CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purpose) |
The purpose of this Act is to contribute to securing the stable livelihoods of workers in their old age by stipulating matters needed to establish and operate a retirement benefit scheme for workers.
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| Article 2 (Definitions) |
For the purposes of this Act: <Amended by Act No. 8372, Apr. 11, 2007>
| 5. | The term "benefits" refers to an annuity or lump sum paid to workers under a retirement benefit scheme; |
| 6. | The term "retirement benefit scheme" refers to a retirement allowance system prescribed in Chapter II and a retirement pension plan prescribed in Chapter III; |
| 7. | The term "defined benefits plan" refers to a retirement pension plan in which the amount of the benefits a worker will receive is predetermined; |
| 8. | The term "defined contribution plan" refers to a retirement pension plan in which the amount of an employer's contribution to pay benefits is predetermined; |
| 9. | The term "individual retirement account" refers to a savings account set up for a person, etc. who has received a lump sum benefit under a retirement benefit scheme at a retirement pension trustee in order to deposit and operate such received benefit; |
| 10. | The term "participant" refers to a worker who has joined a retirement pension plan or set up an individual retirement account; |
| 11. | The term "reserve" refers to money accumulated with contributions paid by an employer or a participant in order to pay benefits when a ground for the payment occurs, such as retirement of the participant; |
| 12. | The term "retirement pension trustee" refers to a person registered in accordance with Article 14 in order to operate and manage retirement pensions or individual retirement accounts as well as to perform asset management duties. |
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| Article 3 (Scope of Application) |
This Act shall apply to all businesses or workplaces (hereinafter referred to as "businesses") employing workers: Provided, That this shall not apply to businesses employing only relatives living together with their employer, nor to servants hired for domestic work.
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| Article 4 (Establishment of Retirement Benefit Schemes) |
| (1) | Each employer shall set up at least one retirement benefit scheme in order to pay benefits to retiring workers: Provided, That this shall not apply to workers whose continuous service period is less than one year, nor workers whose average weekly working hours over a four-week period is less than 15 hours. |
| (2) | In setting up a retirement benefit scheme pursuant to paragraph (1), no differentiation shall be made within the same business. |
| (3) | If any employer intends to choose a type of retirement benefit scheme or change an existing type into a different one, the employer shall, if a trade union composed of a majority of workers exists at the business concerned, obtain the consent of the trade union, and if no such trade union exists, obtain the consent of the majority of workers (hereinafter referred to as "workers' representative"). |
| (4) | If any employer intends to change the details of a retirement benefit scheme chosen or changed pursuant to paragraph (3), he/she shall seek opinions from the workers' representative: Provided, That if the employer intends to change such details in a manner unfavorable to workers, it shall obtain the consent of the workers' representative. |
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| Article 5 (Treatment for Non-establishment of Retirement Benefit Schemes) |
Notwithstanding Article 4 (1), if any employer fails to establish a retirement benefit scheme, such employer shall be deemed to establish a retirement allowance system under Article 8.
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| Article 6 (Retirement Pension Deliberation Committee) |
| (1) | In order to deliberate on important matters concerning the operation and improvement of retirement pension plans, there shall be established a Retirement Pension Deliberation Committee (hereinafter referred to as the "Committee") under the jurisdiction of the Ministry of Labor. |
| (2) | The Committee shall be comprised of a chairperson, members representing workers, members representing employers, members representing public interest, and Government members. <Amended by Act No. 7636, Jul. 29, 2005> |
| (3) | The Vice Minister of Labor shall assume the chairmanship of the Committee. |
| (4) | Necessary matters concerning the organization and operation of the Committee shall be prescribed by Presidential Decree. |
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| Article 7 (Protection of Entitlement to Receive Benefits) |
The entitlement to receive retirement pension benefits shall neither be transferred to others nor offered as collateral: Provided, That such entitlement may be offered as collateral to the extent prescribed by Ministerial Decree of Labor where grounds and conditions prescribed by Presidential Decree, such as purchases of housing, are fulfilled. <Amended by Act No. 7636, Jul. 29, 2005>
CHAPTER II RETIREMENT ALLOWANCE SYSTEM
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| Article 8 (Establishment of Retirement Allowance System) |
| (1) | Any employer who intends to set up a retirement allowance system shall set up a system that makes it possible to pay a retiring worker a prorated amount equivalent to average wages earned for 30 days for each year of his/her continuous service. |
| (2) | Notwithstanding paragraph (1), any employer may, at the request of a worker, pay such worker a retirement allowance for his/her continuous service period prior to his/her retirement. In such cases, the continuous service period to be used for the calculation of the amount of a retirement allowance accumulated thereafter shall be reckoned anew from the time when the balance is settled. |
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| Article 9 (Payment of Retirement Allowances) |
Where any worker retires from his/her office, the employer shall pay such worker a retirement allowance within 14 days from the date when a ground for the payment occurs: Provided, That the payment date may be delayed under an agreement by the parties concerned in cases of special circumstances. <Amended by Act No. 7636, Jul. 29, 2005>
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| Article 10 (Extinctive Prescription of Retirement Allowances) |
If the entitlement to receive a retirement allowance under this Act has not been exercised within three years, the extinctive prescription of such entitlement shall be complete.
