SEOUL — In an era defined by economic uncertainty and mounting living costs, a growing policy debate is intensifying across South Korea. At the heart of the friction is a stark contrast: young professionals struggling to afford rent while paying heavy taxes to support retired seniors, many of whom own multi-billion-won real estate.

The Million-Dollar Homeowner Collecting Public Pensions

Consider a hypothetical couple in their mid-60s residing in Seoul. They own an apartment with a market value approaching 1.6 billion KRW (publicly assessed value around 1.1 billion KRW). One spouse works part-time near their neighborhood, earning a modest monthly salary. Under South Korea’s current welfare framework, designed to alleviate senior poverty, this couple still qualifies for the Basic Pension.

Government data released by lawmakers shows that out of approximately 7.06 million Basic Pension recipients last year, about 57 percent—roughly 4 million people—own real estate. While homeownership alone does not equate to liquid cash, critics point out that the system has drifted far from its original mandate of targeting vulnerable, impoverished seniors. Because the eligibility threshold automatically adjusts to cover the top 70 percent of the elderly population, even seniors who own high-value properties in affluent districts—such as Seoul’s Gangnam area—continue to receive monthly payouts funded entirely by taxpayers.

Shifting Burdens onto a Straining Youth Generation

This dynamic has fueled rising frustration among younger generations. For thirty-somethings who have spent years navigating a sluggish job market and high entry barriers to the housing market, watching a portion of their monthly salaries go toward funding pensions for asset-rich retirees feels fundamentally unbalanced.

Economic data highlights a widening chasm between generations. Over the past decade, the average net worth of households headed by individuals aged 60 and older nearly doubled, climbing from about 360 million KRW to over 600 million KRW. In contrast, the average asset growth for households in their 30s has crawled at a much slower pace, widening the wealth gap between the two age groups from roughly 115 million KRW to over 240 million KRW.

Furthermore, South Korea’s demographic crisis—marked by a rapidly shrinking working-age population and an accelerating low-birth rate—means that a dwindling number of young workers will have to support an expanding pool of retirees. Although policymakers previously explored tightening asset cutoffs to reallocate funds toward genuinely impoverished seniors, the proposed reforms stalled amid concerns over political backlash and senior voter sentiment.

A Call for Structural Reform

Economists and policy experts warn that maintaining the rigid "top 70 percent" benchmark is no longer viable in a low-growth, super-aged society. Without structural adjustments to decouple pension eligibility from broad demographic quotas and tie it more strictly to actual financial need, the fiscal pressure on future generations will only intensify. Analysts stress that comprehensive pension reform is urgently needed to restore intergenerational equity before demographic realities force a crisis.

[ⓒ Global Economic Times. 무단전재-재배포 금지]