"The Old and New Pension Systems Must Be Separated… The 1,700 Trillion Won Fiscal Burden Is an Overestimate" [Policy & People] (January 18, 2026)

While acknowledging the constraints of political reality, the representative articulated a clear vision for pension reform—one of the most prominent intergenerational equity issues—centered on the separation of the old and new pension systems. This proposal had previously been examined under the former Yoon Suk-yeol administration, only to be shelved on the grounds that the fiscal burden would reach 1,700 trillion won and was therefore excessive. However, the representative maintains that the required public expenditure was overestimated at the time, and that if a sufficiently detailed long-term plan is formulated, the proposal is entirely feasible.

The representative stated: "There are reports that the National Pension's depletion date has been pushed back by several years due to favorable returns in the domestic equity market—but that is not what matters. The real problem is that the system is becoming structurally unsound." The representative continued: "The reason the old and new pension systems must be separated is straightforward: the current system was built on the premise of a sustained high-growth era and designed with low contributions and high benefits, so it must be changed." The representative further elaborated: "In the course of transitioning the pension system, there is a possibility that several hundred trillion won in costs will need to be borne. From the perspective of the younger generation, if the burden is going to be passed on to them regardless, it would be better to proceed quickly so that the burden can be shared while the generation receiving the old pension is still in the workforce." The representative emphasized: "I regard the 1,700 trillion won burden as an overestimate, and what needs to be done is to start injecting tax revenues early."

The representative added: "The starting point is to use the 20 trillion won Basic Pension to begin filling the gap left by the old pension's insolvency, and then to inject tax revenues in a planned manner over several decades until the new pension becomes established." Elaborating further, the representative noted: "Even if the new pension is applied immediately to those in their twenties, it will take 40 years before it is fully settled—in the sense that the first beneficiaries would begin receiving benefits. Rather than rushing, we should consider how to inject tax revenues over those 40 years to prevent insolvency."

https://n.news.naver.com/article/014/0005464469?sid=100