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| Article 11 (Preferential Payment of Retirement Allowances) |
| (1) | Retirement allowances shall be paid in preference to taxes, public charges and other claims, except for claims secured by pledges or mortgages on the whole property of an employer: Provided, That this shall not apply to taxes and public charges taking precedence over the said pledges or mortgages. |
| (2) | Notwithstanding paragraph (1), retirement allowances for the final three years of service shall be paid in preference to claims secured by pledges or mortgages on the whole property of an employer, public charges, and other claims. |
| (3) | The amount of retirement allowance under paragraph (2) shall be a prorated amount equal to average wages earned for 30 days for each year of continuous service. |
CHAPTER III ESTABLISHMENT OF RETIREMENT PENSION PLAN
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| Article 12 (Establishment of Defined Benefits Plan) |
Any employer who intends to set up a defined benefits plan shall prepare rules for defined benefits plan containing the following matters with the consent of the workers' representative and shall report such rules to the Minister of Labor:
| 1. | Matters concerning the selection of a retirement pension trustee; |
| 2. | Matters concerning participants; |
| 3. | Matters concerning a period of contribution. In such cases, the period of contribution shall be the period of providing service to the business concerned since the establishment of the retirement pension plan; but the period of service before the establishment of the retirement pension plan concerned may be included in the period of contribution; |
| 4. | Matters concerning the amount of benefits. In such cases, the amount of lump-sum benefits calculated based on the retirement date of a participant shall be a prorated amount equivalent to average wages earned for 30 days for each year of his/her continuous service; |
| 5. | Matters concerning the securing of financial soundness. In such cases, it shall be clearly stated that whichever is higher between the following amounts shall be accumulated: |
| (a) | The amount calculated under the method prescribed by Ministerial Decree of Labor, using the present value of estimated expenses incurred in paying benefits and the present value of estimated revenues accruing from contributions as at the last day of each business year, and whose level is prescribed by Presidential Decree; |
| (b) | The amount calculated under the method prescribed by Ministerial Decree of Labor, using estimated expenses incurred in paying benefits corresponding to the contribution period until the last day of the business year concerned of a person who is or was a participant, and whose level is prescribed by Presidential Decree; |
| 6. | Matters concerning types of benefits and eligibility requirements for recipients. In such cases, the following shall be clearly stated: |
| (a) | Annuities shall be paid to persons aged 55 or over, whose contribution period is ten years or more. In such cases, the payment period shall be five years or more; |
| (b) | Lump-sum benefits shall be paid to participants who fail to meet eligibility requirements to receive annuities or wish to receive lump-sum benefits; |
| 7. | Matters concerning the conclusion and termination of contracts to carry out operational management services under Article 15 and asset management services under Article 16, and transfer of contracts following termination thereof; |
| 8. | Matters concerning notification of the current state of operation of defined benefits plans. In such cases, participants shall be notified of the amount of reserve, the rate of returns, etc. at least once every year as prescribed by Ministerial Decree of Labor; |
| 9. | Matters concerning the occurrence of a ground for the payment of benefits, such as the retirement of a participant, and procedures for the payment of benefits; |
| 10. | Matters concerning the abolition and suspension of a retirement pension plan. In such cases, reasons for the abolition, suspension, etc. shall be clearly stated; |
| 11. | Other matters prescribed by Presidential Decree to operate the defined benefits plan. |
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| Article 13 (Establishment of Defined Contribution Plan) |
Any employer who intends to set up a defined contribution plan shall prepare rules for defined contribution plan containing the following matters with the consent of the workers' representative and shall report such rules to the Minister of Labor:
| 1. | Matters concerning the allocation of contributions. In such cases, the following shall be clearly stated: |
| (a) | The employer shall contribute at least an amount equivalent to 1/12 of the total annual wages of a participant, in cash; |
