NPS President: "Politicization Controversy Is Unfounded… We Will Create a System Free of Concern Over Fund Depletion" (January 29, 2026)
- #연금특위
(Following the KBS article below, we will post an approximately 12-minute KBS YouTube broadcast explaining the concept of the automatic adjustment mechanism. The concept of the automatic adjustment mechanism is explained from approximately the 9-minute mark of that video.
If one has properly understood this concept, it will become apparent that the statement made yesterday by NPS President Kim Sung-joo— "Given the high rate of elderly poverty, the introduction of an automatic adjustment mechanism should be approached with caution"—was made on the basis of a misunderstanding of the concept of the automatic adjustment mechanism.
Regarding the substance of President Kim Sung-joo's press conference yesterday, the Pension Future Forum will issue its formal position at the earliest possible opportunity.)
Kim Sung-joo, President of the National Pension Service (NPS), dismissed criticism that the pension fund is being used to support domestic equity markets or to defend the exchange rate, calling concerns about "politicization" unfounded.
At a New Year's press briefing held today (the 29th), President Kim stated: "I can say with confidence that the fund is currently managed in a stable and independent manner, free from interference by anyone," and "the pension fund has nothing to do with politics."
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President Kim, following last year's pension reform—the first in 18 years—emphasized that he intends to create a system that is free of concern over fund depletion through the end of the twenty-first century, through additional parametric and structural reform, improvement of investment returns, and early injection of government funds.
In particular, as a measure for fiscal stabilization, President Kim noted that "if the retirement age is raised, the period of pension contribution payment will naturally be extended as well," adding that"if raising the retirement age leads to an increase in the mandatory enrollment age and subsequent adjustment of the statutory definition of old age, it could constitute the most significant parametric reform measure of all."
Regarding the introduction of an automatic adjustment mechanism—whereby the contribution rate would be adjusted automatically in accordance with demographic and economic conditions—President Kim indicated that a cautious approach is warranted, given that the rate of old-age poverty in South Korea currently ranks among the highest of OECD member countries.
