A Study on the Restructuring Strategy of the Public Pension System in Korea

Abstract

This study aims to find a rational structural reform strategy for the public pension system in Korea. As there are various reform strategies for the public pension system, we objectively reviewed various discussions and tried to suggest reasonable alternatives. For this purpose, we have diagnosed the problems of the current public pension system and reviewed the reform discussions and trends abroad(Chapter 2). Also, we examined the limitations of parametric reform of the public pension system and proposed basic principles of pension reform such as adequacy, financial sustainability, universal coverage, political neutrality, and simplicity(Chapter 3). Afterwards, we suggested two rational restructuring strategies applicable to the public pension system in Korea, based on the above discussions (Chapters 4-5). The strategies suggested in this study will be realistic policy alternatives that promote financial sustainability and adequacy, expand coverage, and separate roles and functions of the National Pension System and the Basic Pension in Korea.