Small Business Retirement Pension 'Pureun Seed' Proves Profitable... Certified Labor Attorneys Also Join Hands

Korea Workers' Compensation and Welfare Service and Korea Certified Labor Attorneys Association Sign Agreement
"Collaboration to Secure Retirement Income for SME Workers"

The Korea Workers' Compensation and Welfare Service (Director Park Jong-gil) is partnering with the Korea Certified Labor Attorneys Association to carry out a project aimed at securing retirement income for workers in small and medium-sized enterprises (SMEs).

On the 10th, the Korea Workers' Compensation and Welfare Service held a business agreement ceremony with the Korea Certified Labor Attorneys Association (President Park Ki-hyun) at the Korea Workers' Compensation and Welfare Service Seoul Joint Office, announcing their commitment to actively promote the enrollment in the SME Retirement Pension Fund System (Pureun Seed).

On the 10th, at the Seoul Joint Government Building of the Korea Workers' Compensation and Welfare Service, Park Jong-gil, Director of the Korea Workers' Compensation and Welfare Service (left), and Park Ki-hyun, President of the Korea Certified Labor Consultants Association, are holding a signing ceremony to promote the expansion of membership in the Small and Medium Enterprise Retirement Fund.

The Korea Certified Labor Attorneys Association, established in 1986, is a professional organization contributing to the development of labor-management relations and the establishment of industrial peace in the Republic of Korea. Over 5,800 certified labor attorneys nationwide are members and actively engaged.

Since September 2022, the Service has been operating 'Pureun Seed,' a fund-type retirement benefit system exclusively for small businesses with fewer than 30 employees. Despite its short operation period, as of the end of last year, there are over 23,000 enrolled workplaces, 110,000 enrolled workers, and fund reserves amounting to 860 billion KRW. Additionally, it has achieved a cumulative return rate of 14.7%, marking significant success as Korea's first fund-type retirement pension.

Through this agreement, the Service expects that Pureun Seed, combined with the Korea Certified Labor Attorneys Association's professional knowledge and excellent human and material networks, will create a great synergy effect in eliminating blind spots in retirement pensions. They plan to explore various cooperation methods for future system development.

Moreover, the Korea Certified Labor Attorneys Association has traditionally represented tasks such as protecting workers' working conditions and managing corporate personnel and labor affairs. Taking this business agreement as an opportunity, they empathize with Pureun Seed as a tailored retirement pension for SME workers and have decided to actively promote it.

Pureun Seed is increasing the adoption rate of retirement pensions in SMEs with fewer than 30 employees, which currently stands at 23.7%, through stable operation by the Service, convenient enrollment, financial support for low-income workers from employers and employees, and exemption from fees.

This pension fund is created from contributions paid by employers and is managed stably. It was introduced with the purpose of overcoming the low return rates of existing retirement pensions, which have only yielded 2.35% over the past five years, and to provide a secure retirement life for workers.

Park Jong-gil, Director of the Korea Workers' Compensation and Welfare Service, stated, “Pureun Seed has recorded an excellent annual return rate close to 7%, presenting a new direction in the retirement pension market, which had previously remained at low returns. We will continue efforts to improve the system and expand it so that both employers and workers can be satisfied.”

Workplaces with fewer than 30 employees wishing to enroll in Pureun Seed can do so through the Korea Workers' Compensation and Welfare Service Customer Center or the dedicated Pureun Seed website.