Advanced Search
MyIDEAS: Login

Addressing Korea's Long-Term Fiscal Challenges

Contents:

Author Info

  • Murtaza H. Syed
  • Michael Skaarup
  • Tarhan Feyzioglu
Registered author(s):

    Abstract

    Korea is on the verge of an unprecedented demographic shift. In coming decades, rapid aging will transform it from one of the youngest populations in the OECD to among the oldest in record time. In turn, this shift will put tremendous pressure on the pension system and health and long-term care expenditures. This paper evaluates the impact of population aging on the long-term fiscal position in Korea, and assesses potential policy responses using the IMF''s Global Fiscal Model. The paper finds that the key to maintaining a sound long-run fiscal position is to act early and with a range of policy tools, including pension reform, tax base broadening (and, if necessary, rate hikes), improved tax administration and some expenditure reallocation.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21595
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/27.

    as in new window
    Length: 25
    Date of creation: 01 Jan 2008
    Date of revision:
    Handle: RePEc:imf:imfwpa:08/27

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Aging; Tax administration; Tax reforms; Tax revenues; pension; pension reform; tax rates; pension fund; fiscal policy; health care; pension system; long-term care; fiscal position; fiscal pressures; tax revenue; fiscal model; public debt; expenditure growth; fiscal deficit; labor force; contribution rate; pensions; tax base; fiscal consolidation; tax reform; fiscal sustainability; public finances; contribution rates; public expenditure; fiscal report; public spending; expenditure increases; taxation; fiscal balance; tax rate; fiscal stance; national pension; tax incentives; pension contribution; contribution base; dependency ratio; fiscal adjustments; expenditure restraint; taxable income; pension fund assets; pension expenditure; fiscal risks; payroll taxes; current pension; fiscal deficits; account deficits; replacement rate; fiscal consolidations; fiscal costs; government spending; aggregate demand; government budget; fiscal affairs; aggregate budget; revenue collections; fiscal transparency; budget constraint; pension obligations; expenditure ratios; increases in tax rates; pension contributions; long-term care costs; government revenue; national fiscal management; fiscal affairs department; occupational pension schemes; future obligations; tax increases; tax increase; occupational pensions; payroll tax; retirement; occupational pension; tax credit; fiscal surplus; fiscal management; government expenditure; fiscal expenditures; pensions system; expenditure cuts; accumulated savings; old-age pensions; pension schemes; national pension fund; fiscal consequences; pension fund asset; national pensions; retirement age; fiscal variables; central government expenditure; expenditure adjustment; tax system; pension fund contribution; long-term projections; fiscal projections; asset management; fiscal implications; wage growth; fiscal structure; fiscal objectives; fiscal space; fiscal prudence;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Dennis P. J. Botman & Papa M'B. P. N'Diaye & Hali J. Edison, 2007. "Strategies for Fiscal Consolidation in Japan," IMF Working Papers 07/37, International Monetary Fund.
    2. Dennis P. J. Botman & Stephan Danninger, 2007. "Tax Reform and Debt Sustainability in Germany," IMF Working Papers 07/46, International Monetary Fund.
    3. Laxton, Douglas & Pesenti, Paolo, 2003. "Monetary rules for small, open, emerging economies," Journal of Monetary Economics, Elsevier, vol. 50(5), pages 1109-1146, July.
    4. Dennis P. J. Botman & Keiko Honjo, 2006. "Options for Fiscal Consolidation in the United Kingdom," IMF Working Papers 06/89, International Monetary Fund.
    5. Dirk Muir & Douglas Laxton & Dennis P. J. Botman & Andrei Romanov, 2006. "A New-Open-Economy Macro Model for Fiscal Policy Evaluation," IMF Working Papers 06/45, International Monetary Fund.
    6. Benedict J. Clements & Sanjeev Gupta & Erwin Tiongson & Emanuele Baldacci, 2003. "What Sustains Fiscal Consolidations in Emerging Market Countries?," IMF Working Papers 03/224, International Monetary Fund.
    7. Batini, Nicoletta & Jackson, Brian & Nickell, Stephen, 2005. "An open-economy new Keynesian Phillips curve for the U.K," Journal of Monetary Economics, Elsevier, vol. 52(6), pages 1061-1071, September.
    8. repec:rus:hseeco:316816 is not listed on IDEAS
    9. Daniel Leigh & David Hauner & Michael Skaarup, 2007. "Ensuring Fiscal Sustainability in G-7 Countries," IMF Working Papers 07/187, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Selim Elekdag, 2012. "Social Spending in Korea," IMF Working Papers 12/250, International Monetary Fund.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:08/27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.