KARP Calls for Structural Reform of Basic Pension System

The Korean Association of Retired Persons (KARP), led by President Juch Myong-Yong, held 

a resolution meeting on April 7 at its auditorium in Gwangjang-dong, Gwangjin-gu, Seoul, 

calling for structural reform of the basic pension system and adopting an official statement.

In the statement released that day, the association emphasized that discussions on the 

current basic pension should move beyond simply expanding benefit amounts, and instead

focus on a comprehensive redesign that ensures both sustainability and equity.

According to the statement presented by President Juch, the number of basic pension beneficiaries has already exceeded 7 million, while the system—fully funded by tax 

revenues—is placing a rapidly increasing burden on public finances. The Korea 

Development Institute (KDI) projects that, if the current system is maintained, total 

expenditures could reach 46 trillion won

by 2050. Against this backdrop, KARP pointed out that the current “broad but shallow” distribution approach has clear limitations in both protecting vulnerable groups and 

maintaining fiscal stability.

The association proposed a dual-structure reform principle that combines “targeted 

protection for the poor” with “guaranteed basic dignity for all seniors.” Under this 

framework, low-income seniors would receive substantial support of 500,000 to 600,000 

won per month, while the rest of the elderly population would receive a symbolic 

basic pension.

As a key reform measure, KARP suggested raising the eligibility age. If the current 

eligibility age of 65 is gradually increased to 70, up to 3.5 million individuals could be

excluded from the program, significantly easing fiscal pressure. The association noted that,

under such adjustments, most reform scenarios could be managed within the expenditure 

range projected by KDI.

KARP presented four policy scenarios:

▶500,000 won per month for the bottom 20% income group, 

  and 50,000 won for the remaining 80%

▶500,000 won for the bottom 20%, and 100,000 won for others

▶600,000 won for the bottom 30%, and 50,000 won for others

▶600,000 won for the bottom 30%, and 100,000 won for others

In addition, the association called for the abolition of inequitable elements in the current 

system, such as benefit reductions for married couples and deductions linked to 

other pension schemes.