Emergency Measures Committee on 24th
“Income replacement rate of 40%, proposed by former Minister Yoo Si-min”
“Is 2%p nothing … Think about the youth”, ‘[Edaily reporter Kim Han-young] Yoon Hee-sook, head of the Yeouido Institute of the People Power Party, criticized on the 24th, saying, “No party unilaterally implements a national pension reform” and “It overturns the agreement made during the late President Roh Moo-hyun’s administration.”’,
Yoon, head of the Yeouido Institute, stated during the emergency measures committee meeting held at the National Assembly in Yeouido, Seoul, “It was decided during President Roh’s administration to reduce the national pension replacement rate to 40% by 2028.” She explained, “Yoo Si-min, then Minister of Health and Welfare, proposed lowering the replacement rate from 60% to 40% over 20 years, deeming the sustainability of our pension system at risk.”
She continued, “Currently, to ensure a 20-year-old can receive pensions until old age at the current income replacement rate of 40%, the insurance premium rate must be raised by 9% from the current 9%. However, due to the burden, both parties agreed to increase it by just 4%.”
Yoon criticized, “Reversing the replacement rate agreement and increasing it again denies the consensus reached during President Roh’s time, and it’s something we cannot justify to our youth.”
Previously, Democratic Party Policy Committee Chairman Jin Sung-joon stated on MBC Radio’s ‘Kim Jong-bae’s Focus’ that, “If the ruling and opposition parties cannot agree on the pension reform, the Democratic Party cannot handle it independently.”
In response, Yoon emphasized, “Future generations will have to bear not just the national pension but also tax burdens amid aging demographics.” She added, “Last year, the People Power Party proposed raising the replacement rate to 42% to reach a compromise with the opposition.”
Targeting the Democratic Party, she challenged, “Can you look young people in the eye and propose reversing the income replacement rate to 44%? If you cannot, legislate the agreed insurance premium rate first.”
She further warned, “Senior generations claim a 2%p difference in the replacement rate is insignificant and press for agreement. What kind of country is this? Think of the youth.”
Shin Dong-wook, chief floor spokesperson of the People Power Party, stated in a briefing following the meeting, “Our party is open to agreeing on the automatic adjustment mechanism, including an income replacement rate up to 43%.” He added, “The Democratic Party persisted with 44% until the end during the four-party ruling and opposition consultative body.”