'High Salary and Billion-Won Pension' Jo Gyu-hong... Ruling and Opposition Parties Clash at National Assembly Confirmation Hearing

Cho "Apologies for the public's doubts"

Cho Kyu-hong, nominee for Minister of Health and Welfare, is delivering opening remarks at the confirmation hearing held by the National Assembly's Health and Welfare Committee on the 27th.
[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] On the 27th, the ruling and opposition parties clashed during the confirmation hearing for Cho Gyu-hong, nominee for Minister of Health and Welfare, over the fact that Cho received a large salary from an international organization while simultaneously receiving a public official pension worth hundreds of millions of won. Opposition lawmakers criticized Cho for receiving a high salary and a pension worth hundreds of millions of won while registering as a dependent under his spouse for health insurance benefits, arguing that such behavior is out of touch with the "public sentiment." In response, ruling party lawmakers from the People Power Party defended Cho, stating that there were no procedural issues and that his actions were not illegal.

Democratic Party lawmaker Kim Won-i said at the hearing, "When the nominee worked as a director at the EBRD, he received a salary of 1.1 billion won and, separately, a public official pension, while registering as a dependent under his spouse for health insurance, thus not paying health insurance premiums but still receiving benefits." He added, "If the nominee becomes the Minister of Health and Welfare, he will face challenges such as strengthening the financial soundness of health insurance and reforming the national pension system. I question whether he is a qualified figure who meets the public's expectations."

Democratic Party lawmaker Shin Hyun-young also said, "Do you think it aligns with the fairness and common sense that President Yoon Suk-yeol has talked about, that despite earning hundreds of millions of won, he enjoyed such benefits?" She pointed out, "Our citizens are in a situation where they have to bear more health insurance premiums, but he received a public official pension without any reduction while not paying health insurance premiums despite his high salary. How can the public trust him if he says he will reform the pension system?" Justice Party lawmaker Kang Eun-mi criticized, "Many workers who do not even earn the minimum wage feel deprived knowing that the nominee received about 40 million won annually in pension despite having a salary of 300 million won."

Ruling party lawmakers argued that income from the international organization EBRD is tax-exempt and thus exempt from income tax, and that the public official pension was paid because the payment period had arrived, so there were no legal or procedural problems. People Power Party lawmaker Kim Mi-ae said, "Ordinary citizens might think the nominee received a high salary, but there is nothing illegal about it," adding, "The nominee seems to have had a strong principle of not violating the law during his 30 years of public service."

People Power Party lawmaker Seo Jeong-sook said, "No human can be perfect," and requested, "Considering the deepening wealth gap and difficulties faced by marginalized groups, I hope that if he becomes minister, he will institutionally supplement these issues." Lawmaker Lee Jong-sung from the same party said, "According to the bank establishment agreement, EBRD income is not subject to taxation, and the nominee has repeatedly confirmed whether he was subject to pension reduction," adding, "The claim that the nominee deliberately evaded income reporting or omitted it to receive excessive pension is an absurd allegation."

However, Democratic Party lawmakers urged the nominee to apologize, saying that his large salary and pension are out of touch with the public's expectations. When lawmaker Kim Won-i asked, "Are you willing to apologize for inappropriate conduct toward the public?" Cho replied, "I apologize for the public’s suspicion regarding the full receipt of the public official pension and registration as a dependent under health insurance," adding, "Although I have never received economic or tax benefits, I also apologize because the suspicion of generation separation does not meet the public’s expectations." In response to Democratic Party lawmaker Nam In-soon’s criticism that "Although the nominee said there is no legal problem, the public feels disillusioned, thinking that he exploited loopholes in the system to receive benefits," Cho said, "I apologize for the public’s suspicion."

Earlier, after retiring as Deputy Director-General of Fiscal Management at the Ministry of Strategy and Finance, Cho worked as a director at the European Bank for Reconstruction and Development (EBRD), receiving an annual salary of about 300 million won. During the approximately two years he worked as an EBRD director, he received a total salary of about 1.1 billion won, and separately received a public official pension of 114 million won.

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