SME retirement pension fund opens to workplaces under 100 employees — 1 January 2027 | under 50 until then
The SME retirement pension fund is a pooled fund in which the Korea Workers' Compensation and Welfare Service invests the contributions of many small companies together. Before the amendment it was open to workplaces of 30 or fewer; under the addenda it is under 50 for the second half of 2026 and under 100 from 1 January 2027. Members may receive State support for part of the employer contribution and operating costs within the budget.
Conditions used in the video
- Effective date (100 threshold)
- 2027-01-01
- Promulgated
- 2026-03-17
- Basis
- Employee Retirement Benefit Security Act Article 2(14) · Article 23-14 · Addenda Article 2
- Before
- workplaces of 30 or fewer
- 2026-07-01 to 12-31
- under 50 (addenda special provision)
- From 2027-01-01
- under 100
Results
- Eligible workplaces
- 30 or fewer → under 50 (H2 2026) → under 100 (2027)
- State support
- part of the employer contribution and operating costs (within the budget)
- Support conditions
- set by the Minister of Employment and Labor
- Management
- the Welfare Service pools many companies' contributions
- Platform and freelance workers
- added as an enrollment target
Why it works this way
The SME retirement pension fund lets small companies skip choosing their own pension provider: the Korea Workers' Compensation and Welfare Service pools the contributions of many companies into one fund. Before the amendment, only workplaces with 30 or fewer regular employees could join.
Employee Retirement Benefit Security Act Article 2(14) · Addenda Article 2.
- Before30 or fewer
- 2026-07-01 to 12-31under 50 (special provision)
- From 2027-01-01under 100
The main text says under 100; the addenda hold it at 50 for the second half of 2026 only.
Fund members may receive State support for part of the employer contribution and operating costs within the budget. The conditions and level are set by the Minister of Employment and Labor. Platform and freelance workers were added as an enrollment target.
The amendment promulgated 2026-03-17 has three effective dates.
- 2026-07-01main text in force · special provision at 50
- 2026-09-18five-year penalty for unpaid severance (Article 43)
- 2027-01-01fund open to under 100
Workplaces with 50 to 99 employees can join from January 2027.
This video and page describe a measure that has been promulgated but has not taken effect. Details may change through a decree or notice.
In short, from 1 January 2027 workplaces under 100 employees can join the SME retirement pension fund, with State support available.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Employee Retirement Benefit Security Act Article 2(14) (SME retirement pension fund scheme)
In force Main text 2026-07-01 · the 100 threshold from 2027-01-01 (Addenda Article 2)
A retirement pension scheme that employers of businesses with fewer than 100 regular employees may join. Under Addenda Article 2, fewer than 50 from 2026-07-01 to 12-31.
What this means
The door widens from 30 to 100. January 2027 is the first month for workplaces of 50 to 99.
Employee Retirement Benefit Security Act Article 23-14 (Support)
In force Effective 2026-07-01
The State may, within the budget, support part of the contributions and operating costs of employers who join the fund; the conditions and level are set by the Minister of Employment and Labor. Includes promoting enrollment of platform and freelance workers.
What this means
Joining the pooled fund can bring some State money. Check the notice for the conditions.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Severance Pay Tax Calculator
Frequently asked
When can a company with 60 employees join?
From 1 January 2027. In the second half of 2026 the addenda limit membership to workplaces under 50.
How much is the State support?
The Act allows support for part of the employer contribution and operating costs within the budget; the conditions and level are set by the Minister of Employment and Labor.
How is it different from an ordinary retirement pension?
Instead of each company choosing a provider, the Welfare Service pools many companies' contributions into a single fund.
Is the five-year severance penalty on the same date?
No. It is in the same amendment, but the five-year penalty for unpaid severance takes effect on 18 September 2026.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.