[In-Depth Diagnosis] Basic Pension Reform Reworking the “Payment Criterion” Nears Announcement… “Give It and Take It Back”: Basic Livelihood Recipients Push Back (2026.08.26. )

■ Today’s Economic Scene, “In-Depth Diagnosis”

- Yoon Seok-myung, Research Fellow Emeritus, Korea Institute for Health and Social Affairs,

- Oh Gun-ho, Representative, Welfare State I Make 

There is a great deal of controversy over the Basic Pension, which is paid to the bottom 70% by income among those aged 65 and over.

Because it is paid uniformly up to 70%, people with quite high incomes receive it as well; cutting each amount by 20% simply because a couple receives it together feels harsh; and for older people receiving the livelihood benefit under the National Basic Living Security scheme, the Basic Pension is deducted from that benefit, so receiving it is meaningless.

As controversy and dissatisfaction over the Basic Pension have grown, the government has decided to put forward a reform proposal before long. We will discuss with our two guests how it should be changed.

We are joined by Yoon Seok-myung, Research Fellow Emeritus at the Korea Institute for Health and Social Affairs, and Oh Gun-ho, Representative of Welfare State I Make. 

Q. The controversy over foreigners receiving the National Pension. Working for just one month, paying arrears, and then receiving benefits for life. President Lee Jae-myung has called for a swift alternative. Why is this possible? 

Q. What is the current situation of foreigners receiving the National Pension in Korea? Why do Chinese nationals take the most in National Pension benefits? 

Q. In Korea, by contrast, 9 million older people receive a pension — 9 out of 10 older people receive one, but half receive less than 500,000 won a month. Q. The government is discussing a plan to move away from fixing Basic Pension (349,700 won) eligibility at the bottom 70% of older people and instead to set it on the basis of the living standards of the population as a whole — the standard median income.

To what extent has the basic direction been settled? 

Q. Is the key what percentage of the standard median income will be covered? (Compared with the present… 96%) 

Q. For older people receiving the livelihood benefit under the National Basic Living Security scheme, an increase in the Basic Pension is meaningless. There is much criticism that it is a “pension that gives and takes back.” 

Q. The amount of Basic Pension reduced on the ground that the recipient receives the National Pension has tripled in the past four years, exceeding 80 billion won last year. Does this not weaken the incentive to enroll in the National Pension and trust in the system? 

Q. How should the government pursue the Basic Pension, which affects 8 million people? 

(For details, please watch the video.)