Basic Pension Raised to a Maximum of 323,180 Won per Month... "Reflecting Inflation"

[Asia Economy Reporter Byeon Seon-jin] This year, the basic pension standard pension amount (for single-person households) will be increased to a maximum of 323,180 KRW per month, considering last year's consumer price index (5.1%).

The Ministry of Health and Welfare announced on the 8th that it will give administrative notice regarding the draft announcement to raise the basic pension standard pension amount. Current basic pension recipients will receive the increased pension amount starting from the January payment on the 25th. Last year, the basic pension standard amount was 307,500 KRW.

The basic pension system was introduced in July 2014 to guarantee retirement income for elderly people aged 65 and over who contributed to national development, aiming to alleviate elderly poverty. Due to the increase in the standard pension amount reflecting inflation and aging population, the related budget, which was 6.9 trillion KRW at the time of introduction, has increased to 22.5 trillion KRW this year.

The Ministry of Health and Welfare explained that with the increase in the basic pension standard amount, the relative poverty rate among elderly people aged 65 and over decreased from 44.5% in 2014 to 37.6% last year.

Basic pension applications can be submitted by those aged 65 and over regardless of their place of residence at local administrative welfare centers in towns, townships, and neighborhoods nationwide, at National Pension Service branches, or through the Ministry of Health and Welfare’s internet portal site 'Bokjiro'. If mobility is difficult, applicants can request the National Pension Service branch’s ‘Visiting Service’ to submit the basic pension application form.

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This administrative notice will be held for three days from the 9th to the 11th, and after collecting opinions during the notice period, the draft announcement will be finalized.

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