South Korean President orders fix for pension loopholes amid foreign subscriber controversy

South Korean President Lee Jae-myung has ordered a rapid review and correction of any identified gaps in the National Pension system, emphasizing the need for swift action to address emerging issues. His remarks came during a State Council meeting on Tuesday, where he acknowledged that systems, by their nature, can develop imperfections.

"When gaps are discovered, swift and thorough補完 (bogwan - supplementation/correction) is necessary," President Lee stated. He stressed that self-assessment alone is insufficient, and continuous monitoring of the system's implementation in the field is crucial to identify and rectify problems.

“

When gaps are discovered, swift and thorough補完 (bogwan - supplementation/correction) is necessary.

The president's directive was prompted by recent controversies surrounding foreign nationals who have used the deferred payment option for their National Pension contributions. Reports indicate that some individuals have joined the pension system for a short period, then made deferred payments for the remaining months to quickly meet the 10-year contribution requirement for receiving old-age pensions. This practice has raised concerns that the deferred payment system, originally designed to support those facing income gaps, such as women who have taken career breaks, is being exploited in ways contrary to its intended purpose.

“

Self-assessment alone is insufficient, and continuous monitoring of the system's implementation in the field is crucial to identify and rectify problems.

Critics argue that the focus should not be on restricting foreign participation in the pension system itself, but rather on revising the deferred payment mechanism to prevent its misuse for early pension eligibility. The debate highlights a tension between ensuring broad access to social security and safeguarding the system's integrity and financial sustainability.

In a separate but related matter, President Lee also urged for a swift conclusion on the issue of lowering the age threshold for juvenile offenders. He indicated that the scope for adjustment is narrow, likely within one or two years, and called for a public opinion screening before legislative action is taken to address serious and repeated offenses.

“

The scope is defined, and within a range of one or two years, for serious repeated offenses, we should screen the public's opinion on lowering it and finalize legislation early.