This paper employs a Life-Cycle Overlapping Generations Model to quantify the welfare impacts of plans to postpone the depletion of the National Pension Fund. In order for the model to fully incorporate the rapidly changing demographic structure of Korea, we build and calibrate a model in transition directly. The model is considered suitable for analyzing the effects of demographic changes on the Korean economy and the effects of plans to change the National Pension System. According to the model simulation, to postpone the depletion of the National Pension Fund for 30 years, the premium rate must be increased to 18.3% from the current rate of 9%. By postponing the depletion of the fund reserve, young and future generations gain significantly at the expense of the old generations. The simulation results should be, however, interpreted that the current system is unjustifiably partial to the old generations. Moreover, given the current premium rate, it is desirable to strengthen the income redistributing function of the National Pension System.

Preface
Executive Summary

Chapter 1 Introduction
　Section 1 Background of the Study
　Section 2 Objectives and Methodology

Chapter 2 Model Economy
　Section 1 Demographic Structure
　Section 2 Individual Utility Maximization Problem
　Section 3 Firm Profit Maximization Problem
　Section 4 Composition of Macroeconomic Variables and Market Clearing
　Section 5 Definition of Equilibrium

Chapter 3 Model Calibration
　Section 1 Demographic Structure
　Section 2 Individual Utility Function and Labor Productivity
　Section 3 National Pension System
　Section 4 Production Function and Other Parameters

Chapter 4 Model Simulation
　Section 1 Macroeconomic Variables
　Section 2 Distribution of Income and Assets
　Section 3 Financial Status of the National Pension System

Chapter 5 Welfare Analysis of National Pension System Reform Plans
　Section 1 Social Welfare Function
　Section 2 Contribution Rate Increase for Financial Stabilization
　Section 3 Strengthening the Income Redistribution Function

Chapter 6 Summary and Conclusion

References
Appendix
ABSTRACT