Lee myung-bak government pushes on with its marketization plans regarding not only social services also National Pension and National Health Insurance. Lee`s government is making efforts to change governance structure of National Pension fund instead ...
Lee myung-bak government pushes on with its marketization plans regarding not only social services also National Pension and National Health Insurance. Lee`s government is making efforts to change governance structure of National Pension fund instead to reform pension system because of political burden. The core of Government plans on reforming governance structure of pension fund is to change members of the National Pension Fund Management Committee from representatives of contributors to financial market experts. If government succeed in giving power of pension fund management to finance business experts, social regulations on pension fund management will be removed and pension funds will become financial capital rapidly. As it were National pension fund can be invested in equites or in any other things freely like other funds. However recent financial crisis shows the negative side of the results of the pension fund management reform and liberalization of pension fund. On the other hand Lee`s government drives retrenchment of National Health Insurance on the ground of financial soundness and deregulation in health services industry. It will revitalize private health insurance market. Right after taking power, suffering the debate on public health insurance retrenchment the reform policy failed to be justified. So It is supposed that the government will shift toward creeping marketization rather than take a path of rapid change.