minister Kim said, "Fiduciary responsibility that puts the interests of subscribers first, the prevention of conflicts of interest, transparent governance, internal control, and close management and supervision by the government are not optional but essential."
Regarding the mandatory external accumulation of retirement benefits, he said it is "a mechanism to prevent wage arrears and to protect workers' rights to receive retirement benefits." However, he added, "We will not turn a blind eye to the burdens that micro and small and medium-sized enterprises may face," and explained, "The government will launch a fact-finding survey and prepare support measures to ease these burdens, thereby helping the system take root in workplaces."
Minister Kim also evaluated this agreement as an achievement of social dialogue. He said, "We have once again confirmed that changes that transform history and the times are made possible through dialogue, empathy, and mutual respect among responsible social actors."
Minister Kim stated, "This declaration is not the end. We will continue discussions, through a social dialogue body in which labor, management, and government all participate, on remaining issues such as eliminating blind spots for workers with less than one year of service," adding, "We will swiftly prepare concrete improvement measures so that the agreed matters can be implemented institutionally, and will actively support the related legal amendments so that they can be smoothly discussed and passed in the National Assembly."
Minister Kim said, "Today's joint declaration will serve as a milestone to keep us from losing our way on the long voyage to secure workers' post-retirement income," and added, "If labor, management, and government move forward together based on mutual trust, we will surely be able to achieve our goals."
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