[Opinion] Farmers Would Rather Starve Than Leave Seeds Behind

Pension Reform for Future Generations
Government Must Lead with Strong Determination

[Asia Economy] 農夫餓死枕厥種子 (Nongbu Asa Chim Gweol Jongja). This means that a farmer, no matter how hungry and starving to death, leaves seeds for farming. It is a phrase from Dasan Jeong Yak-yong's proverb collection Idamsokchan (耳談續纂). For our ancestors, seeds represented the future, and this proverb reflects a strong will to leave food for future generations even if they themselves starve to death.

What about our reality? Today, the Republic of Korea spares no interest or investment in the near future and the current generation. However, preparations and considerations for the mid- to long-term future and future generations are very insufficient. Especially amid the rapid progression of low birthrate and aging population, the current pension system, based on the principle of intergenerational support, inevitably results in a huge financial burden on future generations. If the current generation encroaches on the rights and welfare of future generations for its own benefit, it not only violates intergenerational equity but also cannot guarantee sustainable development in the future.

Against this backdrop, the Yoon Seok-yeol administration has shown a strong will for pension reform since the beginning of its term. President Yoon emphasized, "Labor reform, education reform, and pension reform must be accomplished for the country's future and future generations, even if they are unpopular." The ruling and opposition parties also agreed last July to form a special parliamentary committee on pension reform. However, according to recent reports, the National Assembly’s Special Committee on Pension Reform has decided to leave the reform proposals on contribution rates and income replacement rates to the government and to prioritize structural reform of the entire public pension system. This can be called a 'predicted breakdown.' Politicians could not have ignored the upcoming general election in April next year.

Warren Buffett, the genius investor, once said to politicians that the 'next election' is more important than the 'next generation.' Ultimately, the indifference toward future generations stems from the political and institutional structural limitations we currently maintain. Official systems in all countries, including South Korea, are structured to respond primarily to the demands of the current generation and are institutionalized to grant legitimacy to governance based on this.

Within democratic systems, most attempts at institutional reform face serious resistance in one or more normative, political, social, or economic aspects. Pension reform, in particular, involves various stakeholders and situational factors such as the party competition structure affecting diversity, the level of ideological polarization, and the degree of social trust and reciprocity. The more ideologically divided a society is, the fiercer the party competition, and the lower the trust in government, the harder it is to reach consensus. This is especially true when the effects of reform, like pension reform, are dispersed across time and space.

Ultimately, the 'ball' for pension reform has returned to the government. The government must return to its original intention and lead the reform with strong will and leadership. France’s government also led pension reform, and previous pension reforms in Korea were government-led. Although there will be strong resistance and backlash from the current generation, future generations will support the government. Here, future generations refer to those who are directly affected by the decisions and actions of the current generation but are either minors or unborn and thus cannot have their voices reflected in real-world politics. If this government can achieve successful pension reform, future generations will record it as the most successful government in history. The DNA of our ancestors, who left seeds for future generations, remains within us!

Seoyongseok, Professor at KAIST Graduate School of Culture Technology and Future Strategy

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