The scheme has already been widely adopted in developed countries such as the United States, Canada, and Germany. (image: Donation Box by Jrwooley6/flickr)
SEOUL, Korea, Mar 16, 2014 (Korea Bizwire) – A new pension scheme called a “donation pension plan” will be introduced from next year at the earliest. The scheme, also known as the Kim Jang-hoon plan named after a Korean rock-ballad singer who is famous for giving in excess of 10 billion won for the past 10 years and lives in a rented apartment, allows the donor or his family members to receive monthly pension payments after making a donation in cash or real estate properties to charities.
The scheme has already been widely adopted in developed countries such as the United States, Canada, and Germany. For example, any American donor is entitled to receive pension payments within the range of up to 50 percent of the original donation until his death. The government said on March 13 that it would expedite the law’s passage within this year so that the scheme could be implemented by next year.
In addition, the government will introduce next month a scheme to grant a higher interest rate to savings accounts proportional to the saver’s donation mileage points. Prime Minister Jung Hong-won said in a national policy coordination meeting held on the 13th, “We have to make it easier for people to donate their money or properties so that the culture of donation could take roots in our society.”
Lifestyle (Follow us @Lifestylenews_Korea)
image: Donation Box by David Baron/flickr
