This project working paper discusses the prevailing system of income security for older persons in the Republic of Korea with regards to coverage, beneficiaries, and sustainability. It also discusses recently undertaken reforms of the income security system with regards to their budgetary implications. After the introduction of a mandatory pension scheme, coverage of pensions increased rapidly in the Republic of Korea. However, as the pension system in the Republic of Korea was introduced relatively late, poverty of older persons is still high. The paper concludes that recent reforms may be able to address the high poverty rate of older persons in the Republic of Korea. Further reforms may be required with regards to the Government employees pension scheme to ensure its sustainability.
Acknowledgements Executive summary 1 Introduction 2 Income situation of older Koreans 3 Population ageing in the Republic of Korea: An overview 4 Old-age income security system in the Republic of Korea 5 National Pension Scheme 6 Basic Old-Age Pension and Basic Pension schemes 7 Special occupational pension schemes 8 Prospects of the public pension system 9 Government efforts in coverage extension and income transparency 10 Summary and policy implications References Appendix