Kwon Young-se, chairperson of the People Power Party's emergency response committee, said on the 10th that the National Pension is expected to run out by 2055 and urged the Democratic Party of Korea to swiftly initiate discussions by establishing a special committee on pensions in the National Assembly.
Chairperson Kwon noted during an emergency response committee meeting held in the National Assembly that "the idea of discussing this at the level of the Health and Welfare Committee (as claimed by the Democratic Party of Korea) is a frivolous thought that cannot resolve the crisis of the National Pension," and emphasized that "we must properly implement pension reform by swiftly establishing a special committee on the National Pension."
He diagnosed, "If there is a business that incurs a deficit of 88.5 billion won a day and 32 trillion won annually, such a business has no choice but to close its doors immediately," adding that "the dire financial situation being presented is precisely our citizens' retirement asset, the National Pension."
He continued, "The National Pension's revenue is continuously decreasing, while expenditure is increasing exponentially due to changes in population structure and the entrenchment of low growth," and added that "as of the end of October last year, the total number of National Pension subscribers decreased by 570,000 compared to 2023, while the number of beneficiaries increased by 410,000 during the same period."
Chairperson Kwon emphasized, "At this rate, the National Pension will be depleted by 2055, and that empty hole will have to be filled by our future." He pointed out that "since 2007, pension reform has not been touched once. Pension reform can no longer be delayed or done in a cursory manner."
He explained, "For a 20-year-old youth to receive a stable pension, the insurance premium rate must be at least 17.9%," adding that "the current insurance premium rate of 9% must be doubled immediately. What has been agreed upon by both parties so far is an increase from 9% to 13%. The portion of the increase (8.9 percentage points) that should be shouldered by the current government is about half, with the rest to be passed to the next government."
Chairperson Kwon stressed that the discussion must encompass both parameter reform and structural reform. Parameter reform aims to readjust the ratio of the insurance premium rate (the amount paid) to the income replacement rate (the amount received) within the pension system. Structural reform involves extending the pension system framework to include the National Pension, basic pension, and retirement pension, effectively changing the entire pension framework.
He emphasized, "Playing with numbers without structural reform is merely peeing in the snow," and asserted that "to genuinely achieve reform, the income replacement rate must be carefully determined, considering the structural interconnections of the entire pension system, including the basic pension, retirement pension, and occupational pension, and discussions about automated adjustment measures for military service and maternity credits must also take place."
He reiterated, "If the Democratic Party of Korea is sincere, let us have a proper discussion in the National Assembly's special committee on pensions."