The emergence of occupational pensions in Korea

George Beram, Corée, République De

The Republic of Korea (South Korea) has the world’s 10th largest economy, based upon 2004 GDP, but no occupational pension system until now. Defined benefit and defined contribution plans are allowed for the first time beginning, December 1, 2005 but only as replacements for existing mandatory termination indemnities. With a rapidly ageing population, a national social security pension system that promises double what can be delivered at current contribution rates and the rapid decline of the Confucian system where children take care of elders, an occupational pension system that works is badly needed. Time will tell but the new Korean occupational system has some interesting twists, actuarially and otherwise, and in this paper I shall review the past, the present and what the future may hold for a dynamic, innovative society that is being forced to face a rather sudden and rapidly changing demographic structure and the retirement issues that are emerging equally as rapidly.
Date: 30 May - Time: 8:30 to 10:00 - Room: 252A
Theme: 3.A. Actuarial problems related to the retirement of the baby-boom