A type of retirement pension in which each employee concludes their own contract with the pension provider.
When an employer with fewer than 10 regular employees subscribes to an IRP (Corporate IRP) through the consent of employees, it is recognized as having established retirement pension system.
Operation is similar to that of the DC plan.
The employer provides contributions equivalent to at least 1/12th of the average annual salary of each subscriber into their IRP plan, and the subscriber may make additional contributions beyond those provided by the employer.
Responsibility for operating results lies with the employee.
Adoption and operation of the plan is straightforward, as there is no need to enact regulations and report to the Ministry of Labor.
This plan is protected under the Depositor Protection Act only for reserves invested in financial products subject to depositor protection. In such cases, protection is limited to KRW 50 mil per person, which is apart from the depositor protection limit for your other financial products. The amount in excess of KRW 50 mil is not subject to protection.