The purpose of this paper is to examine the effects of globalization on the reforms of social security system during the Kim Young-sam government. Under the Kim government, globalization profoundly took place in importing trade market, following the a...
The purpose of this paper is to examine the effects of globalization on the reforms of social security system during the Kim Young-sam government. Under the Kim government, globalization profoundly took place in importing trade market, following the agreement of Korea on the Uruguay Round at the end of 1993. It is also important to note that in the Kim government, globalization was regarded as the policy idea which dominates the policy making process, along with a new political watchword of 'Segehwa' declared by the President Kim Young-sam.
The Kim government did not make a serious effort to spend more expenditure on social security. Rather, social security expenditure was following a very much incremental approach in the budget process of the government. The government did not play the important role in the provision of social welfare. Instead, the government emphasized the roles of other non-governmental providers in the social welfare provision under the catchword of 'Korean welfare society model'. Regarding the reforms of social security system, the government extended the National Pension Program to the farmers and fishermen as a way to compensate losers in the process of globalization. However, the other reform measures, such as the revision of unemployment benefit scheme, the reform proposal of the National Pension Program, and the introduction of the private personal pension scheme were all aimed at the strengthening of the business-friendly or market-confirmative characteristics in the social security system. Arguably, the Kim government was increasingly taking into account the imperative of competitiveness in the formation of social security policy, affected by the policy idea of globalization.