ABSTRACT
This chapter analyses the development and current state of the National Pension Scheme (NPS) and the multi-pillar system of old-age income security in Korea. The NPS is the key programme in the entire old-age income support system. Nonetheless, it is not sufficient to focus only on the NPS in understanding the changing nature of Korea’s old-age income security. First, the NPS is not mature, with few retired workers yet eligible to receive payments (and full benefits not payable until 2028). Second, the NPS has been downsized twice and is still under further reform pressure due to financial instability. In this context, other complementary income security measures have been designed to fill the gap in income security. Thus, the notion of ‘multi-pillar’ is useful for understanding the old-age income security system.
