With the KOSPI close to the 5,000 era, President Lee Jae-myung (이재명) raised the need for structural reforms to boost retirement pension returns that have remained in the 1 percent range.

At a New Year news conference at Cheong Wa Dae's State Guest House on Jan. 21, Lee referred to projections for an improved outlook for the National Pension Service's finances alongside the recent stock-market rally. He pointed out that forecasts say rising share prices could delay the point when the national pension is depleted, but retirement pensions, a key retirement asset, are being neglected.

Lee said recent share-price gains likely pushed fund returns above 20 percent and increased the national pension's reserves by about 20 trillion to 30 trillion won. He added that while typical fund returns are around 7 to 8 percent, retirement pension returns are stuck in the 1 percent range.

Lee cited the current structure of retirement pension management as the cause of low returns and hinted at the possibility of a shift to a fund model, premised on social discussion.

"Retirement pensions are workers' core retirement asset, and leaving them with returns below inflation is a loss," he said. "There is a need to discuss in academia and politics ways to integrate and restructure the complex pension system, including retirement pensions, the national pension and the basic pension, and to manage retirement pensions through a fund model," he said.

Lee drew a firm line against rumours recently circulating in the market, such as claims the government would force sales of overseas stocks or mobilise pensions to defend the foreign exchange market, calling them "malicious fake news."

"Groundless rumours that the government will force individuals to sell their retirement pensions or overseas stocks to defend the foreign exchange market are spreading as if they were fact," he said. "This is something impossible even in a socialist country, and the government has absolutely no authority or intention to do that," he said.

He then made clear that any discussion on converting retirement pensions into a fund model must also be premised on public consent.

"A fund model is only one alternative to raise returns," he said. "If the parties do not want it, we will not do it, and I will never change the system to make it worse than now and invite criticism," he said.