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Facts of Corporate Pension and its Implication: Employer's Survey

  • Journal of Insurance and Finance
  • 2007, 18(3), pp.99-133
  • Publisher : Korea Insurance Research Institute
  • Research Area : Social Science > Business Management

Kim Won-shik 1 Shin Moon-shik 2

1건국대학교
2명지전문대 경제학과

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ABSTRACT

Corporate pension, started in the end of 2005, guarantees retirement benefit to the retired workers and extends the coverage of the present legal severance pay to the whole workers. However, the number of the firms that introduced corporate pension has not increased as much as expected. This paper surveyed facts related to corporate pension both for firms that introduced corporate pension and for those that did not. Some policy implications for the expansion of corporate pension were found. The survey suggests the following for the soft landing of corporate pension: first, more differentiated corporate pension tax incentives for both employers and employees, second, incentives for changing severance pay to corporate pension, third, education for labor unions as well as individual employees on corporate pension, and finally, environments where employees choose products of corporate pension rationally and independently.

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