Yoon Responds to Criticism of Weak Pension Reform: "It's Not About Numbers... Doing Our Best Without Political Calculations" (Comprehensive)

Yoon Administration Directly Refutes Criticism of 'Blank' Pension Reform... "We Will Do Our Best to Achieve National Consensus"
Urges Cabinet Members to Take 'On-Site Actions'... Listens to Field Demands on Foreign Workers' Wages, Kim Young-ran Act, etc.
Orders Follow-Up on Middle East Tour, Emphasizes "Communication to Ensure Smooth Progress of Intergovernmental Cooperation Projects"

President Yoon Suk-yeol stated on the 30th, "Pension reform is not an issue that can be concluded by presenting only definitive numbers without scientific evidence or social consensus to support it." He directly refuted criticisms that the government’s pension reform plan, released after many twists and turns, omitted all key elements of parametric reform such as adjustments to contribution rates and income replacement rates, promising, "The government will do its best to achieve national consensus on pension reform without calculating political gains or losses."

On the morning of the same day, President Yoon presided over the 45th Cabinet meeting at the Yongsan Presidential Office, criticizing the Moon Jae-in administration’s pension reform direction by saying, "Past governments submitted four alternatives without the will for pension reform, causing only conflicts," and evaluated, "Our government has been steadily preparing to achieve proper pension reform without repeating such mistakes."

President Yoon Suk-yeol is speaking at the Cabinet meeting held on the 30th at the Yongsan Presidential Office building in Seoul.
[Photo by Yonhap News]

Criticism of Weak Plan Due to Omission of Contribution Rate, Retirement Age, and Income Replacement Rate... Yoon: "Accumulating Scientific Evidence, Upholding Promises Through Difficult Social Consensus"

The Ministry of Health and Welfare announced a pension reform plan on the 27th that excluded specific numerical adjustment proposals for contribution rates, retirement age, and income replacement rates. Taking the stance that "public discussion should come first," it effectively passed the responsibility for reform to the National Assembly. However, following the government’s announcement, there were continued criticisms that the parametric reform was essentially a 'blank slate.' The government only included general principles in the comprehensive operation plan, such as the inevitability of gradual increases in contribution rates and the need to consider the burden on future generations if the income replacement rate is raised.

In response, President Yoon expressed discomfort, saying, "There are opinions that this comprehensive national pension operation plan is a 'weak plan without numbers' or 'playing it safe ahead of elections.'" He emphasized that pension reform should not be concluded by presenting numbers alone, explaining, "We have accumulated scientific evidence through over 80 meetings with top experts, including financial projections and actuarial verification. Even if it is difficult and challenging, we will keep the promises made to the people through social consensus."

He also promised, "The executive branch will thoroughly prepare scientific evidence, public opinion surveys, and options to be selected to facilitate bipartisan consensus," adding, "The government will submit the vast data it has diligently prepared along with the comprehensive operation plan to the National Assembly. Since pension reform is completed through legislative amendments, the government will actively participate in and support the National Assembly’s reform plan preparation and public discussion process."

Minister of Health and Welfare Cho Kyu-hong also explained at the briefing on the comprehensive national pension operation plan that the reason for not presenting parametric reform proposals was, "We thought it was more appropriate to create the plan together with the public through a public discussion process rather than the government presenting specific numbers." He added, "Considering that structural reform discussions for old-age income security are currently underway at the National Assembly’s Pension Reform Special Committee, it is appropriate to link the parametric reform with the structural reform discussions since contribution rates and income replacement rates may change depending on the outcome."

Reflecting Voices from the Field on ILO Provisions, Kim Young-ran Act, Serious Accident Punishment Act... "Respond Swiftly to Cries from the Field"

He urged cabinet members to actively engage in 'field visits.' President Yoon said, "Last week, at the Presidential Office, the Chief of Staff, senior secretaries, secretaries, and administrative officers visited 36 various livelihood sites such as small business workplaces and welfare administration sites to hear the urgent voices of the people firsthand," urging solutions regarding the 'ILO (International Labour Organization) provision that foreign workers’ wages must be equal to those of domestic workers,' 'restrictions on food prices and gift limits under the Kim Young-ran Act,' and the 'Serious Accident Punishment Act' to be applied from next year.

