To improve the effects of social welfare policy, economic growth is indispensable. In this Paper, therefore, we recommend that a reform in employees pension insurance should be carried out for economic stabilization in our country. With this reform the demand stimulating effect can be expected to prove itself effective.

The intended reform is to use the reserve of employees pension insurance and to abolish the system which burden employers with the payment of premiums. To use the reserve enables most of employers to reduce their labor cost by six percent. As a result, both the business conditions and the current balance of employees pension insurance will turn in favor.