Among most pressing national issues, such as reforms to the labor, medical and educational systems, there is one area where both the ruling and opposition parties share a broad consensus: national pension reform. Given the intense partisan fighting that has characterized the current 22nd National Assembly launched following the April general elections in 2024, the apparent bipartisan push for pension reform almost seems like a refreshing development. It reflects a growing consensus that the national pension fund, which was launched in 1988, needs to be updated to ensure both current and future recipients receive adequate postretirement benefits.

Last year, the ruling conservative People Power Party (PPP) and the main opposition progressive Democratic Party of Korea (DPK) agreed to raise the contribution rate from the current 9 percent to 13 percent in order to prevent further deficits and the premature depletion of the fund that provides income security for many retirees. The legislators and government officials who met last week said they remain on the same page regarding the contribution rate hike to 13 percent. The income replacement rate is where the two parties differ, but only by a relatively small margin of 1 percentage point, leaving the public wondering whether they are sincere about reform. The PPP wants the income replacement rate set at 43 percent, while the DPK is advocating for 44 percent.

Various government fiscal projections have shown that the ruling party's proposal to raise the income replacement rate to 43 percent, and the opposition's proposal of 44 percent, would not necessarily lead to a significant difference in delaying the depletion of the national pension fund. There is criticism over whether the best solution is this "pay more to receive more" plan — hiking pension premiums to 13 percent and pensions reaching about 44 percent of former income. Timing is of the essence, and the two parties would be wise to start with where they agree, building their efforts toward more complex structural reforms.

Korea's rapidly aging society and declining birthrate are among the main factors driving the need for pension reform. According to the latest long-term fiscal forecast released Sunday by the National Assembly Budget Office, Korea's national pension fund is expected to be depleted by 2057. Daily estimates suggest the fund is accruing 88.5 billion won ($61 million) in debt per day and 32 trillion won annually under the current scheme. Many point to the lack of government leadership due to President Yoon Suk Yeol's bizarre martial law declaration late last year and his subsequent impeachment trial, which has, ironically, created a golden opportunity for reform. With the possibility of an early presidential election as soon as May, there is a strong case for reaching an agreement before the extra National Assembly session ends on March 4.

Both sides are blaming each other for lacking sincerity in the pension reform issue. Ideally, shifting blame and flip-flopping on stances in policy-making or legislative work should be kept in check to some extent. The new reality in Korean politics, however, seems to be more about fighting for virtually every small gain. In this process, one can't help but wonder if people are losing sight of the bigger, more vital goals of delivering better policies for the public.

To its credit, the government and the Assembly have made significant progress toward an agreement on the pension issue by starting with the relatively easier task of revising the contribution and income replacement rates. It's important to be prudent and build on this as future work on the issue progresses. A modest start is not a bad one. Related representatives are expected to meet again today, possibly with better news to come out of it.