Park calls for parliamentary endorsement of pension reform bill

President Park Geun-hye on Wednesday called for parliamentary endorsement of a bill meant to reform the pension system for civil servants in the latest appeal to reduce the government's growing pension deficit.

She asked civil servants to make concessions and sacrifices for future generations and the country, noting the pension deficit is feared to snowball in coming years unless the pension plan is reformed.

"We must (reform the pension) with a sense of urgency as we could leave the country and future generations a large debt and the pension system itself could go bust" if the pension deficit is left unaddressed, Park said in a nationally televised address at the National Assembly.

"I ask for parliament's support to ensure that the public servants' pension reform bill is passed by the end of this year."

The case for pension reform has gained urgency as the increasing average life expectancy for Koreans could further deepen the pension deficit. The average life expectancy for Koreans stands at 81 in 2012, up nearly 30 years from 1960 when the pension system was first drawn up.

South Korea has faced the looming crisis as previous governments delayed addressing the issue of pensions for civil servants, despite being aware for decades that the current pension plan is not sustainable.

Park's speech came two days after her ruling Saenuri Party unveiled a set of measures to delay eligibility for public servants' pension to 65 from 60, starting in 2031, and to raise the proportion of contributions from 7 percent of income to 10 percent.

The unions that represent the interests of civil servants vowed to stage a massive rally in western Seoul on Nov. 1 to protest the proposed pension reform.

Meanwhile, Park vowed to make efforts to quickly clinch free trade deals with China, New Zealand and Vietnam, saying a free trade deal is a strong foothold in increasing South Korea's exports and expanding foreign investments.

She also asked the parliament to ratify two separate free trade deals signed with Australia and Canada.

"Now, it is an issue that runs against the clock," Park said in a meeting with leaders of the ruling and opposition parties at the National Assembly after the speech.

She devoted her address to pushing the National Assembly to pass a string of bills meant to revitalize Asia's fourth-largest economy and to lift unnecessary business regulations.

She has described unnecessary business restrictions as "our archenemy" and a "cancer."

"This is the last golden opportunity to boost the economy," Park said.

The government submitted a 376 trillion won (US$361 billion) budget for next year, up 5.7 percent from this year. By law, the parliament is required to pass a bill on next year's budget by the Dec. 2 legal deadline.

Park's address to the National Assembly marked the second time for her to make a budget speech in person since taking office earlier last year.

Her predecessors addressed the parliament only three times. In other cases, presidents had their prime ministers read addresses on their behalf. (Yonhap)