"/> Welfare Reform on the Web (November 2009): Pensions - overseas
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Welfare Reform on the Web (November 2009): Pensions - overseas

The impact of neo-liberalism on South Korea's public pension: a political economy of pension reform

C.L. Jung and A. Walker

Social Policy and Administration, vol. 43, 2009, p. 425-444

Since the Asian economic crisis of 1997, public welfare provision in Korea has expanded. However, the public pension system has been cut back without any significant public resistance. The most recent phase of this process, the second public pension reform, was implemented in June 2007 with the aim of reducing the replacement ratio by one third from 60% to 40%. In contrast to European public pension schemes, which are based on the pay-as-you-go principle, the Korean system is funded and has accumulated a huge pension fund (about 30% of GDP) and its management leads to interaction with the financial markets. This article pinpoints the key roles of intergovernmental organisations and the domestic neo-liberal policy elite in the reform. This neo-liberal elite was critical to the development of an influential discourse on the 'crisis' in the national pension scheme which exaggerated the risks of fund exhaustion due to low returns on investments.

A possible and desirable pension system

J. Banyar and J.Meszaros

Boulder, Col: Social Science Monographs, 2009

This book examines the pension systems of various European countries and looks at options for their future development. It focuses particularly on the situation in Hungary. It provides recommendations that can be applied to other developed countries whose birth rates are falling while life expectancy of their population is increasing.

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