The Democratic Party of Korea's special committee on pension reform held a policy forum at the National Assembly on the 30th and reached a consensus that the relationship between the basic pension and the National Pension should be restructured. With projections that fiscal spending on the basic pension will expand rapidly, participants stressed that a revamp is inevitable to consider the system's sustainability and intergenerational fairness.
The Democratic Party's pension reform special committee held a second consecutive policy forum at the National Assembly that day under the theme, "How to restructure the relationship between the National Pension and the basic pension."
Special committee Chairperson Nam In-soon said, "In the National Assembly 4th, the pension reform that was agreed upon with difficulty for the first time in 18 years has slightly delayed the depletion point of the National Pension, but it just bought some time," adding, "By 2050, the basic pension is expected to increase more than sixfold from the current level. It is time to review what role the basic pension should play in developing pensions into a multi-tiered system."
According to the government's budget plan, in 2026 the number of basic pension recipients will reach 7.79 million, up 430,000, and the monthly pension amount will also be increased by 6,850 won to 349,360 won. Compared to 2008, when the system was introduced, basic pension finances have increased by about tenfold, and fiscal spending in 2050 is expected to rise by about sixfold from the current level.
Rep. Kim Nam-hee, who serves as secretary of the special committee, also said, "With the retirement of the baby boomer generation, the trend of elderly poverty could change further," adding, "It is time to begin a social discussion on whether the (current) basic pension, which pays the same amount to the bottom 70% by income, is an effective structure for preventing poverty and strengthening income security."
Rep. Oh Ki-hyeong, the ruling party secretary of the National Assembly's special committee on pensions, raised the issue of funding. "The basic pension budget is 26 trillion won this year and is said to increase to 150 trillion won in the long term," he said, emphasizing, "We must not hide but disclose to the public whether the national finances can bear it and find realistic measures regarding the current pension structural reform."
Rep. Kim Yun of the National Assembly Health and Welfare Committee called for a political decision. Kim said, "The rerouting of the relationship between the National Pension and the basic pension will likely be extremely difficult politically," warning, "If we miss the timing, as the share of elderly people receiving the National Pension increases, the basic pension expenditure will continue to rise." She added, "We should raise the benefit amount of the basic pension to ensure real old-age income security, while gradually reducing the number of recipients and setting the relationship with the National Pension in the process," and "In the course of a soft landing, additional fiscal input and public persuasion will be necessary."
Former lawmaker Kim Sung-ju served as moderator at the forum, which was joined by experts from across sectors, including the National Pension Research Institute, the Korea Development Institute for Self - Sufficiency and Welfare, and the Ministry of Health and Welfare. Based on the discussion results, the party's pension special committee plans to gather public opinion and discuss pension structural reform measures at the National Assembly's pension special committee.