[2020 National Audit] Chairman Kim Yong-jin "Please Discuss National Pension Reform in the National Assembly" (Summary)

"National Pension Reserve Fund to be Depleted by 2057... Parliamentary Discussion Panel Needed"

Kim Yong-jin, Chairman of the National Pension Service, attended the National Assembly's Health and Welfare Committee meeting on the 14th for the National Pension Service audit and is responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Seo So-jeong] Kim Yong-jin, Chairman of the National Pension Service (NPS), appealed to the National Assembly to actively discuss the reform of the National Pension regardless of party lines.

On the 14th, at the National Assembly Health and Welfare Committee's audit of the National Pension Service, Chairman Kim stated, "I believe both ruling and opposition parties agree on the necessity of reforming the National Pension," adding, "If the National Assembly discusses and provides direction, the National Pension will do what it can."

On the same day, Choi Jong-yoon, a member of the Democratic Party of Korea, pointed out, "A social body agreed upon by the ruling party, opposition, and government should be established to fundamentally resolve issues related to the National Pension."

Kim Sung-joo, also from the Democratic Party of Korea, emphasized, "If the reform of the National Pension is delayed by even five years, pension payments may become impossible for the next 100 years," and added, "Since the golden time for pension reform is running out, a parliamentary discussion body for pension reform should be formed immediately."

The results of the 4th financial recalculation in 2018 predicted that the National Pension reserve fund would be depleted by 2057.

According to an analysis applying the latest future population projections by the National Assembly Budget Office, the National Pension is expected to shift to a deficit of 16.1 trillion KRW in 2040, and the deficit is projected to increase to 163.9 trillion KRW by 2054, 14 years later, leading to the depletion of the reserve fund.

Nam In-soon, a member of the Democratic Party of Korea, also stressed the need for discussion, stating, "Although the government announced four pension reform plans and submitted the results of discussions on issues such as increasing the income replacement rate and insurance rates of the National Pension and raising the basic pension by the Public Pension Reform Special Committee of the Economic, Social and Labor Council to the National Assembly in August 2019, no parliamentary-level discussions have taken place even after a year."

In response, Chairman Kim said, "With the government submitting improvement plans for the pension system to the National Assembly, I believe the foundation for social consensus on National Pension reform has been laid," adding, "Now, the important task is how to lead national consensus."

He continued, "There should be efforts to thoroughly inform the public about the reform plans and the future of the National Pension and to seek their understanding," and said, "While providing accurate information and collecting opinions, we will actively support further discussions on additional system improvement measures."

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