| (b) | Participants may contribute additional amounts, in cash, apart from the amount contributed by the employer under item (a); |
| 2. | Matters concerning the payment of contributions. In such cases, the following shall be clearly stated: |
| (a) | The employer shall regularly pay contributions at least once every year; |
| (b) | Where the employer has not fully paid contributions for a participant at the time the participant withdraws from the plan, the employer shall pay such contributions in arrears within 14 days from the date of his/her withdrawal; |
| 3. | Matters concerning the operation of reserves. In such cases, participants shall be allowed to choose an operating method for themselves and change the method of operating reserves at least once every half-year; |
| 4. | Matters concerning the methods of operating reserves, supply of information, etc. In such cases, the following shall be clearly stated: |
| (a) | At least three operating methods with different risk and return structures shall be suggested at least once every half-year; |
| (b) | Information needed for a participant to choose a method of operating reserves shall be provided, such as information on the probability of making profits and losses for each operating method; |
| 5. | Matters concerning early withdrawal. In such cases, early withdrawal shall be permitted when a ground prescribed by Presidential Decree, such as purchases of housing, occurs; |
| 6. | Matters relating to subparagraphs 1 through 3 and 6 through 10 of Article 12; |
| 7. | Other matters prescribed by Presidential Decree to operate the defined contribution plan. |
CHAPTER IV RETIREMENT PENSION TRUSTEES AND THEIR SERVICES
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| Article 14 (Registration of Retirement Pension Trustees) |
Any person falling under any of the following subparagraphs who wishes to be a retirement pension trustee shall register him/herself with the Minister of Labor after meeting requirements prescribed by Presidential Decree, such as financial soundness, personnel and physical resource requirements: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9039, Mar. 28, 2008>
| 1. | An investment trader, investment broker, or collective investment business entity under the Financial Investment Services and Capital Markets Act; |
| 4. | Deleted; <Act No. 8635, Aug. 3, 2007> |
| 6. | The Korean Federation of Community Credit Cooperatives under Article 54 (1) of the Community Credit Cooperatives Act; |
| 7. | Any other person corresponding to those under subparagraphs 1 through 6 and prescribed by Presidential Decree. |
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| Article 15 (Awarding of Contract on Operational Management Services) |
| (1) | Each employer who has set up a retirement pension plan shall award a contract with a retirement pension trustee on the provision of the following services (hereinafter referred to as "operational management services"): Provided, That services mentioned in subparagraph 2 shall be limited to defined benefits plans: |
| 1. | Providing the employer or participants with the methods of operating reserves and information on each operating method; |
| 2. | Designing a pension plan and conducting pension accounting; |
| 3. | Recording, keeping, and informing the current operational state of reserves; |
| 4. | Informing a retirement pension trustee carrying out asset management services pursuant to Article 16 (1), of the operating method chosen by the employer or participants; |
| 5. | Any other service prescribed by Presidential Decree to properly carry out operational management services. |
| (2) | A retirement pension trustee carrying out operational management services pursuant to paragraph (1) may have a person who meets the requirements prescribed by Presidential Decree, such as personnel and physical resource requirements, carry out some of the services prescribed by Presidential Decree. |
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| Article 16 (Provision of Asset Management Services) |
| (1) | Each employer who has set up a retirement pension plan shall award a contract with a retirement pension trustee on the provision of the following services (hereinafter referred to as "asset management services"): |
| 1. | Setting up and managing an account; |
| 2. | Receiving contributions; |
| 3. | Keeping and managing reserves; |
| 4. | Following instructions related to the operation of the reserves which are delivered by a retirement pension trustee providing operational management services; |
| 6. | Any other service prescribed by Presidential Decree to properly carry out asset management services. |
| (2) | If an employer intends to award a contract as prescribed in paragraph (1), it shall be made in terms of an insurance contract or trust contract prescribed by Presidential Decree with his/her workers as the insured or beneficiaries. |
