South Korea: Immature pension system: Poverty problem for the elderly
-Understanding with “Parasitic”-
Parasite Semi-Underground Family:
A movie that won an Academy Award for work in 2019.
“Parasite Semi-Underground Family” was broadcast in Japan on Friday, January 8th at the TV Road Show.
Korea’s inequality society:
This work attracted a lot of attention as a work depicting the actual situation of the disparity society and the poor in South Korea.
In fact, there are many social issues that could not be drawn in the movie.
Korean pension system:
One of them is the poverty problem of the elderly and the immature pension system.
Organization for Economic Co-operation and Development (OECD):
In South Korea, the ratio of self-employed people to all workers is high at 24.6%.
It is the eighth highest among the 36 member countries.
By the way, Japan is 10% (28th), and the ratio of self-employed people is low.
Korea National Tax Service:
According to 2020 national tax statistics
About 1.17 million people are newly registered as self-employed in 2019.
However, at the same time, about 840,000 people are out of business.
Korean Elderly Employment Law:
The company is obliged to gradually increase the retirement age to 60 years or older from 2016.
However, looking at the statistics, “the number of early retirees is increasing rather than decreasing.”
Excluding public companies and large companies with unions, the average retirement age is around the early 50s.
On the other hand, the age at which pension benefits begin is currently 62 years old.
It is difficult to live on savings alone for the previous 10 years.
Korean national pension (old-age pension):
The average amount paid in 2019 is only 519,000 won (49,000 yen).
Even “a complete old-age pensioner who has paid pension insurance premiums for 20 years or more” costs 927,000 won (88,000 yen).
It is difficult to “live a satisfying life with this alone”.
Korean national pension participation rate:
In 2018, there is a difference of 66.1% for women compared to 75.2% for men.
National pension participation rate of self-employed people:
In 2018, the “self-employed national pension participation rate” was only 56.3%.
In the case of non-regular workers, it is even lower, at 42.8%, which is less than half.
Pension payments for spouse:
Japan’s national pension has a “third insured person’s system”.
In Japan’s national pension, an additional pension is paid to the spouse of the insured.
There is no such compassion system in Korea.
“Expanded unemployment rate” in South Korea’s 20s:
The unemployment rate, including those who have given up on employment and those who are looking for a job while working part-time.
The “extended unemployment rate” in South Korea’s 20s is over 20%.
If nothing is done, asset formation in old age will not be sufficient.
Hyundai Business | Kodansha