Labor Pension Act Article 13

For protecting employees' retirement payment, employers shall precisely calculate the appropriation rate of labor retirement reserve funds in accordance with such factors as the number, wages, seniority and turnover rate of those employees who are covered by the retirement mechanism in the Labor Standards Act and reserve their seniority prior to the application of the Act, and shall continuously appropriate labor retirement reserve funds sufficiently for each month in accordance with Paragraph 1 of Article 56 of the Labor Standards Act for five years to provide for employees' retirement payment.When an employer and an employee agree to pay off the retirement payment in accordance with Paragraph 3 of Article 11, it may be paid from the labor retirement reserve fund account established in accordance with Paragraph 1 of Article 56 of the Labor Standards Act.The retirement payments that shall be given to employees in accordance with Paragraph 4 of Article 11 shall be handled pursuant to Article 9 of the Act of Privatization of Government-Owned Enterprises.