A Very Important Pension Reform Forum, Part 3 (Held in October 2004) — Director Yoon Seok-myung

October 22, 2004

held at the National Assembly,

hosted by the Korean Social Security Association,

at the forum,

this is the main content of the presentation by Yoon Seok-myung, Director of Research Coordination.

In order to cope with the deepening 'low birthrate and population aging,'

the position is that fiscal-stabilization measures for the National Pension, based on the first National Pension financial projection of 2003, are urgently needed.

Reflecting the results of the first financial projection,

the National Pension's income replacement rate

would be lowered by 10 percentage points, from the existing 60% to 50%, and

the content proposes raising the contribution rate by 6.9 percentage points, from the existing 9% to 15.9% by 2030.