The South Korean government, in conjunction with the ruling Democratic Party, is exploring reforms to the basic pension system currently provided to 70% of low-income seniors. With the elderly population exceeding 10 million and projections indicating that the number of beneficiaries will reach 7.79 million by 2026, there is growing concern about the financial sustainability of the current system. Nam In-soon, chair of the special committee on pension reform, emphasized the need to clarify the function of the basic pension and systematically redesign its relationship with the basic livelihood security and national pension systems to address these emerging challenges.

During a committee meeting held on the 25th, discussions included the possibility of implementing differential payments based on income levels or reducing the eligibility criteria for the basic pension. Lawmaker Oh Gi-hyung noted the importance of not adversely affecting existing beneficiaries while advocating for a gradual transition to any new system. This would involve traditional simulations and societal consensus on whether to narrow the eligibility or adopt a structure that supports lower-income individuals while reducing benefits for those with higher incomes.

The basic pension was introduced in 2014 to ensure the financial stability of low-income seniors, providing up to approximately 349,700 won per month for individuals with an income below 2.47 million won. However, there have been rising concerns about middle-class seniors also receiving these benefits, placing additional strain on government finances. The government aims to finalize its reform proposal for the basic pension system by the end of this year for submission to the National Assembly.