@article{ART000951083},
author={Wonshik Kim},
title={The Korean Corporate Pension and Its Future Policies},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2005},
volume={16},
number={1},
pages={95-131}
TY - JOUR
AU - Wonshik Kim
TI - The Korean Corporate Pension and Its Future Policies
JO - Journal of Insurance and Finance
PY - 2005
VL - 16
IS - 1
PB - Korea Insurance Research Institute
SP - 95
EP - 131
SN - 2384-3209
AB - The purpose of this paper is to evaluate the new Korean corporate pension
system, which is expected to be implemented at the end of 2005, and to derive its policy directions.
Transformed from the mandatory severance payment started since 1950s, the
pension system will need comprehensive amendments; in order to do that, change
in related laws is necessary as well.
First, the Compensation Liability Guarantee Fund should level up its coverages
on unpaid compensation and should change its roles to guarantee the pension right.
Second, tax preference on lump-sum severance payment should be reduced so that
employees can get the incentive to move the pension. Third, workers’fringe
benefits to accumulate assets, such as Workers’Welfare Fund, ESOP, Stock
options, etc., should be restructured so that those can be used for the resources of
corporate pension.
In the new corporate pension system, the followings should be added:
First, the system should be managed so that it can improve equity among
workers. It should adopt top-heavy plans, and give workers incentives to increase
productivity by designing pension right according to firms’own characteristics.
Second, Pension Benefit Guaranteed Corporation (PBGC) should be implemented
to protect the pensioners in case of pension institution’s bankruptcy. Third, tax
incentives to transform the lump-sum severance payment to pension, should be
given. Lastly, the contract-out from national pension contribution should be allowed
to build a sound 3-pillar pension system. It will be helpful in maintaining stable
pension system at the front door of aging society, because it will bind the corporate
pension with national pension.
KW - private pension;social security;severance payment;retirement
DO -
UR -
ER -
Wonshik Kim. (2005). The Korean Corporate Pension and Its Future Policies. Journal of Insurance and Finance, 16(1), 95-131.
Wonshik Kim. 2005, "The Korean Corporate Pension and Its Future Policies", Journal of Insurance and Finance, vol.16, no.1 pp.95-131.
Wonshik Kim "The Korean Corporate Pension and Its Future Policies" Journal of Insurance and Finance 16.1 pp.95-131 (2005) : 95.
Wonshik Kim. The Korean Corporate Pension and Its Future Policies. 2005; 16(1), 95-131.
Wonshik Kim. "The Korean Corporate Pension and Its Future Policies" Journal of Insurance and Finance 16, no.1 (2005) : 95-131.
Wonshik Kim. The Korean Corporate Pension and Its Future Policies. Journal of Insurance and Finance, 16(1), 95-131.
Wonshik Kim. The Korean Corporate Pension and Its Future Policies. Journal of Insurance and Finance. 2005; 16(1) 95-131.
Wonshik Kim. The Korean Corporate Pension and Its Future Policies. 2005; 16(1), 95-131.
Wonshik Kim. "The Korean Corporate Pension and Its Future Policies" Journal of Insurance and Finance 16, no.1 (2005) : 95-131.