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| Article 17 (Provision of Operational Management Services) |
| (1) | Each retirement pension trustee shall fulfill his/her duty of due care as a good manager. |
| (2) | Each retirement pension trustee shall suggest methods of operating reserves meeting the following requirements: |
| 1. | Information on the operating methods shall be readily obtainable and understandable; |
| 2. | It shall be easy to switch among the operating methods; |
| 3. | The methods of and procedures for evaluating the performance of operation of reserve shall be transparent; |
| 4. | In cases of defined contribution plans and individual retirement accounts, at least one operating method guaranteeing the payment of principal and interest as prescribed by Presidential Decree shall be included; |
| 5. | They shall be in line with the operating methods and standards prescribed by Presidential Decree, such as diversified investment, to ensure the stable operation of the reserves. |
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| Article 18 (Cancellation of Registration of Retirement Pension Trustees and Transfer Orders) |
| (1) | If a retirement pension trustee falls under any of the following subparagraphs, the Minister of Labor may cancel its registration: Provided, That where it falls under subparagraph 1 or 2, he/she shall cancel its registration: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. | Where the retirement pension trustee is dissolved; |
| 2. | Where the retirement pension trustee obtain registration under Article 14 by fraudulent or other illegal means; |
| 3. | Where the retirement pension trustee fails to meet the requirements for registration under Article 14; |
| 4. | Where the retirement pension trustee fails to comply with an order issued by the Minister of Labor or the Financial Services Commission pursuant to Article 23. |
| (2) | If the Minister of Labor deems it necessary for protecting workers' entitlement to receive benefits when registration is cancelled pursuant to paragraph (1), he/she may order the retirement pension trustee whose registration is cancelled to transfer all or some of its services to another retirement pension trustee. In such cases, the Minister of Labor shall obtain the consent of the retirement pension trustee to whom such all or some of such services are transferred. |
CHAPTER V DUTIES AND SUPERVISION
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| Article 19 (Duties of Employers) |
| (1) | Each employer who has set up a retirement pension plan shall provide its participants with training at least once every year on matters prescribed by Presidential Decree, such as the operating status of the retirement pension plan of the business concerned. In such cases, the employer may entrust such training with the retirement pension trustee. |
| (2) | No employer who has set up a retirement pension plan shall commit any of the following acts: |
| 1. | Awarding a contract to carry out operational management services and asset management services for the purpose of benefiting the employer itself or a third person; |
| 2. | Any other act prescribed by Presidential Decree which undermines the proper operation of a retirement pension. |
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| Article 20 (Duties of Retirement Pension Trustees) |
| (1) | Each retirement pension trustee shall observe this Act, orders issued under this Act and the terms and conditions of a contract under Articles 15 (1), 16 (1) and 25 (3) and shall carry out his/her services in good faith for the sake of participants. |
| (2) | No retirement pension trustee shall engage in any of the following acts without justifiable grounds: |
| 1. | Refusing to sign a contract to provide operational management services under Articles 15 (1) and 25 (3); |
| 2. | Refusing to sign a contract to provide asset management services under Articles 16 (1) and 25 (3); |
| 3. | Compelling a contract to be signed with a particular retirement pension trustee; |
| 4. | Any other act prescribed by Presidential Decree as likely to undermine the interests of an employer or participant. |
| (3) | No retirement pension trustee providing operational management services shall engage in any of the following acts: |
| 1. | Promising to bear all or some of the losses suffered by a participant or an employer at the time of signing a contract; |
| 2. | Promising to offer special benefits to a participant or an employer; |
| 3. | Using personal data such as the name, address, etc. of a participant beyond the extent necessary to perform duties related to the operation of retirement pensions; |
| 4. | Suggesting a particular operating method to a participant or an employer for the purpose of benefiting the retirement pension trustee, himself/herself or a third person. |
