• Asia-Pacific Journal of Business
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• v.15 no.3
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• pp.449-468
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• 2024

Purpose - The purpose of this study was to analyze the civil servant pension system in Korea, focusing on general administrative officials. Design/methodology/approach - This study developed a pension projection model that reflects the latest reforms and applied it to forecast the income replacement ratio and benefit ratios. Based on these projections, the study examined financial trends and proposed necessary reforms to ensure sustainability, such as adjusting the pension age. Findings - First, the benefit ratio decreases with later birth cohorts, showing that the reforms have reduced benefit gaps across generations. Second, while fairness within the same generation shows little difference between ranks, differences in income levels still result in significant disparities in pension amounts. Lastly, the pension deficit is expected to increase until 2029, after which it will gradually decrease, though further reforms are needed to ensure long-term financial sustainability. Research implications or Originality - This study is the first to comprehensively assess the fairness and sustainability of the civil servant pension system in Korea, considering both inter- and intra-generational equity. The findings provide valuable insights for policymakers aiming to ensure the system's sustainability as well as maintaining fairness across different cohorts and income levels.

• Journal of Labour Economics
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• v.39 no.4
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• pp.57-78
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• 2016

This study analyzes economic behaviors of government employee pension subscriber's household by comparison to national pension subscriber's household. First, government employee pension subscriber's household income is higher than national pension subscriber's one. Second, household net assets of government employee pension subscriber are smaller than the ones of national pension subscriber. Government employee pension could crowd out private household savings, and a national pension subscriber's household inherited more than a government employee pension subscriber's. Third, a government employee pension subscriber's household is also likely to expend more than a national pension subscriber's household. Both summary statistics and fixed effects estimates give significant coefficients to government employee's dummy. Government employee pension subscriber's households do not need to save more because they expect to receive a stable retirement pension which gives relatively higher compensation. Thus, they are likely to consume more than national pension subscriber's households.

• The Korean Journal of Applied Statistics
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• v.28 no.4
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• pp.763-779
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• 2015

This study estimate the adequate replacement rate of retirement income by income brackets and suggests roles of pension and non-pension income sources to achieve it for each income bracket. Priori research focused on elderly poverty; however, there has been little discussion about an adequate income level for retirement. We calculate an adequate income replacement rate separately for the poor, middle, and high income group as well as the average level of replacement rate for all groups. We also investigate the gap between the adequate income replacement rates and realized rates, and propose roles for each income source to curtail the gap. It is essential to recognize that the adequate income for retirement is unable to be met only by an annuity. To emove the gap, it is vital to utilize non-pension income although annuity is a primary source for retirement. Especially, the public and private pension plays a role to overcome poverty and live affluent in retirement, respectively.

• Korean Journal of Social Welfare
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• v.48
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• pp.7-41
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• 2002

This paper analyses the proposals contained in the British Government Green Paper, A New Contract for Welfare: Partnership in Pensions for low paid workers and the potential of the new rules to guarantee a decent income in old age. The UK pension system is a partnership between the State(providing the basic state pension and the SERPS), employers(providing occupational pension scheme) and private pension providers(providing personal pensions). Although the system needs to change, this partnership remains the right foundation. However, the pension Green Paper proposes substantial changes to second tier pension provision in the UK. In particular, the Government plans to replace the SERPS with a new State Second Pension. According to the Green Paper, this will result in "dramatically better pension provision for those earning less than ${\pounds}9,000$ a year" and through increased payments to private pension schemes, will also provide "extra help to those on middle incomes(${\pounds}9,000-{\pounds}18,500$ a year). Therefore, it discusses the general principles inherent in the design of the British pension system and analyses the balance of these principles is represented in the Green Paper. The paper then examines how the Government's proposals protect individuals from a means-tested old age. This paper finds that the Green paper's proposals add up to reinventing a new two-stage basic pension. However, two key features of a such a basic pension package are missing- an 'adequate' level of payment and comprehensive entitlement. Because of these missing principles we argue that the Green Paper's proposals incorporate for the low paid. The income from the basic pension and the secondary pension which is so near the means-tested minimum that little is gained in retirement from a lifetime of work and contribution. Indeed, the shift away from collective provision and the emphasis on individual responsibility will reinforce this inequality, so that many poor will continue to experience poverty in later life.

• Korean Journal of Social Welfare
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• v.57 no.2
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• pp.375-403
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• 2005

This Study reviews theoretical argument about the effect of retirement earnings test on the labor supply of the aged which is controversial issue in OECD countries and analyze the effect on the incidence of re-employment, re-employment period of suspended officials and the possibility of re-retirement through Government Employment Pension Corporation data. It consists of 178,363 public officials who received pension benefit or disability pension in January 2005. The main result of this research shows that public officials re-employed were 8,086 which is 4.5% of total retired, and median survival time of suspended pension payments is 3.3 years. Also the median re-employment period of 100% suspended officials is about 20 month shorter than that of 1/2 suspended officials and it is shown in regression analysis that the possibility of re-retirement by 100% suspended officials is statistically significant higher than those of 50%. It specially expects greater influence if includes in case taking lump-sum or no making effect of re-employment because current system withhold pension payments even by earned income itself. Therefore, this analysis suggests suspension of pension payment properly applied according to the age and income together with "Delayed Retirement Credit" or "Partial Pension" for developmental alternatives of civil servant's suspension of pension payments. Furthermore, It is urgently needed that distinctive quality data about re-employment including earnings to perform deep-empirical research for effective policy. Lastly, it is extremely necessary to reinforce management system of Government Employment Pension Corporation.

