Bill to Revamp National
Pension Gets Parliamentary Nod

Chairman of the National Assembly Health and Welfare Committee opposes ratification of KORUS FTA due to public health threats

Kim Tae-hong, chairman of the National Assembly Health and Welfare Committee, said his committee is trying to muster social consensus on the revamping of special funds, including the privately-run school teachers'pension. He also noted that the enactment of the measure to reform the National Pension has laid the foundation for gradually shifting the structure of the national pension scheme into one which "shoulders an appropriate level of contributions and pays a proper level of benefits."
The following are excerpts from NewsWorld's written interview with the parliamentary committee chairman:
Question: What is the most memorable achievement you have made while serving as the chairman of the National Assembly Health and Welfare Committee?
Answer: Following long-standing disputes and conflicts, the National Assembly approved a bill on an across-the-board amendment of the act banning discrimination against the disabled and the reinstatement of their rights as well as the act on the welfare of the disabled this past March.
The acts are significant in that they have provided an opportunity for disabled persons to participate in society and guarantees their equal rights by clarifying ambiguous regulations in order to ban discrimination against them and to protect the rights of those who experience discrimination.
It is also noteworthy that policies toward the disabled, which are considered steps to provide preferential benefits, will be implemented in a realistic and effective fashion by allowing the disabled to participate in the decision-making process.
Q: Will you tell our readers about the purpose and background of the measure to revamp the national pension fund, which was approved by the National Assembly after a long-running controversy this year?
A: Many experts from such international agencies as the Organization for Economic Cooperation and Development (OCED) and the World Bank as well as domestic think tanks, including the Korea Development Institute (KDI) have persistently raised the possibility that the current financial structure of the national pension system is not sustainable due to a lower birth rate and an aging population. Public mistrust and misgivings over the issue have been mounting.
After the year 2008, the number of beneficiaries is projected to surpass the 3 million mark, exacerbating the financial stability of the national pension system.
When the national pension scheme was introduced, it had a structure which "shouldered a lower level of contributions and paid a higher level of benefits."The brisk public debate has been over the need to revamp the national pension scheme amid concerns about the probability of the eventual collapse of the scheme. The revision bill on the National Pension Act finally passed through the National Assembly following more than three years of debate.
Q: What impact and improvements do you think the measure to reform the national pension scheme will bring about?
A: The revision bill has laid the foundation for shifting the structure of the scheme to one which "shoulders an appropriate level of contributions and pays a proper level of benefits on a gradual basis so that financial uncertainties can be solved and the management of the pension fund can be stabilized in the long run.
It has introduced diverse ways of making institutional changes for eliminating the "uncovered zone"and guaranteeing multi-layered incomes in an effort to remove pubic mistrust and misgivings over the national pension scheme.
Now is the time to ensure the stability of the structure by making a precise appraisal of the incomes of the insured. The structure change should be made in consideration of equality with other pensions including the public officials'pension fund, the privately-run school teachers pension and the military personnel pension.
With that in mind, the National Assembly Health and Welfare Committee is striving to get a social consensus on the revamping of the special funds by establishing the tentatively-named Pension Institutional Reform Committee.
Q: Controversy over the proposed revision of the Medical Act has been flaring up. Will you tell us your views on the revision plan?
A: The measure drafted by the Ministry of Health and Welfare to revise the Medical Act has hit strong opposition and protests from the medical community. In the face of the strong opposition from the medical community, the government stepped back and, in May, submitted a compromise bill to the National Assembly, containing a majority of demands from the medical field, including the removal of new regulations defining medial practices and the backtracking of guidelines on standard medical treatment.
Since the across-the-board revision of the Medical Act in 1973, it has undergone partial amendments on 25 occasions, thus bringing about confusion in the system. I recognize the need for revising the act when it no longer reflects a changed medical environment and diverse public demands.
