Proposals to amend the Employment Retirement Benefits Security Act were recently presented to South Korea’s parliament.

Highlights

• Requirements to set up a pension plan would be phased in by company size.
• Employers with 300 or more employees (full-time equivalents) that provide a defined benefit pension plan must establish a pension committee and an Investment Policy Statement.
• Employers must provide pension education at least once per year. The external institutions qualified to provide education on pension issues would be specified.
• A retirement pension fund plan operated by the Korea Workers’ Compensation and Welfare Service would be provided for small- and medium-sized companies with 30 or fewer employees (full-time equivalents). 

Related resources

• Bill to revise ERSA (Korean) (Parliament, 24 Aug 2020)
• Bill to revise ERSA (Korean) (Parliament, 23 Jul 2020)