• Korean Journal of Social Welfare
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• v.63 no.1
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• pp.343-368
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• 2011

This Study aims to criticize national pension fund governance reform plan of Korea government and to search for an alternative direction of the reform. Firstly, I examine the theoretical basis of the Korean government reform plan by clarifying limits of application of agency theory to the public pension fund governance. Secondly, I try to reconstruct principles of the public pension fund governance with an alternative theoretical view emphasizing democracy principle. Thirdly, I evaluate the government reform plan with the basis of reconstructed pension fund governance principles. The government reform plan is expected to cause retrenchment of democracy and even political autonomy. It also would make worse the problem of pension fund autonomy from the financial market and the risk of the pension fund caused by market turbulence. Finally I suggest alternative direction of the pension fund governance reform emphasizing the democracy principle. This direction contains constructing co-determination structure of the state and the civil society, escalating controling power of the governing body to the administration body, setting the limits of the roles of the state, attaining of the autonomy from the financial market, strengthening organizational and social accountability.