[Interview] Kim Sung-joo "National Pension 'Pay More, Receive More' Structure Possible... Aiming for Minimum 1 Million Won with National Pension + Basic Pension"

Instead of 'Pay More, Receive Less' Pension Reform, Structural Reform Needed
Establish a Multi-layered Income Security System with National Pension and Basic Pension
"If the Public's Elderly Poverty Situation Is Objectively Viewed, Structural Reform Will Be Undertaken"

Kim Sung-joo, Member of the Democratic Party of Korea./Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Naju-seok] "There is a perception that Yoon Seok-yeol’s pension reform means ‘pay more and receive less,’ but there is also reform that involves ‘paying more and receiving more.’ It is possible to strengthen old-age income security while stabilizing finances."

Kim Seong-ju, the opposition party secretary of the National Assembly’s Special Committee on Pension Reform and a member of the Democratic Party of Korea, stated in an interview with Asia Economy on the 15th that regarding pension reform, a national issue, "We need to go beyond ‘parameter reform’ focused on financial stability and pursue ‘structural reform’ that can also ensure old-age income security." Kim participated in the 2015 civil servant pension reform and served as the chairman of the National Pension Service under the Moon Jae-in administration, making him a pension expert in the political sphere.

On the same day, Kim held an internal discussion on pension reform issues at the National Assembly with Democratic Party members from the Pension Special Committee and the Welfare Committee. This was initiated within the party as the National Assembly’s Pension Special Committee had been inactive.

Kim emphasized, "It is necessary to show the public the reality of old-age poverty in our country," and argued, "Sufficient and objective data should be provided on how to spend old age comfortably and securely so that the public can make informed decisions." Through this, "We should show how much current subscribers pay in premiums and how much they can receive. If it is difficult to live on this, they should be given the choice to either bear a slightly higher burden and secure old-age protection through a state-run pension system like the National Pension or rely on private pensions through personal contracts." He added, "Currently, no such explanations are given; instead, there are threats like ‘the finances will be depleted in a few years, so pay more premiums’ or ‘aren’t you sorry for your children?’ which makes it burdensome to pay more even if one wants to. The National Assembly should play a role in properly persuading the public."

Kim also stressed the need to consider retirement pensions. He said, "A multi-layered income security system must include the linkage between the basic pension and the National Pension as a foundation, and retirement pensions must be included as well." He argued, "It is a bipartisan agreement in the National Assembly’s Pension Reform Special Committee to discuss the basic pension, and it is necessary to go further and include retirement pensions in the committee’s discussions."

He noted, "Currently, the basic pension is 300,000 won, and the average National Pension benefit is 570,000 won; even combined, they do not reach 1 million won." He added, "If these two are well combined to secure a state-run pension system providing at least 1 million won, a minimum standard of living is possible."

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