[Open World] One Year after the Third Pension Reform: Time to Prepare for What Comes Next (April 28, 2026)

(The Pension Future Forum 

hereby states that it holds a position that differs from the Open World column

by former First Vice Minister of Health and Welfare Lee Ki-il,

which it carries in its expert-column section

within the Insights category.

We are posting it on the website first for the purpose of content comparison.)

 

A full year has now passed since the Third Pension Reform came to fruition. Last month, the author met with Kim Sang-gyun, Chair of the National Assembly's Public Deliberation Committee, along with its civilian co-chair and others who had played major roles in the reform, to share reflections on the experience. At that gathering, the remark that "this reform was accomplished not by human effort but as a gift of heaven" drew nods of agreement from all present.

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In retrospect, the starting point of change was the Public Deliberation Committee, which generated a broad societal discourse. The government's Fifth Comprehensive Operation Plan, submitted to the National Assembly in 2023, contained a variety of proposals, yet deliberations failed to advance.

To break the impasse, the National Assembly established a Public Deliberation Committee under the Special Committee on Pension Reform (chaired by Joo Ho-young).

For the Public Deliberation Committee, 500 citizen representatives—dubbed "a miniature Republic of Korea"—were selected and, over a three-month deliberative process, produced a contribution-rate 12% / income-replacement-rate 40% proposal (the fiscal-stability position) and a contribution-rate 13% / income-replacement-rate 50% proposal (the income-security position).

Of these, the latter garnered 56.0% support.

In particular, the contribution-rate 13% proposal, forged through societal discourse, became the point of departure for the subsequent reform debate and served as powerful momentum for breaching the wall of the dreaded double digits—the 10% threshold.

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The decisive moment came during an interregnum of power. As Bismarck put it, the god of destiny sweeps past, brushing against one's coattails—and so a window of opportunity opened. Just as the overhaul of the health-insurance contribution-assessment system, repeatedly deferred on the grounds that it would raise contributions for some of the insured, finally passed the National Assembly in March 2017, this pension reform traced a similar trajectory. 

From early 2025, societal debate revived, and although the ruling and opposition parties pursued differing aims, a dramatic agreement was reached under the mediation of National Assembly Speaker Woo Won-shik.

On March 20 of that year, the contribution-rate 13% / income-replacement-rate 43% proposal passed the plenary session and was promulgated on April 2.

The Third Pension Reform is a reform only half accomplished. The younger generation harbors considerable discontent. The need for further reform is clear, yet, now that the thirst has been slaked for the moment, it will not be easy to rally momentum again. Because crisis arrives like a thief in the night, however, we must prepare for a Fourth Reform.

In closing, the author offers thanks: to the public and the press who supported the reform; to the Public Deliberation Committee and the pension experts who opened the channels of debate; to the National Assembly and the ruling and opposition parties for their political resolve; and to the government, including the Ministry of Health and Welfare staff who lent their strength on the ground.

This pension reform was not the victory of any one party but an achievement created by all of us together—and for that reason, everyone is a winner.

https://n.news.naver.com/article/081/0003639222?sid=110