South Korean President Calls for Urgent Pension Reform

South Korean President Yoon Suk Yeol emphasizes the need for urgent reform of the national pension fund, one of the world's largest with $830 billion in assets, to ensure income security for an ageing population. He also plans ambitious healthcare reforms, prompting objections from doctors.

South Korean President Yoon Suk Yeol emphasized the urgency of reforming the national pension fund, one of the world's largest with $830 billion in assets, during a televised briefing on Thursday. The move aims to restore confidence and ensure income security for an ageing population.

Yoon noted that both the elderly and the youth have lost faith in the current pension system. To make the fund sustainable and equitable, he proposed increasing contributions and differentiating them by age group. He stressed the need for a pension system that does not leave the elderly poor or young people disillusioned.

The national pension fund, established in 1988, is projected to be exhausted by 2055 as withdrawals begin to exceed contributions from 2041. Yoon's proposed reforms come after years of stagnation on the issue due to conflicting views on how to address it.

In addition to pension reforms, Yoon announced a significant investment in healthcare, focusing on improving medical services in essential disciplines and regions outside large cities. However, his plan to increase the number of new medical students has faced strong opposition from doctors, leading to strikes that disrupted hospital services in February.

(With inputs from agencies.)