The South Korean government is planning to convert special employment workers to workplace subscribers of the national pension and is considering raising the enrollment age from below 60 in an effort to reduce blind spots in the system.
The South Korean government has officially reported to the National Assembly regarding strategies to address blind spots in the national pension system, particularly for special employment workers. The special committee on pension reform announced plans to convert currently categorized local subscribers—such as delivery workers and door-to-door salespeople—into workplace subscribers. This transition aims to lessen the financial burden on these workers, as workplace subscribers share their pension contributions with their employers, unlike local subscribers who pay all fees themselves.
As of June 2023, there are over 1.03 million special employment workers, with about 478,000 of them categorized as local subscribers. The Minister of Health and Welfare, Jeong Eun-kyeong, emphasized the need to collaborate with the Ministry of Labor to find effective expansion methods for pension enrollment support for low-income local subscribers. Moreover, the government is also considering raising the mandatory enrollment age for the national pension, which is currently below 60 years, in order to align it with other policies, such as extending the retirement age, which aims to address income gaps that arise from earlier retirement.
However, experts caution that raising the mandatory enrollment age could impose additional financial stress on the pension fund. The government acknowledges that while higher enrollment can stabilize the pension fund in the long term, it may encounter immediate financial pressures as the benefit payout remains significant. Therefore, they are closely examining the relationship between the proposed changes and existing support measures to ensure a sustainable pension system for future generations.
