Kyoohong Cho "National Pension Reform Plan to be Announced in October Next Year... Will Create a 'People's Proposal'"

Minister of Health and Welfare Cho Kyu-hong is attending the Emergency Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 14th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Young-won] Cho Kyu-hong, Minister of Health and Welfare, announced that the National Pension reform plan will be unveiled in October next year.

Minister Cho stated at the national agenda review meeting held at the Blue House State Guest House on the 15th, "According to the law, the long-term financial projection results will be announced in March next year, and based on this, the National Pension system reform plan will be announced in October."

He said, "According to the 2018 National Pension financial calculation, the National Pension will turn into a deficit in 42 years and the fund will be depleted in 57 years," adding, "Since pension reform was not achieved at that time, the depletion year is expected to be brought forward."

Minister Cho explained the necessity of reform, saying, "The monthly National Pension benefit level is less than an average of 600,000 won, leading to criticism as a 'pocket money pension,' while the elderly poverty rate in our country is the highest among the Organisation for Economic Co-operation and Development (OECD). We need to enhance financial sustainability, improve fairness between the younger and older generations, and ensure adequate retirement income."

He also said that public opinion will be prioritized in creating the reform plan. Minister Cho emphasized, "The government's unilateral proposal of alternatives and persuading the public no longer works. The government will listen to experts' opinions based on objective data, actively communicate with the public, and create the reform plan together with the people."

Earlier, the government began collecting public opinions and started the financial projection of the National Pension from August. Minister Cho stated, "We will actively cooperate with the National Assembly's Pension Reform Special Committee, launched in July, to achieve social consensus."

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