President Lee: "Why Is an Application Necessary?... It Causes Practical Inequality"

[Anchor]

Regarding the youth's first-ever pension premium support program set to take effect next year, President Lee Jae-myung pointed out problems with operating it on an application basis. He ordered improvements to the system, stating that if only well-informed people apply and receive benefits, it is no different from deceiving the public.

Reporter Kang Min-u reports.

[Reporter]

There is a program in which the National Pension Service pays the first month's pension contribution when youth aged 18 to 26 who have no prior record of pension payments enroll in the national pension and submit an application.

The program is called the "First-in-a-Lifetime Pension Premium Support Program."

A person can enroll first and make payments later, which provides the advantage of increasing the eventual payout amount as the overall subscription period lengthens.

At today's (October 20) Cabinet meeting, Minister of Health and Welfare Jung Eun-kyeong explained this program scheduled for implementation next year, to which President Lee Jae-myung pointed out:

[President Lee Jae-myung: "Isn't it half deception? Why promote it? You make an effort to publicize it. You can just grant it, as we (the government) are the entity in charge."]

His point was that operating it on an "application basis" rather than supporting all eligible youth is problematic.

[President Lee Jae-myung: "Why is an application absolutely necessary? Why not grant it if they don't apply? Doesn't this actually cause practical inequality?"]

The concern is that only certain youth with parents or acquaintances knowledgeable about "pension wealth management" 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 is making it an "application basis" out of concern over financial burdens, and ordered improvements in its operation, 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 foreigners who have resided in South Korea only for a short period use the national pension retroactive payment system to receive a lifetime pension, President Lee instructed officials to devise measures to reduce benefits, even by applying the revised system retroactively.

[President Lee Jae-myung: "It feels unfair that someone is using expedients to receive benefits far exceeding their contributions using the pension resources I paid."]

President Lee also emphasized that tolerating unfair situations must no longer be permitted, which is interpreted as intending that national pension issues should be approached through the lens of fairness, an issue to which the youth are particularly sensitive.

Video by Jeong Sang-bo and Yoon Hyeong | Video Editing by Yoo Mi-ra | Graphics by Jaegal Chan
※ Please note: This article was translated by AI and may contain errors.