{"id":2206274,"date":"2024-08-26T19:44:16","date_gmt":"2024-08-26T10:44:16","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206274"},"modified":"2024-08-27T17:08:10","modified_gmt":"2024-08-27T08:08:10","slug":"yoon-suk-yeols-upcoming-pension-reform-speech-promises-major-changes","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/08\/yoon-suk-yeols-upcoming-pension-reform-speech-promises-major-changes\/","title":{"rendered":"Yoon Suk-yeol\u2019s upcoming pension reform speech promises major changes"},"content":{"rendered":"
South Korean President Yoon Suk-yeol is <\/span>expected to deliver<\/span><\/a> a speech on pension reform sometime this week, during which he is likely to address the sustainability of the country\u2019s pension fund and intergenerational equity.<\/span><\/p>\n The debate over South Korea\u2019s pension system has been ongoing for years. Previous attempts to reform the system have faltered, largely due to political disagreements and a lack of consensus.<\/span><\/p>\n The 21st National Assembly\u2019s attempts to tackle the issue stalled due to <\/span>disagreements over key parameters<\/span><\/a>, like contribution rates and benefit levels. The 22nd National Assembly has also struggled to make progress, with pension reform often sidelined by <\/span>other pressing political issues<\/span><\/a>.<\/span><\/p>\n Yoon\u2019s ability to resolve these disputes and advance a comprehensive reform plan will determine whether the proposed changes can secure broad political support and achieve long-term success in overhauling South Korea\u2019s pension system.<\/span><\/p>\n PROPOSED REFORMS<\/b><\/p>\n One of the central themes of the upcoming reform proposal will likely include intergenerational equity. The government\u2019s plan reportedly involves a <\/span>tiered approach<\/span><\/a> to insurance premium rates to address fairness among different age groups.<\/span><\/p>\n Under this plan, older workers would experience a more rapid increase in insurance rates than younger workers. For instance, if the current insurance rate of <\/span>9%<\/span><\/a> is increased from 13 to 15%, individuals in their 40s and 50s would see an annual increase of approximately one percentage point over five years.<\/span><\/p>\n In contrast, those in their 20s and 30s would face a slower increase of 0.5 percentage points per year, extending over a longer period.<\/span><\/p>\n