[2021 National Audit] "Prolonged COVID-19, Support National Pension Contributions for the Youth Generation"

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[Asia Economy Reporter Seo So-jeong] Amid the prolonged COVID-19 pandemic causing difficulties for unemployed youth and others, there is a call to actively consider support measures for National Pension insurance premiums for the younger generation.

On the 13th, Shin Hyun-young, a member of the National Assembly's Health and Welfare Committee from the Democratic Party of Korea, stated at the National Pension Service audit, "The COVID-19 pandemic has severely impacted youth employment cliffs, financial hardship, and depression, with an increase in solitary deaths among young people. However, the actual situation regarding the rise in youth poverty has yet to be fully assessed."

According to Supreme Court data, the number of personal bankruptcies among people in their 20s, who were hit hard by COVID-19 last year, increased by 10.5% compared to the previous year. In 2019, the number of personal bankruptcies among those in their 20s had only increased by 0.1% compared to 2016, showing a significant rise recently.

Shin expressed concern, saying, "Youth bankruptcies lead to arrears in National Pension and health insurance premiums. Looking at the arrears status by age group among regional subscribers of the National Pension, while the total number of arrears decreased by 2.6% over the past five years, those in their 20s uniquely increased by 52.9%."

She added, "It is presumed that the difficulties faced by unemployed youth, job seekers, and self-employed individuals due to the prolonged COVID-19 pandemic are the causes," and inquired whether the National Pension Service is reviewing any measures to support National Pension insurance premiums for the younger generation.

In response, Kim Yong-jin, the Director of the National Pension Service, said, "I think a significant number of young people may be classified as low-income earners," and added, "We will ensure that young people are fully supported under the low-income insurance premium support project for regional subscribers scheduled to be implemented from next year."

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