Yoon urges pension reform 'acceptable to young people,' stands by med school quota hike

Politics

Yoon urges pension reform 'acceptable to young people,' stands by med school quota hike

Published: 29 Aug. 2024, 17:36

SARAH KIM
kim.sarah@joongang.co.kr

President Yoon Suk Yeol takes a question from a reporter during a press conference at the Yongsan presidential office in central Seoul on Thursday. [NEWS1]

President Yoon Suk Yeol on Thursday underscored plans to increase national pension premiums while recognizing the need to gain youth trust to secure a sustainable income scheme for Korea's aging population.

"We must stipulate in law that the government guarantees the payment of national pensions," Yoon said in a press briefing at the Yongsan presidential office in Seoul, as a means to "instill confidence in young people" that they too will be able to receive stipends in their old age.

From his office, Yoon gave a 40-minute live-broadcast briefing on state affairs covering four key areas of reform: national pension, health care, education and labor. He later took impromptu questions from journalists at the presidential briefing room, covering the themes of reform measures, politics, foreign affairs, economy and social affairs in an 85-minute press conference with local and foreign media, the second of its kind since May.

Regarding national pension reform, Yoon delineated "a need to differentiate the pace of increase in pension premiums between the younger and middle-aged generations."

He said he plans to push for pension reform acceptable to young people, who will bear the burden of paying the highest premiums for the longest period and be the last to receive pensions.

Yoon called for pension reform to follow three principles: sustainability, intergenerational fairness and guaranteed retirement income.

This comes as the government faces the daunting task of reforming its national pension scheme, which is not expected to be able to support Korea's rapidly aging population given the dismal birthrate, with fewer young people to replenish the fund.

According to the state-run National Pension Service (NPS), the national pension fund's coffers are expected to run dry by 2055 under the current scheme. Korea's national pension fund is the third-largest in the world, with a reserve of some 1,113.5 trillion won ($833.98 billion). Workers contribute 9 percent of their income to the fund.

"We will restore trust in the national pension through long-term sustainable reform," Yoon said.

The president said the government will soon announce a more detailed pension reform plan.

He then requested cooperation from the rival Democratic Party (DP), which holds a majority in the National Assembly, in revising the pension law. Despite bipartisan agreement on the need for reform, the effort has faced hurdles over the details.

The big reforms

Regarding public health care, Yoon again underscored his dedication to strengthening regional and essential medical care, which he called the "essence" of medical reform.

He stood by the government's decision to increase the medical school admissions quota, which has led to a junior doctors' walkout since February.

Yoon said that "the emergency medical care system is operating smoothly" because the medical staff on site is "dedicated."

Yoon called for "transforming the structure of tertiary general hospitals that were overly dependent on residents so that specialists and PA nurses become the center of medical services."

He noted that recruitment of medical school students for the 2025 academic year is "currently proceeding without a hitch."

On Wednesday, the National Assembly passed a bill allowing physician assistant (PA) nurses to play more significant roles in treating patients.

"Now is the time for us, our country, to step up and work to make our people safer," Yoon said.

Yoon called for labor reform to match "global standards" and "flexibility" to advance the country's labor market and enable corporate growth with increased workers' compensation.

Regarding education reform, Yoon stressed the concept of "public care," balancing learning with child care programs.

"The four major reforms of pensions, medical care, education and labor are dire tasks that the survival and future of Korea depend on," Yoon said, pledging to make sure to achieve changes in these sectors.

Yoon assured that the Korean economy "is clearly reviving and will take an even bigger leap forward."

He highlighted his administration's achievements, including deregulation, establishing semiconductor mega clusters and reviving nuclear power plant projects, saying these efforts contribute to the country's economic growth and give Korea a sharper competitive edge abroad.

He acknowledged that the recovery of domestic consumption is sluggish compared to exports but expressed hope for stimulated demand ahead of next month's Chuseok holiday.

Of politics and controversies

Yoon skirted more challenging questions during the press conference, such as the investigation into first lady Kim Keon Hee's receiving of a luxury handbag from a pastor in 2022.

"It's not appropriate for me to comment," he said when asked by a reporter about public criticism that the prosecution investigating was not in line with people's expectations. He noted that he has refrained from commenting on such investigations as president, and in this case, it was also a "family-related" matter.

However, he indirectly refuted public criticism of the prosecution's conducting of a private investigation of the first lady by citing his experience as a prosecutor visiting a former president's wife at her private residence to investigate her.

Regarding reviving an office for the first lady, Yoon said that there is no proper space currently at Yongsan but that one would be made when such a venue is found.

Last week, the Seoul Central District Prosecutors' Office concluded its investigation of Kim, deciding to drop charges, but Prosecutor General Lee One-seok said an investigation review committee will deliberate on the case.

Yoon also downplayed the persistent speculation of his friction with conservative People Power Party (PPP) Chairman Han Dong-hoon, his former justice minister and fellow prosecutor-turned-politician.

This came amid reports that Yoon's planned dinner with PPP leadership for Friday was postponed amid alleged differences over the medical school quota hike.

"There is no problem between the party and the government," Yoon said. "Isn't liberal democracy about having diverse opinions on various issues?" He assured the public that there is frequent communication between the PPP and his office, dispelling speculation of tensions.

Yoon also didn't mention DP Chairman Lee Jae-myung by name during the press conference, avoiding directly answering whether he will meet with his former presidential race rival soon.

When asked about the military's alleged intervention in a probe into the death of a young Marine in a rescue mission during heavy rain and flooding last year, Yoon said he believed the police investigation did a thorough job. He said the parliamentary hearing process "naturally revealed that there was no real external pressure."

Yoon also clarified that he intends to keep Han Duck-soo as his prime minister "for the time being" as he is doing a good job. Prime Minister Han tendered his resignation in April after the PPP's defeat in the general election.

Yoon also noted that prime minister nominees must obtain the consent of the National Assembly, a tenuous process, and his administration faces many state affairs and a parliamentary audit in autumn.

Navigating diplomacy with changing leaders

Amid expected leadership changes in the United States and Japan, Yoon assured that South Korea will continue to pursue seamless trilateral cooperation with the two countries.

This would align with the agreements made at the historic Camp David summit in August 2023, meant to strengthen three-way security in light of North Korea's rising threats.

His summit partners, U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida, are on their way out. Both recently announced that they would not seek reelection in their respective countries.

Yoon said the trilateral cooperation framework established through the Camp David summit "is important not only to the Indo-Pacific region but also the global economy and security," benefiting all three countries.

He noted that a change in the leadership will not change this framework, which he said will be upheld through these diplomatic agreements.

Yoon didn't formally confirm a reported visit by Kishida to Seoul, noting diplomatic consultations are underway, but he said he would always "welcome" the prime minister as part of their agreement to revive shuttle diplomacy last year.

Regarding a new Japanese prime minister taking office, Yoon said, "I would like to say that no matter which leader takes charge of state affairs, we will continue to maintain cooperation and synergy for the future between South Korea and Japan."

Yoon previously held a rare press conference on May 9 to mark his second anniversary in office, his first such formal media encounter in 21 months. His office promised more frequent public communication after criticism over the lack of such opportunities.

BY SARAH KIM [kim.sarah@joongang.co.kr]