Reporters watch President Yoon Suk Yeol’s televised policy briefing ahead of a press conference at the presidential office in Seoul on Aug. 29, 2024. (Image courtesy of Yonhap)
SEOUL, Aug. 29 (Korea Bizwire) — President Yoon Suk Yeol said Thursday that the government will pursue gradually increasing the pension premiums for the younger generation and the middle-aged generation at a different pace, as well as introduce mechanisms to enhance the pension system’s financial stability.
Yoon outlined a set of reform measures during a policy briefing as South Korea grapples with the rapid depletion of its pension fund due to an aging population and declining birth rate.
“The government should codify the guarantee of national pension payments into law to assure young people that they will receive their pensions,” Yoon said in a televised address.
The state-run National Pension Service said earlier that the fund is forecast to be depleted in 2055 after posting its first shortfall in 2041.
Yoon pledged to adjust the contribution and income replacement rates, increase the pension fund’s profitability and introduce automatic stabilizing mechanisms to ensure the pension’s long-term sustainability while expanding credit for those who give birth and complete military service.
“We will restore public trust in the national pension by pursuing sustainable reforms that can endure over time,” he said.
In addition, Yoon said the government will push to reform the basic, retirement and private pension to enhance the welfare of retirees.
Yoon said the government will soon announce the detailed pension reform plan, asking for the active cooperation of the opposition-controlled National Assembly in revising the pension law.
The latest proposal follows previous attempts by the ruling and opposition parties to reach a consensus on pension reform, which failed in the last National Assembly.
While both sides agreed on the need for changes that would require higher contributions and provide greater benefits after retirement, they diverged on the appropriate income replacement ratio.
President Yoon Suk Yeol answers a reporter’s question during a press briefing at the presidential office in Seoul on Aug. 29, 2024. (Image courtesy of Yonhap)
In the health care sector, Yoon pledged to push through medical reform measures aimed at strengthening regional and essential medical services, following the government’s decision to increase the medical school quota, a move that has sparked strong opposition from the medical community.
“We will restructure general hospitals, which have been overly reliant on resident doctors, so that specialists and physician assistant nurses are at the center of medical services,” Yoon said.
Concerns persist over potential disruptions in emergency rooms during the Chuseok holiday as a majority of junior doctors remain off work after the government’s plan to increase the medical school quota by 2,000 seats annually over the next five years.
On Wednesday, the National Assembly passed the nursing act to provide a legal framework for physician assistant nurses to assist doctors in performing medical procedures and offer enhanced legal protection to nurses.
(Yonhap)
