ABSTRACT
Population ageing in Korea has emerged as one of the main public policy concerns on the national agenda. Because of an increasing average life expectancy and declining birth rates, the Korean population is ageing at a pace faster than in any other country. The public pension system has, in many countries including Korea, become vulnerable due to population ageing and the increased cost of supporting the elderly. Weakened traditional sources of support for the elderly, brought about by changes in the family structure, as well as changes in the labour market, have further exacerbated this vulnerability. Confronted with the responsibility of supporting the older generation while the working population is in decline, the nation is faced with the challenge of sustaining the country’s economic growth. Consequently, fundamental reform in the public pension system has emerged, and will continue to remain, as a core policy issue as the nation prepares for a dramatically different demographic structure.
