BUSINESS MERGERS AND ACQUISITIONS ACT Article 15

In the course of a merger/consolidation by a company, any sum of the pension reserves appropriated by the dissolved company remaining after paying pension and, if the dissolved company decides as such, making severance pay to the labor not retained and any labor declining the continued employment shall be totally transferred from the designated account of the labor pension reserves monitor commission of the company to that of the newly incorporated or surviving company.In the transfer of the entire business or any part of it by a company as a result of the acquisition of assets or division, the transferor company or the divided company, upon having paid pension to the labor not retained and then made the severance pay to any labor declining the continued employment(if the company decides as such), shall make the pro rata transfer of the remaining sum of the pension reserves appropriated for the labors who are transferred together with the business or the assets and applicable for the period of service of the pension system under Labor Standards Act to the designated account of the labor pension reserves monitor commission of the transferee company.Before the transferor company or the divided company appropriates the labor pension reserves proportionate to that required under the preceding paragraph, the labor pension reserves shall reach the amount specified as the minimum in filing the application for a suspension of appropriation under the applicable labor laws and ordinances; provided, however, that in case the labors are applicable for the period of service of the pension system under Labor Standards Act and already totally transferred to the transferee company, the remaining sum of the pension reserves shall be transferred to the designated account of the labor pension reserves monitor commission of the transferee company.