He notably cited specific cases directly. President Yoon mentioned, "Small business owners and self-employed people struggling with high interest rates sighed deeply, saying it feels like they are 'servants to the banks' as they work themselves to death only to pay off loan principal and interest," "Restaurants employing foreign workers cried out that rising labor costs have put self-employed people on the brink of life and death, appealing for emergency measures, questioning whether to withdraw from the ILO provision requiring equal pay for foreign workers," and "There were also appeals to improve the Kim Young-ran Act’s restrictions on food prices and gift limits, which are too detached from reality."

He particularly evaluated, "There were sharp criticisms that could only be heard on-site, such as voices fearing the Serious Accident Punishment Act to be applied from next year in workplaces with fewer than 50 employees, concerns about the lack of security infrastructure like CCTV in crowded areas near Hongdae, and urgent demands for government measures to address the rapidly increasing after-school childcare needs in new towns with growing populations." He emphasized, "There is nothing more urgent than responding swiftly to the cries of the people waiting for help right before our eyes and the desperate pleas from the field."

President Yoon Suk-yeol is declaring the opening of the Cabinet meeting held on the 30th at the Yongsan Presidential Office building in Seoul.
[Photo by Yonhap News]

Summit Diplomacy Is the Optimal Platform for Market Development... "More Participation of SMEs and Youth in Economic Delegations"

He also addressed follow-up measures regarding the recent Middle East tour. President Yoon said, "Combining the $29 billion MOU (Memorandum of Understanding) signed during the Saudi Crown Prince’s visit to Korea at the end of last year and the $30 billion investment pledge announced during the UAE (United Arab Emirates) state visit earlier this year, a massive $79.2 billion, approximately 107 trillion won, playground for our companies has been newly created in the Middle East," urging, "Please communicate closely with the counterpart countries to ensure that the cooperative projects agreed upon between heads of state proceed without any setbacks."

From the 21st, President Yoon became the first Korean head of state to make a state visit to Saudi Arabia and Qatar over four nights and six days. In Saudi Arabia, the two countries adopted a joint statement for the first time in 43 years and agreed to promote large-scale defense cooperation. In Qatar, bilateral relations were elevated to a 'comprehensive strategic partnership.' Following the summit between President Yoon and Qatar’s Emir Tamim bin Hamad Al Thani, a single contract was signed for the construction of LNG carriers worth $3.9 billion (about 5.2 trillion won), the largest ever.

Most importantly, it is significant that a foundation was laid for long-term economic cooperation with the two countries, known for their 'oil money.' The cooperation system, previously formed only through construction booms, has expanded to future industries such as renewable energy, smart cities, IT, and manufacturing. This is evident in the tour’s achievements. At the Korea-Saudi Investment Forum held on the 22nd, contracts and MOUs related to future industries were signed, including 7 in energy and power (2 contracts, 5 MOUs), 8 in infrastructure and plants (1 contract, 7 MOUs), 19 in advanced industries and manufacturing (electric vehicles, etc.) (2 contracts, 17 MOUs), 10 in new industries (1 contract, 9 MOUs), and 2 other MOUs including financial cooperation. The MOUs and contracts signed at the subsequent Korea-Qatar Business Forum focused on securing stable supply chains in energy (2), new industries (6), plants (1), and trade finance (1).

Accordingly, he presented plans to be more proactive in summit diplomacy. President Yoon said, "Summit diplomacy is the optimal platform to help our people and companies pioneer global markets," adding, "Global market development requires a cooperative ecosystem formed by large corporations, mid-sized companies, SMEs, and young startups to create a massive fleet. Therefore, we will continue to involve many small and medium-sized businesspeople and young entrepreneurs in economic delegations."

Meanwhile, President Yoon also requested the prompt passage of livelihood-related bills awaiting legislation in the regular National Assembly session. He said, "I have already emphasized the necessity of legislation such as the National Finance Act introducing fiscal rules for sound finances, the Subsidy Management Act to prevent accounting fraud, the Industrial Bank Act for regional balanced development, and the Space Aviation Agency Act for future industrial strategies," mentioning even the 'Amendment to the Act on the Aggravated Punishment of Specific Economic Crimes,' which includes support and punishment for jeonse fraud. President Yoon urged, "I ask the National Assembly to expedite the amendment of the Act on the Aggravated Punishment of Specific Economic Crimes to prevent the recurrence of heinous crimes targeting the powerless and to aggregate damages from crimes affecting many victims for heavier punishment."

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