Korea Workers' Compensation and Welfare Service, Korea Deposit Insurance Corp. join hands to build dual safety net for SME retirement pensions

The Korea Workers' Compensation and Welfare Service and the Korea Deposit Insurance Corp. have joined forces to better protect the retirement pensions of workers at small and medium-sized enterprises.

The partnership aims to build a cooperative framework that can swiftly safeguard pension reserves and the benefit rights of members enrolled in Pureun Ssiat — the country's only fund-type retirement pension system for small businesses — even if an unexpected crisis hits a financial institution.

The Korea Workers' Compensation and Welfare Service signed an MOU with the Korea Deposit Insurance Corp. on Thursday to strengthen a dual safety net for retirement benefits for workers at small and medium-sized enterprises. The agreement is designed to reinforce the public safety net protecting pension benefit rights and ensuring stable retirement income for those workers.

Under the MOU, the two agencies agreed to share necessary information in a timely manner so that deposit insurance payouts and contract transfers can be processed quickly when emergencies arise, such as the insolvency of a financial institution. They also plan to build a secure information-sharing system in line with personal data protection laws to safeguard the rights and interests of pension subscribers.

The agencies will maintain their cooperative framework during normal times as well, enabling an immediate response when a crisis occurs, and agreed to continuously expand joint projects.

Pureun Ssiat, operated by the Korea Workers' Compensation and Welfare Service, is the country's only fund-type retirement pension system targeting workplaces with 50 or fewer employees. Participating businesses receive benefits including fee waivers and financial support, and the fund has posted annual returns of around 7 percent in recent years through stable asset management. It has established itself as a leading public retirement pension system supporting retirement asset accumulation for workers at small and medium-sized enterprises.

The Korea Deposit Insurance Corp. is responsible for protecting depositors and maintaining financial market stability when financial institutions become insolvent. With the MOU now linking retirement pension protection to that mandate, the public safety net guarding citizens' retirement assets is expected to be significantly strengthened.

Korea Workers' Compensation and Welfare Service President Park Jong-gil said the agreement is "a starting point for public cooperation to better protect the precious retirement pensions of workers at small and medium-sized enterprises." He added that the agency would "work closely with the Korea Deposit Insurance Corp. to create an environment where people can entrust their retirement pensions with confidence and support a stable retirement."