President Lee Jae-myung on October 20 criticized the application-based approach of the 'First Pension Premium Support Program,' set to launch next year, stating it creates "substantial inequality" and called for a reevaluation of the program's design.
During the 45th Cabinet meeting at the Blue House, President Lee raised concerns after receiving a report from Minister of Health and Welfare Jeong Eun-kyeong, questioning, "Why is an application necessary?" He emphasized that not providing support to those who do not apply effectively leads to inequality.
The First Pension Premium Support Program will apply to individuals born in 2009 who turn 18 after January 1, 2027. Young people aged 18 to 26 without a history of National Pension contributions can apply for government support for their first month's premium, which is expected to be around 42,000 won next year.
By receiving support for their first premium, individuals can later make contributions for periods when they were unable to pay due to education or military service, thereby increasing their pension benefits in retirement.
President Lee expressed concern that an application-based system would disproportionately benefit those who are quick to gather information or have the time to apply. He stated, "Only those who are quick, diligent, and have time will apply," criticizing the notion that the program is designed with the expectation that some will forgo or be unable to apply, calling it a form of deception by the state.
He questioned whether it is reasonable for state policy to rely on some individuals not applying and suggested the need to revisit the program, including adjusting the eligible age based on financial conditions.
The government initially established the first premium support program to alleviate the issue where only families with economic means and access to information could enroll their children in the National Pension as soon as they turned 18, securing future contribution opportunities. However, President Lee pointed out that leaving an application process could create another information gap, contrary to the program's intent.
Regarding the issue of foreigners' contributions to the National Pension, President Lee also called for adjustments to be made for cases that benefited from the system before the changes were implemented.
The recently passed amendment to the National Pension Act expands the principle of reciprocity, which previously applied only to mandatory enrollment and lump-sum refunds, to include foreigners' future contributions and family pensions. Consequently, only nationals from countries that allow future contributions for South Koreans will be permitted to make such contributions domestically.
President Lee stated, "While the law has changed to prevent future contributions, measures are still needed for those who contributed before the change. It may seem fair to pay everyone who has contributed, but ultimately, it is unfair. Adjustments should be made based on appropriate contributions."
He added, "Today, the issue is not the scale but the existence of unjust and unfair situations. Allowing such circumstances to persist is unacceptable."
* This article has been translated by AI.
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