Politics · South Korea · 33 mins ago
84만 South Koreans had basic pensions reduced because they received national pensions
South Korea reduced the basic pensions of 842,000 people in 2025 because they also received national pensions.
The rule, introduced in 2014, cuts basic pension payments when a person’s national pension is above a set threshold, with the cut linked to their contribution history.
The number affected more than doubled from 389,000 in 2021, while the total reductions over five years reached 2.8293 trillion won.
More than four in five affected people received 1 million won or less a month from the national pension, and nearly half received 700,000 won or less.
In 2025, their basic pension was reduced by an average of 96,000 won a month, leaving an average payment of 214,000 won.
The figures have renewed concerns that the rule penalizes people who paid into the national pension and reduces support for lower-income older people.
A lawmaker called for an analysis of the cuts by income bracket and a review of their effect on retirement income; no policy change is stated.
South Korea reduced basic pension payments for 842,000 people in 2025 because they also received a national pension.
The reductions totaled 892.5 billion won in 2025 and 2.8293 trillion won over the five years from 2021 to 2025.
Among those affected in 2025, 80.5% received a national pension of 1 million won or less per month.
The average monthly reduction was 96,000 won, and affected recipients received an average basic pension of 214,000 won after the reduction.
The system, introduced in 2014, has drawn criticism that it penalizes people who paid into the national pension for longer.
- Who
- 842,000 people receiving both the national pension and basic pension in South Korea were affected in 2025.
- What
- Their basic pension payments were reduced because they also received a national pension.
- When
- The figures cover 2021 to 2025. The report was published on October 26, 2026.
- Where
- South Korea.
- Why
- Under the linkage system, basic pension payments are reduced according to contribution period when a recipient’s national pension exceeds 150% of the basic pension’s standard amount.
Supporters of the linkage system
Critics of the linkage system
Purpose
Supporters of the linkage system
The system was introduced to promote fairness in pension benefits.
Critics of the linkage system
Critics say it disadvantages people who paid national pension contributions diligently and can reduce support for low-income recipients.
Policy concern
Supporters of the linkage system
The system links basic pension reductions to national pension amounts and contribution periods.
Critics of the linkage system
Nam In-soon called for analysis of reductions by recognized-income bracket and an assessment of their effect on retirement income.
The national pension-linked basic pension reduction system was introduced.
The total amount of reductions was 300.1 billion won, affecting 389,000 people.
Reductions reached 892.5 billion won and affected 842,000 people.
Maeil Business published the figures, citing data provided to lawmaker Nam In-soon by the Ministry of Health and Welfare.
- People affected in 2025
- 842,000
- Total reductions, 2021–2025
- 2.8293 trillion won
- Average monthly reduction in 2025
- 96,000 won
- Affected recipients receiving 1 million won or less in national pension
- 678,000 (80.5%)
- Affected recipients receiving 700,000 won or less in national pension
- 390,000 (46.3%)
What people are saying
The share of older people receiving both the national pension and the basic pension who are subject to the linked reduction rose from 14.7% to 22.6% in four years.
Since 678,000 people subject to the reduction receive 1 million won or less in national pension each month, we must closely examine the effect of the linked reduction on older people’s actual retirement income.
We should analyze the reduction situation by recognized-income bracket and review the effect on retirement income security so that people who diligently paid insurance contributions do not feel disadvantaged.