South Korea's Ministry of Economy and Finance outlined retirement pension reforms and technology investment plans at the first joint meeting of economic ministers and science and technology ministers. The pension proposals would phase in mandatory external funding of retirement benefits and introduce a fund model for retirement pensions. Broader measures include artificial intelligence (AI) infrastructure investment and the development of policies on housing, employment and financial services for low income households. Following preparations in 2027, mandatory external funding would begin in 2028 with workplaces employing at least 100 people, to prevent unpaid retirement benefits. The pension fund model would combine professional asset management with strict fiduciary duties, with the labor ministry and financial authorities coordinating authorization and supervision. Assessments of pension providers would focus on retirement income provision and investment returns. Notices of scheduled default investment option application would move from four weeks after maturity to two weeks before maturity, reducing time spent in interim investments paying low interest. Further pension reform details are scheduled for release on Oct. 29 following consultations between the government and the ruling party. The ninth project under the regional revitalization investment fund would support a KRW 600 billion AI data center in Pohang, targeting construction completion in November 2027 and operations from January 2028. Procedures would be accelerated, including through an exemption from local fiscal investment review. Separately, ministries will coordinate research and investment around shared objectives for the seven SEED technology projects, linking technology development with demonstration and commercialization. Implementation plans are due by the end of 2026, with execution starting in 2027.

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