(December 2013 Column) The Government Employees Pension: A "Time Bomb"

"The reform is far too weak. It seems likely that problems will emerge within five years. This is the candid assessment of someone who lives and breathes pension policy."

This is a statement the author made as a witness at the National Assembly public hearing on the Government Employees Pension in December 2008. It was an assessment of the government's reform proposal, which — compared to the reform plan recommended by the expert-led committee — would pay 35% more in pension benefits (based on newly hired civil servants) while collecting 17% less in contributions (based on incumbent employees). Five years have since passed. The deficit subsidy for the Government Employees Pension under the Lee Myung-bak administration amounted to 7.77 trillion won, and under the Park Geun-hye administration it is projected to reach 15 trillion won. In the early 2020s, the annual deficit subsidy alone is forecast to exceed 8 trillion won. The problem is that the subsidy amount grows larger with each passing year.

https://www.joongang.co.kr/article/13385351