The ruling Democratic Party of Korea and the government have initiated a review of the basic pension system, which currently provides benefits to the bottom 70% of seniors by income.
The move comes as rapid population aging has increased fiscal pressure on the program. Officials are reportedly examining various scenarios, including tiered payments based on income levels and reducing the number of eligible recipients.
The Democratic Party's Special Committee on Pension Reform held a meeting at the National Assembly on Sunday and announced the initiative.
"The basic pension is currently paid to the bottom 70% of seniors, but as we enter a super-aged society, the fiscal burden will increase rapidly," said Rep. Nam In-soon, chair of the special committee. "Amid these changes, clearly defining the role of the basic pension and redesigning its relationship with the National Pension is a task that cannot be delayed."
Rep. Oh Ki-hyung also raised concerns. "With aging and low birth rates, I question whether the state can sustain the basic pension paid to the bottom 70% of those aged 65 and older," he said. "We need to find constructive alternatives that can provide effective retirement security."
The basic pension is paid to seniors aged 65 and older in the bottom 70% income bracket. The program's fiscal demands have long been cited as a growing burden.
The number of basic pension recipients is estimated to reach 7.79 million this year and grow to 8 million next year. This year's basic pension budget totals 27 trillion won, with projections suggesting it could rise to 46 trillion won by 2050.
President Lee Jae-myung raised the issue at a Cabinet meeting last month, questioning Health and Welfare Minister Chung Eun-kyung about the program. "I understood when it was 200,000 won, but now that it exceeds 300,000 won, the fiscal burden is growing—is this the right approach?" Lee said.
In response, the government is reportedly reviewing options to provide tiered pension payments based on income or reduce the number of recipients over the medium to long term.
However, with the June 3 local elections approaching, specific details of the pension reform plan are expected to be unveiled after the elections.