Economics and Finance

    

Snowball Effect Strategy for the Innovation of the Korean National Pension System

Authors: Hyun-Tak Kim

In the Korean National Assembly, people are passionately debating innovative strategies to reform the nation's defined benefit retirement pension system in light of the national pension fund’s anticipated depletion by 2055. Current proposals, such as raising pension contribution rates and income replacement rates, appear to be mere stopgap measures. We advocate for leveraging the fund through the snowball effect as a strategic solution to these challenges. This leverage could be achieved through exchange-traded funds with high return rates, although they come with high volatility. Additionally, the Korean people must adopt a defined contribution retirement pension system, similar to the 401(k) in the USA.

Comments: 3 Pages. 2 Figures

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Submission history

[v1] 2024-07-19 02:41:01

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