The government has unveiled a national pension reform plan aimed at securing financial stability, while reducing the burden on the country's young people through measures such as increasing monthly insurance premiums.

In the parametric plan announced by Health Minister Cho Kyoo-hong on Wednesday, the government proposed raising the premium rate from the current 9 percent to 13 percent, and upwardly adjusting the nominal replacement rate to 42 percent.

Through these adjustments, the government expects to extend the depletion of the pension fund by 16 years, or until 2072, which is a major challenge for the country trying to tackle a rapidly aging society and plunging population.

The government will seek to adopt an "automatic adjustment mechanism" currently used by 24 out of 38 OECD member states, which adjusts payout amounts and entitlement age based on factors such as inflation, population changes and other economic conditions.

The reform plan also includes a differentiated premium increase by age group, with gradual hikes of zero-point-25 percentage points annually for those in their 20s and by one percentage point annually for those in their 50s, in order to ease the long-term burden for younger people.