Below are the basic descriptions of various retirement options available to Employers in Korea.

  Retirement Pay: Employer shall pay Employees, who retire, 30 days or more of average wages for every year of their consecutive service as retirement pay. Employer may, in the case of an Employee demand, pay the Employee the amount of retirement pay corresponding to the Employee's consecutive service period earlier than Employee's actual retirement (Article 8 of the Employee Retirement Benefit Security Act).

  Defined Benefit Retirement Pension Plan: This refers to a retirement pension plan under which what an Employee will receive is determined in advance. An Employer who intends to set up a defined benefit retirement pension plan shall prepare defined benefit retirement pension rules containing certain matters provided in the Employee Retirement Benefit Security Act with the consent of an Employee representative and file them with the Minister of Labor (Article 12 of the Employee Retirement Benefit Security Act).

  Defined Contribution Retirement Pension Plan: This refers to a retirement pension plan under which the level of contributions an Employer must make to pay the benefits is determined in advance. An Employer who intends to set up a defined contribution retirement pension plan shall prepare defined contribution retirement pension rules containing certain matters provided for in the Employee Retirement Benefit Security Act with the consent of an Employee representative and file them with the Minister of Labor. When this plan is selected, an Employer shall contribute at least the amount equivalent to one twelfth of the total annual wage of the Employee (pension holder) in cash. An Employee may contribute an additional amount in cash in addition to Employer's contribution, but it is not Employee's obligation or a condition for the pension.