Recent Pension Policy Reform of South Korea (w/ interview of Professor Joo)

(Jooyoung Choi interviewing Professor Joo of Gyeonggi University)

In the status quo, South Koreans are debating over the idea of national pension policies in South Korea, as the government announced that the net fund of national fund is prospected to run out by 2055. Most recently, policial actors have been widely active, as the recent national pension confrence elected the idea over the increase in pension recievement age. Surprisingly, this idea ran smoothly over the conference and the general public, whilst the debate on the idea of to what extent pension income rates must rise, and whether that should lead to increase in the amount of money individuals receive.

According to South Korea pension committee researcher Cheon, this reform is necessary, as the current structure of pension is very unsustainable, and hence both the increase in tax rates and retirement rates are necessary.

Professor Joo elaborates on this issue, claiming that the “Recent trends in South Korea, of an overly populated elderly population may further lead to conflicts between generations, as if the policy continues at this rate, massive burdens will be set on the future generations, hence causing societal conflicts.”

However, the seemingly heated debate over pension rates remains quite cold, as both political parties nor group stands out to push the rates up, while it is the ‘only solution’ to this problem, as Joo proposes.

This is due to the fact that many citizens oppose the idea of increase in pension, as it is directly affecting their lives, and due to the frameworks of media that provides a negative prospect towards national pensions, the citizens refuse to oblige to increase in tax policies. Thus, policies suggested by parties that lack consent of the citizens may decrease the legitimacy and support for the policy, impacting its power scale over the government, as South Korea is a very balanced, bi polar government.

Mr.Choo of the people’s power party claim that it is the responsibility of the national government to take care of the policy changes, but shows that he is fully in support of president Yoon’s policies.

However, Mr.Kang of the democratic party says that the current policies are too burdensome on the individuals, hence the ruling party should not try to impose such heavy taxes on the citizens. Mr.Kang says that “due to the culture of South Korea, people are willing to oblige to a few more years of work, unlike the cases of what happened in Europe. This is a positive push towards a more mature civil society. However, President Yoon may be pushing to far. This can lead to societal deconstruct, as the burden weights on low income households too, seriously affecting quality of life of individuals.”