| (4) | Each retirement pension trustee operating individual retirement accounts pursuant to Article 25 (1) shall provide the participants with training at least once every year on matters prescribed by Presidential Decree, such as the operating status of the retirement pension plan of the business concerned. |
| (5) | Each retirement pension trustee shall submit details on the performance of retirement pensions and individual retirement accounts to the employers (limited to the performance of retirement pensions), the Ministry of Labor and the Financial Services Commission within three months from the end of each business year, as prescribed by Ministerial Decree of Labor. <Amended by Act No. 8863, Feb. 29, 2008> |
| (6) | Where any retirement pension trustee intends to establish or amend the terms and conditions or standard forms of contract relating to the signing of a contract pursuant to Articles 15 and 16 (hereinafter referred to as "terms and conditions, etc."), it shall, in advance, report such establishment or amendment to the Financial Services Commission: Provided, That where it is determined by the Financial Services Commission as having no adverse effect on the rights, interests and duties of workers or employers, it may report thereon to the Financial Services Commission within ten days from such establishment or amendment. <Added by Act No. 7636, Jul. 29, 2005; Act No. 8863, Feb. 29, 2008> |
| (7) | Each retirement pension trustee shall make public the rate of returns on reserves, commissions, etc. at the end of each year, as prescribed by the Financial Services Commission. <Added by Act No. 7636, Jul. 29, 2005; Act No. 8863, Feb. 29, 2008> |
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| Article 21 (Duties, etc. of Government) |
| (1) | The Government shall provide a support system to promote retirement pension plans. |
| (2) | The Government may take necessary measures to ensure the sound establishment and development of retirement pension plans, such as supporting research projects in collaboration with workers' or employers' groups, or agencies or organizations involved in retirement pension business. |
| (3) | The Government shall endeavor to take necessary measures to protect workers' entitlement to receive benefits, such as measures for guaranteeing payment of retirement pensions. |
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| Article 22 (Supervision over Employers) |
| (1) | If any employer violates this Act or rules for retirement pension in relation to the establishment, operation, etc. of a retirement pension plan, the Minister of Labor may order such employer to rectify the violation within the prescribed deadline. |
| (2) | If any employer fails to comply with an order for rectification within the deadline under paragraph (1), the Minister of Labor may order suspension of the operation of the retirement pension plan. |
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| Article 23 (Supervision over Retirement Pension Trustees) |
| (1) | If any retirement pension trustee commits violates this Act, the Minister of Labor may order such retirement pension trustee to rectify the violation within the prescribed deadline. |
| (2) | If any retirement pension trustee fails to comply with an order for rectification under paragraph (1), the Minister of Labor may order services provided under this Act to be transferred to another retirement pension trustee. |
| (3) | The Minister of Labor may order a retirement pension trustee to submit materials or make a report in relation to the services provided under this Act. |
| (4) | In order to ensure the stable operation of retirement pension plans and protect workers' entitlement to receive benefits, the Financial Services Commission may supervise the services of retirement pension trustees over prescribed by Presidential Decree, take measures prescribed by Presidential Decree, such as issuing an order for rectification within the prescribed deadline if a retirement pension trustee violates Article 20, and authorize the Governor of the Financial Supervisory Service to investigate the services, property, etc. of a retirement pension trustee. <Amended by Act No. 8863, Feb. 29, 2008> |
| (5) | If terms and conditions, etc. reported by a retirement pension trustee pursuant to Article 20 (6) are in contravention of this Act, the Financial Services Commission may allow the Governor of the Financial Supervisory Service to issue an order to change or supplement the terms and conditions, etc. <Added by Act No. 7636, Jul. 29, 2005; Act No. 8863, Feb. 29, 2008> |
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| Article 24 (Hearings) |
The Minister of Labor shall hold a hearing if he/she intends to cancel a registration pursuant to Article 18 (1).
