KJCKorea
Journal Central

@article{ART001715396},
author={Wonshik Kim},
title={A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2012},
volume={23},
number={4},
pages={61-98}

TY - JOUR
AU - Wonshik Kim
TI - A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System
JO - Journal of Insurance and Finance
PY - 2012
VL - 23
IS - 4
PB - Korea Insurance Research Institute
SP - 61
EP - 98
SN - 2384-3209
AB - This paper suggests a structural reform of the Korean national pension system. Korean retirement income security system consists of national pension, legal corporate pension, and individual pension, which are self-financed, and basic aged pension and minimum life guarantee benefit of the aged, which are tax-financed. Even though these programs are substitutable for one another, they are individually-run, creating moral hazard problems in households' contribution to national pension. Therefore, there is a need for the establishment of an efficient system that provides optimal level of retirement income to households. I suggest a hybrid national pension system, where (i) national pension uses a defined benefit method in financing basic benefit, and a defined contribution method in income related benefit; (ii) basic benefit is income-tested while insuring basic aged pension and minimum life guarantee benefit of the aged, and; (iii) income related benefit are allowed to be contracted out from legal corporate pension. The policy change decreases the government's fiscal burden in case of depletion of national pension fund, and strengthens the capital market by making pension fund market more competitive.
KW - corporate pension;individual pension;public pension;welfare program
DO -
UR -
ER -

Wonshik Kim. (2012). A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System. Journal of Insurance and Finance, 23(4), 61-98.

Wonshik Kim. 2012, "A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System", Journal of Insurance and Finance, vol.23, no.4 pp.61-98.

Wonshik Kim "A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System" Journal of Insurance and Finance 23.4 pp.61-98 (2012) : 61.

Wonshik Kim. A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System. 2012; 23(4), 61-98.

Wonshik Kim. "A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System" Journal of Insurance and Finance 23, no.4 (2012) : 61-98.

Wonshik Kim. A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System. Journal of Insurance and Finance, 23(4), 61-98.

Wonshik Kim. A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System. Journal of Insurance and Finance. 2012; 23(4) 61-98.

Wonshik Kim. A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System. 2012; 23(4), 61-98.

Wonshik Kim. "A Structural Change in Korean National Pension for Efficient Multi-pillar Retirement Income Security System" Journal of Insurance and Finance 23, no.4 (2012) : 61-98.