Acting Chief Choi: "Ruling and Opposition Parties Must Engage in Grand Consensus on 'Sustainable Pension Reform'"

"Expecting Results Such as Additional Fiscal Input for the Semiconductor Special Act"

Acting President and Deputy Prime Minister Choi Sang-mok, who is also the Minister of Economy and Finance, is speaking at the Cabinet meeting held at the Government Seoul Office Building on the 25th. Photo by Yonhap News

As the ruling and opposition parties engage in a final showdown over pension reform, Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, emphasized on the 25th, "This time, I sincerely hope that a sustainable pension reform plan can be established through a grand bipartisan agreement."

Acting Prime Minister Choi presided over a Cabinet meeting at the Government Seoul Office that morning and said, "Bipartisan cooperation in the National Assembly is urgently needed."

Currently, the People Power Party and the Democratic Party of Korea are in the final stages of discussions regarding the pension reform income replacement rate (the amount received). Initially, the People Power Party insisted on 42-43%, while the Democratic Party demanded 44-45%, but recently the gap has narrowed to around 44%.

The key issue is whether to introduce an automatic adjustment mechanism. The People Power Party holds the position that if an automatic adjustment mechanism is introduced to vary the contribution rate (the amount paid) and the income replacement rate according to demographic and economic conditions, fiscal stability can be partially guaranteed, allowing the income replacement rate to be raised to the level demanded by the Democratic Party.

The Democratic Party is also reportedly positive about the introduction of an automatic adjustment mechanism "conditional on National Assembly approval." However, there is internal opposition within the Democratic Party and labor groups, so it is still uncertain whether a final agreement will be reached. If negotiations fail, the opposition parties including the Democratic Party may unilaterally pass the pension reform bill at the plenary session on the 27th.

Since Acting Prime Minister Choi is emphasizing "bipartisan agreement," there is a possibility that he may exercise the right to request reconsideration (veto) against a pension reform bill passed unilaterally by the opposition. Acting Prime Minister Choi has maintained the position that bipartisan agreement is essential on several sensitive political issues.

On the same day, Acting Prime Minister Choi also urged bipartisan agreement on other issues such as the Semiconductor Special Act and the supplementary budget.

He said, "At the National Assembly-Government policy consultation held last week, the government and the political parties agreed to join forces to overcome the ongoing crisis and livelihood issues," adding, "We expect meaningful results soon regarding the urgent processing of livelihood and economic bills such as the Semiconductor Special Act, the Restriction of Special Taxation Act, and the Reconstruction and Redevelopment Promotion Act, as well as additional fiscal input."

Acting Prime Minister Choi stated, "As the domestic demand slump prolongs, difficulties for small business owners and self-employed individuals are intensifying, and employment conditions are also challenging. Major institutions are lowering their economic growth forecasts for our country this year. Cabinet members are urged to devote themselves to fulfilling promises made to the people."

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