The South Korean government is considering gradually making it mandatory for all workplaces to provide retirement pension systems instead of paying retirement allowances, and is considering establishing a national retirement pension corporation to raise the rate of return on retirement pensions.
It was revealed on the 24th that the Ministry of Employment and Labor had recently submitted such a proposal to improve the retirement pension system to the National Planning Committee. As of the end of last year, the reserve fund was 431 trillion won (about 46
The retirement pension, which has exceeded 1 trillion yen, is expected to exceed the size of the national pension by 2050. Currently, the retirement allowance system in Korea is divided into a retirement pension and a retirement allowance system. The Korean government is
Instead of retirement benefits, which are at high risk of being overpaid, the government is encouraging people to switch to retirement pensions. If people receive these as long-term pensions in their old age, it will help solve the problem of poverty among the elderly.
The Ministry of Employment and Labor is promoting the mandatory provision of retirement pensions, but has decided to make it mandatory for a short period of time, as it believes that small and medium-sized businesses will face difficulties.
The government is considering implementing the measure in five stages, such as for those with 20 to 299 employees, those with 30 to 99 employees, those with 5 to 29 employees, and those with less than 5 employees.
The Ministry of Employment and Labor has decided to amend the law to allow workers who have worked for three months to receive the benefit, citing the need to "strengthen the social safety net and protect the vulnerable in the labor market."
The report also includes a proposal to enact legislation in 2028 after analyzing the results of the investigation and holding dialogue with the public. In this case, the government will take measures such as "splitting" employees, such as firing them after 11 months of work without giving them severance pay.
It is expected that the number of "contract workers" will decrease and the health of employment will improve. However, there is a blind spot in that retirement benefits must be paid to virtually all workers, including short-term part-time workers.
This not only significantly increases the financial burden on companies, but also raises concerns that it could lead to an increase in working patterns in which employees only receive retirement benefits and repeatedly change jobs.
The Ministry of Employment and Labor also recognizes this, stating in its business report that "the legal nature of severance pay and the economic burden on small businesses are issues of contention.
"It is essential to reach a social consensus, including efforts to persuade companies," he added.
2025/06/25 07:15 KST
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