South Korea basic pension reductions hit low-income seniors

Data released by the Ministry of Health and Welfare shows that over 2.8 trillion won in basic pensions has been reduced over the past five years due to the National Pension linkage system. The number of individuals subject to these reductions rose from 389,000 in 2021 to 842,000 in 2025.

The linkage system, introduced in 2014 to ensure equity, reduces basic pension payments if a recipient's National Pension amount exceeds 150% of the standard basic pension (514,000 won in 2025). Critics argue this penalizes those who have made diligent, long-term contributions to the National Pension.

Approximately 80.5% of those affected are low-income recipients receiving less than 1 million won per month from the National Pension. For these individuals, the average monthly reduction is 96,000 won, leaving them with an average basic pension of only 214,000 won—significantly lower than the 287,000 won average received by other simultaneous pension recipients.