CHAPTER VI SUPPLEMENTARY PROVISIONS
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| Article 25 (Establishment, Operation, etc. of Individual Retirement Accounts) |
| (1) | Any retirement pension trustee may operate individual retirement accounts. |
| (2) | Any person falling under any of the following subparagraphs may set up an individual retirement account: |
| 1. | A person who has received lump-sum benefits under a retirement benefit scheme; |
| 2. | A person prescribed by Presidential Decree as requiring a stable source of old-age income; |
| (3) | Articles 15 and 16 shall apply mutatis mutandis in providing operational management services and asset management services for individual retirement accounts. In such cases, "employer" shall be construed as a "participant". |
| (4) | In operating a reserve, the following shall be complied with: |
| 1. | A participant shall be allowed to choose a method of operating the reserve and change the operating method at least once every half-year; |
| 2. | A retirement pension trustee shall suggest not less than three operating methods with different risk and return structures, at least once every half-year; |
| 3. | A retirement pension trustee shall provide information necessary for a participant to choose a method of operating reserves, such as information on the probability of making profits and losses for each operating method. |
| (5) | Matters concerning eligibility requirements for recipients for each type of benefit of an individual retirement account as well as early withdrawal shall be prescribed by Presidential Decree. |
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| Article 26 (Special Cases for Businesses Employing Less Than Ten Workers) |
| (1) | In cases of a business employing less than ten ordinary workers, if the employer requires all of its workers set up an individual retirement account under Article 25 with the consent of the workers' representative, it shall be deemed to have set up a retirement benefit scheme, notwithstanding Article 4 (1). |
| (2) | In setting up an individual retirement account under paragraph (1), the following shall be complied with: |
| 1. | The employer shall obtain the consent of the workers' representative in selecting a retirement pension trustee; |
| 2. | The employer shall contribute, in cash, at least 1/12 of the total annual wages of a participant; |
| 3. | A participant shall be allowed to contribute additional amounts, apart from those contributed by the employer; |
| 4. | The employer shall regularly pay contributions at least once every year; |
| 5. | Where the employer has not fully paid contributions for a participant at the time the participant withdraws from the plan, the employer shall pay such contributions in arrears within 14 days from the date of his/her withdrawal; |
| 6. | Any other matter prescribed by Presidential Decree in order to protect workers' entitlement to receive benefits. |
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| Article 27 (Abolition and Suspension of Retirement Pension Plans) |
| (1) | In cases of abolition of a retirement pension plan or suspension of its operation, the retirement allowance system under Chapter II shall be applied to the period after the abolition or during the period of the suspension. |
| (2) | If a participant is paid benefits due to the abolition of a retirement pension plan or the suspension of its operation, he/she shall be deemed to be paid benefits by the interim settlement pursuant to Article 8 (2). In such cases, calculation of the period subject to the interim settlement and other necessary matters shall be prescribed by Presidential Decree. |
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| Article 28 (Cooperation) |
If the Minister of Labor deems it necessary for implementing this Act, he/she may request related agencies, such as the Financial Services Commission, to submit materials. In such cases, the agencies requested to submit materials shall not refuse this request unless they have any justifiable ground. <Amended by Act No. 8863, Feb. 29, 2008>
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| Article 29 (Reporting and Investigation) |
| (1) | The Minister of Labor may ask employers to report the implementation status, etc. of their retirement pension plans or to submit related documents or to require relevant persons come forward within the extent necessary to implement this Act. |
| (2) | If the Minister of Labor deems it necessary for implementing this Act, he/she may authorize his/her officials to enter a workplace implementing a retirement pension plan and ask questions to persons concerned or investigate documents, such as accounting books. In such cases, the officials shall carry a certificate indicating their authority and produce it to the related persons. |
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| Article 30 (Entrustment and Delegation of Authority) |
| (1) | The Minister of Labor may entrust part of his/her authority under this Act to the Financial Services Commission or delegate it to the head of a regional labor office, as prescribed by Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) | The Financial Services Commission may entrust part of his/her authority under this Act to the Governor of the Financial Supervisory Service, as prescribed by Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008> |
CHAPTER VII PENAL PROVISIONS
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| Article 31 (Penal Provisions) |
Any person who fails to pay a retirement allowance in violation of Article 9 shall be punished by imprisonment for not more than three years or by a fine not exceeding 20 million won.
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| Article 32 (Penal Provisions) |
Any person who has set up differentiated retirement benefit scheme within the same business in violation of Article 4 (2) shall be punished by imprisonment for not more than two years or by a fine not exceeding ten million won.
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| Article 33 (Penal Provisions) |
Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding five million won:
| 1. | A person who fails to obtain the consent of a workers' representative in violation of Article 4 (3); |
| 2. | A person who fails to seek opinions from or obtain the consent of a workers' representative in violation of Article 4 (4). |
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| Article 34 (Joint Penal Provisions) |
If the representative of a corporation or an agent, an employee or other servant of a corporation or an individual commits an offense prescribed in Articles 31 through 33 in connection with the business of the corporation or individual, not only shall such offender be punished, but the corporation or individual shall also be punished by the fine prescribed in the relevant Articles.
