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| Korea Life Insurance Association (KLIA) Chairman Chung Hee-soo speaks during a press conference in Seoul, Monday. Courtesy of KLIA |
By Lee Min-hyung
Korea's tax authority should offer more incentives for private pensions amid a rising poverty ratio amongst elderly people and a rapidly depleting national pension here, Korea Life Insurance Association (KLIA) Chairman Chung Hee-soo said in a press conference, Monday.
"The most universal means to prepare for retirement is the national pension, but its liquidity is facing a crisis of rapid depletion. We cannot rely solely on it anymore at this period of an aging society," Chung told reporters.
He urged the nation's tax agency to provide more tax benefits for private pensions immediately, so as for the country to preemptively deal with any social problems stemming from the aging population.
"Korea's poverty ratio among elderly people is the highest among OECD member countries," he said. "To rectify such a disgrace, the tax authority should consider making a bold decision of offering tax benefits to private pensions."
The poverty ratio of senior citizens in Korea reached 39.4 percent, while that of other developed countries remained far lower than that level. The figure for the United States, Japan and the United Kingdom stood at 23, 20 and 15.5 percent, respectively.
The leader of the life insurance association also presented three core strategies for enhancing its role as a social safety net, securing sustainability in the industry and regaining customers' trust.
"A number of economic and social problems arise due to the unprecedentedly fast pace of falling birthrate and aging population," Chung said. "The life insurance industry has played a crucial role as a representative social safety net that took care of the public's post-retirement lives."
The association noted it would partner with market players to help them expand their business through digital innovation and senior-care.
"The association will proactively deal with any change in the social trend and help insurers develop relevant services," he said. "We will also do our best to build an institutional framework for the society to overcome crises and achieve growth at the same time."
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