• Korea Real Estate Review
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• v.28 no.3
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• pp.53-64
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• 2018

OECD countries have been stimulating private pensions instead of public pensions because the financial stability of public pensions has been threatened by the aging population. Korea, which has the fastest aging population in the world, has been following the recommended policies of major countries. Unlike major economies, however, most of Korea's household assets are composed of real estate assets. Due to the economic and social importance of real estate assets in Korea, the wealth effect of real estate has been used as a major tool in macroeconomic policy. This study analyzed the effect of real estate value changes on the contribution of private pensions (personal pension + retirement pension). Utilizing a two-way, fixed effect model with the balanced panel data of the National Survey of Tax and Benefit, empirical results presented that the private pension contribution increased by 0.171% when the value of real estate increased by 1%. Thus, real estate value changes were analyzed as positive for retirement preparation through private pension. These results suggested that if the real estate market would shrink in the future, consumption would decrease, and the degree of preparation for retirement might be smaller.

• 재활복지
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• v.21 no.3
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• pp.85-106
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• 2017

The purpose of this study is to verify the effect of the public pension and the old-age preparation on the life satisfaction of the elderly with disabilities who have paid jobs, focusing on mediation effects of self-esteem. The data of "the 8th year Panel Survey of Employment for the Disabled" of 2016 surveyed by the Korea Employment Agency for the Disabled was used. Among the 5,092 people with disabilities, who are 60 or older and who are employed for paid jobs, only 296 cases were finally selected and analyzed by using SPSS 20.0 Version. The results of this study are as follows: First, public pension is a factor that increases the life satisfaction of the population. The elderly with disabilities who have paid jobs and well prepared for the old-age are more likely to have higher life satisfaction. Second, self-esteem did not seem to mediate between public pension and life satisfaction. Third, self-esteem have proven to mediate between old-age preparation and life satisfaction. This study is meaningful in terms of finding mediating factors such as public pension, revitalization of old-age preparation and self-esteem as part of raising life satisfaction of the elderly with disabilities.

• The Journal of Society for e-Business Studies
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• v.24 no.4
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• pp.1-16
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• 2019

Blockchain technology prevents tampering of central authorities that manage voting process, enhancing trust in the vote results. This technology enables citizens to participate more directly in the areas where delegation was inevitable due to the difficulties in polling fair and trustworthy public opinions. There are many projects around the world proposing to implement voting system for public decision making using blockchain technology. The blockchain voting system is expected to work as a transparent and fair channel for polling public opinions, which will transform the public decision-making process and governance. Korean National Pension Service (NPS) recently introduced stewardship code to better represent the interest of beneficiaries. However, because of the mistrust in governance of NPS, introduction of stewardship code is facing criticism for potential misuse of their voting rights against the interest of beneficiaries and for government's interference with corporate management. This study proposes a voting system applying blockchain technology for polling the opinions of National Pension Fund's beneficiaries to support public decision-making, and discusses social and institutional conditions for implementation of the proposed system.

• The Journal of the Convergence on Culture Technology
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• v.4 no.3
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• pp.139-147
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• 2018

This study starts with the consciousness of what should be the public pension service that meets the 4th Industrial Revolution era. To do this, we review the current status of non-facing services of domestic and foreign public institutions, and draw out implications for revitalizing non-facing services of the National Pension over the medium to long term. First, we reviewed the status of non-face-to-face service and the authentication method of the National Pension Service. Next, we reviewed the status of non-facing services in public pension and private agencies in the United States, the United Kingdom, Canada, and Australia. Based on the results of the analysis, we needs to analyze the impact of the 4th Industrial Revolution on the National Pension Service and extract future strategies, to expand channels of non-facing by business, to introduce PinTech as a non-facing authentication method, and to propose a unified service channel through the construction of an internet integrated portal. In the 4th industrial revolution era, it is possible to secure the connectivity of government portal for civil affairs and intelligence and automation introducing artificial intelligence robots.

• Korean Journal of Social Welfare
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• v.62 no.2
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• pp.329-348
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• 2010

Following the welfare state typology well known, the typology in terms of individual system in welfare state has been widely examined and, pension which is the biggest and most important in welfare state has been classified into Beveridge and Bismarckian types based on their pension system design. Such typology focused on benefit type or size of private pension has been recently refined to add a new type - 'Bismarckian Lite' type - in addition to traditional Beveridge and Bismarckian types. Whereas the pension reforms in the developed countries has been changes within their pension regimes, the Korean pension reform in 2007 seems to have changed the existing social insurance type into the 'Bismarckian Lite' type. However, considering the immaturity of Korean pension regime, it is difficult to conclude the existing status of the Korean pension regime and, the Korean one can be classified into a multi-pillar one. Over the last decades the developed countries have increased the size of private pension regardless of their original pension regimes, which tends to converge into multi-pillar schemes. Accordingly, there is recently a new typology focused on the degree of regulation in terms of private pensions, which seems to be the better perspective. It will be more important how to regulate the (immature) occupational pension as well as the National Pension in Korea. Considering that old age income security in countries where the public regulation regarding private pension was absent has been deteriorated, it would be necessary to strengthen the role of government to effectively regulate private pension.