Nominee for Korean Finance Minister Wants to Reform National Pension System
It sounds like South Korea is having the same problems with their pension system as the U.S. has with Social Security:
Deputy Prime Minister and Minister of Economy and Finance nominee Choo Kyung-ho has called for an overhaul of the state pension fund, which experts agree is crucial considering the country’s aging and shrinking population.
Korea Times
“Given the low birth rate and the increase in the elderly population, failure in reform will dent the fund’s financial soundness and drastically increase the burden on younger generations,” Choo said in a Q&A submitted to the National Assembly as part of the preparations for his Assembly hearing scheduled for May 2.
He views the current pension fund management system under the National Pension Service (NPS) as inefficient, saying, “It will only increase the national debt and will not last long.”
He called for a “comprehensive check-up” on the premium rates and the minimum age that people are eligible to receive pension benefits, among other factors.
The pension fund is on course to be depleted under the existing system, possibly in the 2050s.
Worse still, the population is aging rapidly.
You can read more at the link.
