'Pension Reform Pledge Gains Momentum Following Agreement in 4-Party Presidential Debate'

Sim Sang-jung Supports National Pension Integration Pledge
Lee Jae-myung and Yoon Seok-youl Plans Expected Soon

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Sim Sang-jung, the Justice Party presidential candidate (photo), announced a pension reform pledge on the 7th focusing on "strengthening the security of the National Pension and ensuring future sustainability." This came after the four ruling and opposition candidates agreed during the presidential debate broadcast on the 3rd, with Sim presenting an implementation plan. It is reported that Lee Jae-myung of the Democratic Party and Yoon Seok-youl of the People Power Party will also include pension reform in their pledges.

On the same day, at the event "Generation Born in the 90s Asks: Can We Receive Our Pension?" held in Yeouido, Seoul, Candidate Sim stated, "No one denies the necessity of pension reform. The important thing is ‘what direction the reform will take’," unveiling his pension reform pledge.

Regarding the core issues of pension reform, he cited ▲the sustainability of the National Pension’s finances ▲strengthening old-age income security to address high elderly poverty ▲and pension integration to ensure fairness among pensions.

Candidate Sim first expressed his position to raise the National Pension contribution rate to reduce the burden on future generations. He explained, "If the current state remains unchanged, future generations will bear both the imbalance in revenue and expenditure and the burden of super-aging." Regarding specific figures for the contribution rate, he mentioned, "The range of contribution rate increases proposed in the Moon Jae-in administration’s pension reform plan is the current 9%," adding, "It could be discussed at a level of 3 to 4 percentage points."

He also promised to effectively strengthen the National Pension’s security by extending the subscription period for unstable workers and subscribers, and to raise the basic pension to 400,000 won. Additionally, he pledged to raise the subscription age for the National Pension through job policies for those in their 60s and to enhance the National Pension through citizens’ lifelong income. Furthermore, to resolve the OECD’s highest elderly poverty rate (43.4%), he announced plans to increase the basic pension from 300,000 won to 400,000 won.

He also revealed plans to integrate special occupational pensions such as the public officials’ pension into the National Pension system. Candidate Sim explained, "We will apply the National Pension system to new public officials. Current public officials covered by the public officials’ pension will follow the results of social discussions," adding, "Private school pensions and military pensions will also follow the path of the public officials’ pension and be subject to National Pension standards."

Following Candidate Sim’s announcement of the pension reform plan, movements from candidates Lee Jae-myung and Yoon Seok-youl are expected to accelerate. These candidates plan to present pension reform-related pledges, emphasizing that pension reform must be achieved in the next government. Officials from the Democratic Party and People Power Party presidential campaigns explained, "Although detailed contents of pension reform have not yet been released, the pledge to establish a pension reform committee and carry out reforms will be included in the pledge book."

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