The national pension fund said Monday that the number of its recipients reached 7 million this month, marking the first time the milestone has been reached since its launch in 1988.

"More than half of South Koreans aged 65 and above are currently receiving national pension," the National Pension Service said in a statement. "This indicates that the NPS is playing a pivotal role as a safety net for retirees."

The NPS currently distributes 3.6 trillion won ($2.57 billion) monthly, with 833,000 recipients receiving 1 million won or more.

Meanwhile, the government recently proposed raising the pension contribution rate from the current 9 percent to 13 percent of income and implementing age-based differentiated increases to address concerns about the fund's sustainability.

South Korea's pension system, initially established to ensure a stable income after retirement, has faced challenges due to the rapidly aging population and declining birth rate.

Younger generations have also expressed concerns that they may not receive adequate pension benefits despite their contributions. (Yonhap)