S. Korea Mulls Changes to Employee Retirement Benefit Security Act

A group of legislators have introduced proposed reforms (Korean) of South Korea’s Employee Retirement Benefit Security Act (ERBSA).

Highlights

• Key provisions would: Require all employers to adopt an ERBSA pension plan by 2026, with the mandate applying to large employers before smaller employers

• Place tighter restrictions on interim settlement regarding amounts and eligibility
  
• Require employers with at least 300 employees to update their investment policy statement at least every year
• Allow employers with no more than 30 employees to adopt pension funds approved by an employee representative
• Include specialized educational institutions in pension plan education programs for employees
• Impose fines of up to KRW 10 million on employers that fund less than the statutory requirement 

Related Resources

• Proposed reforms of the Employee Retirement Benefit Security Act (Korean) (Legislative Assembly, 11 June)