The National Assembly is seeking to pass a revision bill for the Medical Act without making substantial changes in articles related to the medical market, including those on the establishment of clinics within hospitals, permission for medical advertisements as well as M&As of medical corporations ― the articles the civic organizations have demanded to delete.
The articles in question are designed to shift the medical system in accordance with the full market-opening measures for the purpose of easing regulations on medical institutions and ensuring the advancement of medical systems. However, the problem is that they could cause an increase in medical costs and bi-polarization of medical services, thus possibly endangering public health.
Accordingly, the government, along with many experts, should have full discussions on the problems and the impact of the across-the-board amendment to the Medical Act submitted by the government. I believe the parliamentary passage of the government's bill will require social consensus on the revision.
Q: As head of the Emergency Situation Conference, a gathering of bipartisan lawmakers opposing the parliamentary ratification of the Korea-U.S. Free Trade Agreement, you have been conducting diverse activities. Will you be specific on the future direction of your activities?
A: The group was established in late March when the conclusion of the Korea-U.S. FTA negotiations were imminent by lawmakers who oppose the FTA. Its purpose is to explore parliamentary countermeasures to the FTA that transcend parties and the political spectrum.
Representatives of the group visited the presidential office, Cheong Wa Dae, to deliver a letter protesting the FTA deal. We made public our stance against the clumsy conclusion of the FTA negotiations. The conference is seeking ways to thwart the parliamentary ratification of the KORUS FTA.
The conference will form policy advisory groups to examine the impact the KORUS FTA will have on society and invoke a parliamentary investigation and hearings on the problems of the FTA deal. We will also conduct a nationwide campaign against the ratification of the FTA agreement.
Q: Will you elaborate on your stand concerning the parliamentary action of the KORUS FTA ratification bill?
A: In February 2006, the government suddenly declared the launch of FTA negotiations between Korea and the United States. It hurriedly signed the FTA deal after only one year of negotiations in order to time it with the expiration of the Trade Promotion Authority, the authority of the U.S. president to negotiate agreements which the U.S. Congress can either approve or deny, but not amend.
The KORUS FTA, signed on June 30, 2007, unlike previously ratified FTAs, is expected to have tremendous ripple effects on people from all walks of life, including the political, economic and legal sectors. So, it's more important to take an in-depth look into the agreement and take countermeasures in advance.
Besides, we have to review the agreement and improve it as public misgivings are rising that some parts of the KORUS deal, disclosed only after its signing, could deliver a great impact on the Korean economy and damage Korean industries. It is also feared that it could conflict with the Constitution in the course of the revision of relevant laws.
In particular, the KORUS FTA could threaten to endanger public lives, health and food safety as well undermine our quarantine rights. As a result, the FTA deal should be reviewed from scratch and it should not be ratified due to public health and food safety concerns.
As chairman of the National Assembly Health and Welfare Committee and a representative of the Emergency Situation Conference, I will throw my heart and soul into mustering support from other lawmakers to prevent the ratification of the deal.
Q: What serious problems do you think the KORUS FTA will create?
A: The deal has virtually incapacitated the government's plan to lower pharmaceutical product prices. Chances are high for the importation of U.S. beef with special risk material (SRM), such as bone fragments, feared for mad cow disease. Additionally, a virtual failure to regulate genetically modified organism imports could threaten public food safety. The problem lies with the government's attitude of bowing to U.S. pressure without taking countermeasures.
What make matters worse is that lower priced beef, susceptible to mad cow disease, and GMO agricultural products could facilitate large-scale consumption at schools and group cafeterias, thus endangering the health of the public, including our pupils.
Q: Will you tell us about the direction of parliamentary activities you will conduct during the remainder of your term?
A: The government claims that the KORUS FTA is inevitable in consideration of national interests, but the interests that must be considered most are the ones that protect the future of our children.
I maintain that the deal, which disregards public health and food safety as well as parliamentary rights on legislation, should be declared null and void. I understand that the action will be the only way of protecting the public from the horror of mad cow disease. As a member of the Emergency Situation Conference, I will make my utmost efforts to oppose the ratification of the KORUS FTA. nw

Rep. Kim Tae-hong, chairman of the National Assembly Health and Welfare Committee