Korea Pension Reform Stalls as NPS Reserves Swell to 1,800 Trillion Won
Updated
Updated · 코리아타임스 · Jun 17
Korea Pension Reform Stalls as NPS Reserves Swell to 1,800 Trillion Won
2 articles · Updated · 코리아타임스 · Jun 17
Summary
1,800 trillion won in estimated NPS reserves by May has cooled momentum for further pension reform, after the fund climbed from 1,036 trillion won at end-2023 to 1,458 trillion won at end-2025.
18.82% record returns in 2025 and a KOSPI rally that led G20 markets drove the surge, with one former pension association chief saying a 5.5% average annual return could delay depletion to 2095 from 2071.
March legislation had already raised the contribution rate gradually to 13% from 9% and lifted benefits to 43% of preretirement income, but the National Assembly advisory panel finished its work last month and debate has since faded.
15% of GDP in public pension spending within about 60 years remains the long-term warning from experts, who say market-driven unrealized gains are masking structural risks from low birthrates and rapid aging.