This episode explores Korea's demographic emergency and the recent pension reform designed to address it. Against the backdrop of Korea officially becoming a super-aged society in late 2024, with over 20% of its population aged 65 or older, the podcast details the landmark pension reform bill passed by the National Assembly. This reform, the first major change in 18 years, aims to improve the pension fund's financial sustainability by raising contribution rates and adjusting the income replacement ratio, delaying fund depletion to 2064-2071 (from 2055 without reform). More significantly, the reform demonstrates bipartisan support and public consensus amidst recent political turbulence. However, higher contributions may negatively impact household disposable income and consumption. Despite these challenges, a recent rebound in the fertility rate offers cautious optimism, although further adjustments to the pension bill and labor market reforms are anticipated. This signifies the Korean government's commitment to a broader demographic policy agenda, including pension, labor, education, and capital market reforms.
