Ahn Cheol-soo, a member of the People's Power Party, said, ”National Assembly pension reform should not become a debt bomb... We need a Swedish-style defined contribution system” (South Korea)

On the 5th, Ahn Cheol-soo, a member of the ruling People's Power Party, criticized the National Assembly's Special Committee on Pension Reform for discussing the National Pension Reform Bill, saying, "The first button was buttoned incorrectly."
He argued that the system should be changed to a 'Swedish-style defined contribution' system, where you get back what you put in.
Regarding the two proposed reforms, he pointed out that "other than delaying the time when the fund will run out by seven to eight years, these are worsening proposals in that they lose the objective of pension reform, which was to ensure the sustainability of the national pension system."
The first proposal, the so-called "income security plan," would raise the insurance premium rate from the current 9% to 13%, while increasing the income replacement rate from the current 40% to 50%.
The second plan, the “Financial Stabilization Plan,” would raise the insurance premium rate to 12% and maintain the income replacement rate at 40%. According to financial estimates submitted to the National Assembly by the Ministry of Health and Welfare, the National Pension Fund
The point at which the tax is exhausted (currently 2055) is calculated to be six years longer at 2061 under the first plan, and seven years longer at 2062 under the second plan.
Yasu said, "The proposal I voted for was not 'income security proposal vs. fiscal stability proposal,' but 'what?'
"The difference between the majority and minority proposals is only small, and the plan has been transformed from a plan that would bankrupt the pension system into a plan to guarantee income," he argued.
He continued, "The pensions of the baby boom generation, of which 1 million people were born, cannot be managed by the generations in their 20s and 30s and the future generations, who will have fewer than 200,000 children born due to the declining birthrate.
"We must not place the burden of the private pension debt bomb on people in their 20s and 30s," he said. He also said, "For the sake of future generations, I would like to propose switching to a 'Swedish-style defined contribution' system."
The Swedish defined contribution pension system is a "pay-as-you-go" pension system in which individuals receive a pension equal to the amount of insurance premiums they have paid plus a certain level of interest.
Yasu also said, "I propose a unified pension system that will unify the special occupational pensions of civil servants, teachers, etc. and the national pension. The system of continuing to pour only taxpayers' money into special occupational pensions is unsustainable.
"Pension reform and special occupational pension reform must go hand in hand."