We address the structural problems of Korean Public Pension System, andsuggest reform plans. The current system suffers from the lack of targetefficiency and fiscal sustainability, and has risk of causing malfunction offinancial markets. We propose a parametric reform plan to resolve the problemswithout causing severe intergenerational redistribution inducing politicalresistance and deterioration of financial market distortion. The reform planconsists of: reinforcement of pension entitlements for socially disadvantagedgroups; reduction of pension benefits of the high-income retirees; andimprovement of private pension markets. A defined contribution plan is alsosuggested as a fundamental reform.