[Anchor]
Regarding the youth first-time pension premium subsidy program scheduled to take effect next year, President Lee Jae-myung pointed out problems with operating it on an application basis. He called for improvements to the system, stating that if only well-informed individuals apply and receive benefits, it is no different from deceiving the public.
Kang Min-u reports.
[Reporter]
There is a program in which the National Pension Service subsidizes the first month's pension premium for young adults aged 18 to 26 who have no prior pension payment history, provided they apply when enrolling in the National Pension.
It is titled the "First-Time Pension Premium Support Program."
Individuals can enroll first and make payments later, which offers the advantage of increasing future payout amounts by extending the total enrollment period.
At a Cabinet meeting yesterday (October 20), Minister of Health and Welfare Jung Eun-kyeong briefed attendees on this program scheduled for implementation next year, prompting President Lee Jae-myung to point out:
[President Lee Jae-myung: "Isn't it half deception? Why even promote it? You make such efforts to publicize it. We (the government) are the entity in charge, so we should just provide it."]
His point was that operating the program on an "application basis" rather than providing support to all eligible youths is problematic.
[President Lee Jae-myung: "Why is an application absolutely necessary? Why withhold support if they do not apply? Doesn't this actually cause substantial inequality?"]
This means that only certain young people who have parents or acquaintances knowledgeable about pension financial planning are likely to benefit. In fact, as of December last year, the National Pension enrollment rate for 18-year-olds in Seoul's three Gangnam districts stood at 10.6%, nearly three times the national average.
President Lee questioned whether the government made it an application-based system out of concern over fiscal burdens, and called for improvements in operational methods, such as raising the minimum retroactive age.
[President Lee Jae-myung: "I question whether it is appropriate as a national policy to encourage tricks while hoping that some people will not apply."]
In addition, regarding cases where foreign nationals who have resided in South Korea only briefly receive a lifetime pension by utilizing the National Pension's retroactive payment system, President Lee instructed officials to devise measures to reduce benefits, even if it requires retroactive application of revised regulations.
[President Lee Jae-myung: "It feels unfair: someone is taking advantage of loopholes to gain benefits far beyond their contributions, using the pension resources that I paid."]
President Lee also emphasized that tolerating unfair situations should no longer be accepted, which is interpreted as an intention that issues regarding the National Pension should be approached through the lens of fairness, a matter particularly sensitive to the younger generation.
(Camera by Jeong Sang-bo and Yoon Hyeong | Video edited by Yoo Mi-ra | Graphics by Jegal Chan)
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