[People人] A Budget Policy Expert with Welfare Sensibility: "Creating a Pension for All Citizens"

Filling the 8-Month Long Leadership Void
Budget Expert with Extensive Experience in Key Ministry of Economy and Finance Positions
Interest in Leading the Change Desired by the People

Kim Yong-jin, Director of the National Pension Service

[Asia Economy Reporter Seo So-jeong] "We will create a 'pension for all citizens,' a true 'National Pension' that can give hope that every citizen can enjoy a happy old age."

The National Pension, which forms the foundation of the social safety net, carries the destiny of existing as a sustainable system. This is why Kim Yong-jin, the Chairman of the National Pension Service, emphasized a "pension for all citizens" as his first statement upon taking office. It signifies his commitment to realizing the social and economic roles and values of the National Pension, which stands as the last bastion and frontline of the social security system. Two months after breaking an eight-month leadership vacancy and taking office as the 17th chairman, the atmosphere within the organization has noticeably changed since his appointment. Having served in key positions at the Ministry of Strategy and Finance, including as Vice Minister, and being well-versed in budgeting and finance, his leadership has brought a new dynamic.

"What I am most confident about is breaking the 'basic framework.' Based on my experience of changing national, social, and government systems, I will strive for a sustainable National Pension system." With over 30 years of experience in central government agencies leading systemic changes, his determination is accelerating internal innovation at the National Pension Service, which manages a fund of about 700 trillion won.

From Rural Origins 'Ethics Teacher' to Vice Minister of Ministry of Strategy and Finance

Within government circles, Chairman Kim is regarded as someone who "understands social welfare better than officials from the Ministry of Health and Welfare." This is because he broadened his understanding of the National Pension while serving as Director of the Social Fund Division at the Ministry of Strategy and Finance and has held various positions such as Director of Welfare Labor Budget Division and Social Budget Review Officer. He is both a budget policy expert and deeply knowledgeable about welfare.

Unexpectedly, Kim's first job was as an 'ethics teacher.' Majoring in education at Sungkyunkwan University, he passed the joint recruitment exam for high school teachers in Seoul in 1985 and was assigned to Dongseong High School in Seoul. To properly teach the philosophical theories found in ethics textbooks, he avidly read 100 classical philosophy books by Plato, Aristotle, Kant, and others. Although teaching was rewarding, he yearned for a different path. While preparing for the civil service exam, he passed the 30th Administrative Examination in 1986 and entered public service. After working at the Ministry of Education, he was scouted to the Ministry of Planning and Budget (now the Ministry of Strategy and Finance), where he served as Director of Fiscal Standards, Director of External Economic Affairs, Director of Public Innovation Planning, and spokesperson. In 2017, he was appointed as the 2nd Vice Minister, earning recognition as a budget expert. Before his appointment as Vice Minister, he also served as President of Korea East-West Power for about a year.

A Compassionate and Responsible Boss... Yet Harsh on Himself

Ministry of Strategy and Finance officials remember Chairman Kim as a 'compassionate boss.' A famous anecdote is when he opposed opposition lawmakers' demands to cut the entire budget for the Ministry of Gender Equality and Family's 'Single-Parent Facility Childcare Service Support Project' during the 2018 National Assembly Budget and Accounts Special Committee subcommittee. He tearfully explained, "When our staff visited single-mother facilities, a common phenomenon was that children in single-parent facilities eventually ended up in orphanages," moving those who witnessed it to tears. This moment revealed Kim's genuine concern for child welfare.

As spokesperson for the Ministry of Strategy and Finance, he was popular with reporters due to his unique affability. When the National Institute of the Korean Language ranked the Ministry last in evaluating government press releases by agency, he initiated change by organizing external lectures. Known for his strong billiards skills (scoring 500) and heavy drinking, he was regarded as someone who 'knows how to have fun.' Yet, he is extremely harsh on himself. In January 2008, when dispatched as a working member of the Presidential Transition Committee's National Competitiveness Enhancement Special Committee under President-elect Lee Myung-bak, he only visited his critically ill father’s hospital room after completing work related to government organization restructuring.

Will Achieve Pension Reform Desired by the People

Although he possesses both expertise and humanity, the National Pension currently faces difficult challenges. The reform of the National Pension, a campaign pledge of President Moon Jae-in and urgent due to concerns over fund depletion, is not easy to persuade the public about. To secure both old-age income security and financial stability, either the insurance premiums paid by citizens must be raised or benefits reduced, which faces strong social resistance. Chairman Kim said, "Public trust in the National Pension is still unsatisfactory," adding, "We will accurately provide the information that citizens need to know and listen to their voices to achieve the pension reform that the people desire."

Managing risks amid the volatility caused by the COVID-19 pandemic is also a challenge. Chairman Kim explained, "The current fund reserve of over 700 trillion won is expected to reach 1,000 trillion won by 2024, creating a golden time to operate the fund without liquidity burdens for the next decade." He added, "We will increase the proportion of alternative and overseas investments and diversify investment targets, regions, and methods to improve returns."

This content was produced with the assistance of AI translation services.