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| Article 35 (Fines for Negligence) |
| (1) | Any person who fails to perform duties of an employer or a retirement pension trustee prescribed in Article 19 (1) or 20 (2) through (4) shall be punished by a fine for negligence not exceeding ten million won. |
| (2) | Any person who fails to perform duties of an employer or a retirement pension trustee prescribed in Article 19 (2) or 20 (1) and (5) shall be punished by a fine for negligence not exceeding five million won. |
| (3) | Fines for negligence under paragraphs (1) and (2) shall be imposed and collected by the Minister of Labor, as prescribed by Presidential Decree. |
| (4) | Any person who is dissatisfied with the disposition of a fine for negligence under paragraph (3) may raise an objection to the Minister of Labor within 30 days from the date he/she is notified of the disposition. |
| (5) | Upon receiving an objection under paragraph (4) from a person subject to the disposition of a fine for negligence under paragraph (3), the Minister of Labor shall notify, without delay, the competent court of the objection, and the court so notified shall submit the case to trial for the fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act. |
| (6) | If neither an objection is filed nor the fine for negligence paid within the period prescribed in paragraph (4), such fine for negligence shall be collected in accordance with the precedents on dispositions of national taxes in default. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on December 1, 2005: Provided, That for businesses ordinarily employing not more than four workers, it shall take effect on the date prescribed by Presidential Decree during the period from 2008 to 2010.
Article 2 (Effective Term of Retirement Insurance, etc.)
| (1) | Where an employer purchases a retirement insurance policy or subscribes to a lump-sum retirement trust (hereinafter referred to as "retirement insurance policy, etc.") prescribed by Presidential Decree with its workers as the insured or beneficiaries which will ensure its retiring workers receive lump-sum benefits or annuities, such employer shall be deemed to set up a retirement allowance system under Article 8 (1): Provided, That the amount of lump-sum benefits paid under the retirement insurance policy, etc. shall not be less than the amount of retirement allowances prescribed in Article 8 (1). |
| (2) | The provisions of paragraph (1) shall have validity only to employers who have purchased retirement insurance policy, etc. at the time this Act enters into force, and its term of validity shall be by December 31, 2010. |
Article 3 (Special Cases for Benefits and Contributions of Businesses Ordinarily Employing Not More Than Four Workers)
Notwithstanding Article 8 (1), subparagraph 4 of Article 12, and subparagraph 1 (a) of Article 13, the amounts of retirement allowances, benefits under a defined benefits plan, and contributions for a defined contribution plan to be borne or paid by the employers of businesses ordinarily employing not more than four workers may be raised on a phased basis within the scope of not less than 50/100 but not more than 100/100 of the level prescribed in the said provisions, as prescribed by Presidential Decree. Article 4 (Transitional Measures Concerning Preferential Payment for Retirement Allowances)
| (1) | Notwithstanding Article 11 (2), for workers who retired before December 24, 1997, retirement allowances for their continuous service after March 29, 1989 shall be subject to preferential payment. |
| (2) | Notwithstanding Article 11 (2), for workers who were employed before December 24, 1997 and who retire after December 24, 1997, the sum of the retirement allowances for their continuous service from March 29, 1989 to December 23, 1997 and the retirement allowances for the final three years of their continuous service after December 24, 1997 shall be subject to preferential payment. |
| (3) | A retirement allowance subject to preferential payment under paragraphs (1) and (2) shall be a prorated amount equal to average wages earned for 30 days for each year of continuous service. |
| (4) | A retirement allowance subject to preferential payment under paragraph (1) and (2) shall not exceed an amount equal to average wages earned for 250 days. |
Article 5 (Transitional Measures Concerning Retirement Allowance System)
Any retirement allowance system set up under Article 34 (1) of the previous Labor Standards Act and retirement allowances settled and paid in advance at the time this Act enters into force shall be deemed to have been set up or paid under this Act. Article 6 Omitted.
Article 7 (Relationship with other Acts or Subordinate Statutes)
Where a retirement allowance system under Article 34 of the previous Labor Standards Act or the provisions thereof are cited in other Acts or subordinate statutes at the time this Act enters into force, this Act or the corresponding provisions of this Act shall be deemed to have been cited in place of the previous provisions if provisions corresponding thereto exist in this Act.
ADDENDUM<Act No. 7636, Jul. 29, 2005>
This Act shall enter into force on December 1, 2005.
ADDENDA<Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA<Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one and a half years after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA<Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM<Act No. 9039, Mar. 28, 2008>
This Act shall enter into force on the date of its promulgation.
