(2015) Pension Reform: Removing a 333-Trillion-Won Lump Only to Add a 1,669-Trillion-Won One

Moon Hyung-pyo, the Minister of Health and Welfare, visited party leader Kim that day, just before the ruling and opposition parties signed their joint agreement, stating: "Raising the National Pension's income replacement rate to 50%, as set out in the agreement, would only be possible by raising the contribution rate to 18% — double the current 9%. Are you confident that you can double the contribution rate? If you cannot, this becomes populism." The income replacement rate refers to the ratio of old-age pension benefits to the average monthly earnings during the period in which pension contributions were paid. For example, if monthly income is 2 million won, an income replacement rate of 50% means the resulting pension would amount to 1 million won.

https://www.joongang.co.kr/article/17726922