Without substantial structural reforms, South Korea’s National Pension Service (NPS) could be in deficit by 2041 and risk depletion by 2055 due to the country’s rapidly aging population and shrinking workforce. This could potentially destabilize the nation’s capital markets and cause significant financial instability and societal disruption.

In 2007, South Korea overhauled its pension system, requiring employers and employees to contribute 9% of the employee’s monthly earnings. By 2024, retirees turning 65 can expect to receive 42% of their wages as pension benefits.

However, despite both major parties agreeing to increase the contribution rate to 13%, disagreements over the income