President Lee Criticizes Foreigners' Pension Controversy, Saying Eligibility for Retroactive Contributions Is Itself Contradictory

[Financial News] On the 25th, President Lee Jae Myung said that the controversy over foreigners receiving pensions through retroactive contributions to the National Pension Service (NPS) was contradictory, noting that "the fact that foreigners who have stayed in Korea only briefly can qualify for retroactive contributions is itself a contradiction."
At a closed-door State Council meeting held that day at Cheong Wa Dae, Lee made the remark after receiving a report from Health and Welfare Minister Jeong Eun-kyeong on the current status of foreign retroactive NPS contributions and possible improvements, Chief Presidential Spokesperson Kang Yoo-jung said.
Lee urged Jeong to view the issue from the public's perspective and consider whether eligibility requirements, including the period of actual residence in Korea, need to be tightened urgently.
In his opening remarks, Lee also said, "There has been some recent discussion about foreign pensions. The important thing is that no system can be perfect when it is designed, so loopholes will emerge. Efforts to eliminate those gaps are of course important, but once a loophole is found, it is necessary to fix it as quickly as possible."
He added, "To do that, we cannot fully catch every problem through internal checks alone, so we must constantly examine the problems that arise during implementation in the field."
Lee said, "Problems can arise in all other policy areas as well. What really matters is how quickly and thoroughly we correct those problems and come up with alternatives when they do arise." He added, "I hope this can serve as a lesson for other policy areas too."
Meanwhile, criticism has been growing that the retroactive contribution system is being abused as a way for foreigners to receive pensions after cases were confirmed in which foreigners worked in Korea for just one month, paid a lump sum for past contribution periods, and then received old-age pensions every month for life. Retroactive contributions allow people to pay premiums later for periods when they were exempt from payment due to unemployment or business suspension, or for periods when their enrollment history was interrupted by marriage or childbirth.
At the same State Council meeting, Lee also praised a report prepared by the Ministry of Land, Infrastructure and Transport on the integration of high-speed rail services that would change everyday life, saying, "A major issue that had not been resolved for more than a decade was integrated faster than expected."
However, Lee also said that while KTX fares fell by about 10% on average after the integration with SRT following a decision by the Korea Fair Trade Commission (KFTC), the impact of rising railway operating deficits must also be considered. Kang said Lee instructed officials to review measures for transportation polarization, warning that if lower fares draw more KTX passengers, express buses and long-distance intercity buses could disappear.

[email protected] Choi Jong-geun Reporter