Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Yoon vows to push ahead with pension, medical reforms
President Yoon Suk Yeol looks at reporters raising their hands to ask questions during a press conference at the presidential office in Seoul, Thursday. Yonhap
By Anna J. Park
'S. Korea-US-Japan trilateral cooperation to be maintained'
President Yoon Suk Yeol expressed his strong commitment to reforming the national pension system to ensure the fund's sustainability, so citizens can receive their pensions without concerns about depletion.
He also reaffirmed his pledge to increase the number of doctors and overhaul the nation’s medical system to ensure access to medical services in non-capital regions, despite a protracted standoff with doctors over the government’s plan to raise medical school admissions quotas.
In his rare public briefing and press conference, Thursday, the president said the national pension system requires fundamental structural changes. He explained that it currently fails to provide sufficient income replacement for retirees, while younger Koreans worry they may not receive any benefits, given the government's forecast that the fund could be depleted by 2055.
“The government is committed to restoring trust in the national pension system through sustainable, long-term reforms,” Yoon stated during the press conference at the presidential office in central Seoul. “In addition to adjusting variables like premiums and income replacement rates, we need to enhance the fund’s investment returns and introduce automatic stabilizing mechanisms to secure the pension’s long-term viability."
Earlier this year, the rival parties discussed increasing the pension premium from 9 percent to 13 percent of one's income. But they disagreed on the income replacement rate, which is the pension as a percentage of a subscriber's average lifetime income. The current rate is 40 percent, with proposals to raise it to between 44 and 45 percent.
Yoon did not elaborate on the specific levels for the premium and income replacement rate, but he indicated that the government will soon present a detailed proposal.
The president further emphasized the need for reforms tailored to younger workers, who contribute the most and receive benefits the latest. He advocated for differentiated premium increases between younger and middle-aged generations.
“We need to legally guarantee the state’s obligation to provide pensions, to reassure younger generations that they will also receive benefits.”
President Yoon Suk Yeol speaks during a press briefing at the presidential office in Seoul, Thursday. Yonhap
Strengthening regional medical system
The president also addressed health care reform, emphasizing that the primary goal of the current administration is to strengthen regional and essential medical systems. He noted that the government aims to ensure fair and equal access to health care across the country, particularly in non-capital, rural areas.
"With the increase in medical school admissions for next year confirmed, the government will now focus its policy efforts on revitalizing regional and essential health care services," Yoon said.
Despite strong opposition and months of walkouts by medical professionals concerning the multi-year plan to expand medical school admissions, Yoon emphasized that the government will not yield to such pressure.
"Training medical professionals will take at least 10 to 15 years. If we do not act now, Korea is projected to face a shortage of 15,000 doctors by 2035 ... Therefore, this step is unavoidable," Yoon explained.
"The government will focus on producing more highly-skilled doctors by advancing medical education and reforming the training system. Additionally, we will strengthen regional health care infrastructure," the president said.
He also pledged to overhaul the medical insurance system by significantly improving fees for essential and regional medical services.
To effectively implement the medical reform, Yoon announced plans to invest at least 10 trillion won ($7.5 billion) over the next five years.
President Yoon Suk Yeol speaks during a press briefing at the presidential office in Seoul, Thursday. Yonhap
Regarding Korea's ongoing problem with low birthrates, Yoon highlighted the urgent need for a fundamental shift in the country's overly competitive culture and socioeconomic framework.
"The culture of unnecessary and excessive competition is a core issue driving the population decline. Balanced regional development to address the concentration in metropolitan areas can be a fundamental solution to this problem," Yoon stated. "To attract people and businesses to the provinces, living conditions must improve. In enhancing the conditions, high-quality education and health care services (in the provinces) are the keys," he added, highlighting that all reform priorities are interconnected to addressing the country’s long-standing challenges.
He noted that the country’s low birthrate policies will be completely re-evaluated, with new programs designed to take into account beneficiaries' preferences, the impact of the policies, and their long-term sustainability.
Journalists and presidential office staff attend President Yoon Suk Yeol's press conference at the presidential office in Seoul, Thursday. Yonhap
Trilateral cooperation in diplomacy
When asked if he believes the U.S. stance on the denuclearization of the Korean Peninsula is shifting — especially since both the Democratic and Republican parties have excluded denuclearization from their upcoming presidential election pledges — and whether this might influence the South Korean government’s stance on nuclear armament, Yoon responded that he does not believe Washington will tolerate North Korea’s nuclearization.
"I do not believe the U.S. would ever tolerate North Korea’s nuclearization or accept violations of the Non-Proliferation Treaty (NPT) framework," the president said. "Such a stance would contradict the U.S.' historical position and strategy. Allowing these violations would mean lifting United Nations Security Council sanctions related to illegal nuclear development, which would undermine the global NPT system and increase nuclear threats in Northeast Asia. Therefore, I do not see this happening."
He noted that the mutual alliance between South Korea and the U.S. has become increasingly robust, as it is being upgraded and effectively integrated to counter North Korean threats. The president also mentioned that the Camp David cooperation framework, established a year ago between South Korea, the U.S., and Japan, will continue to be upheld regardless of changes in the leadership of the three countries, since this framework is essential for the stability of the Indo-Pacific region and global economic security.