Enforcement Rule of the Privatization of Government-Owned Enterprises Act Article 13-1

After an employee has chosen the retirement pension system under the Labor Standards Act (hereinafter referred to as the new labor retirement system), he/she is not entitled to include his/her service seniority accumulated under the new labor retirement system into the calculation of his/her severance pay or service seniority settlement pay upon the privatization of the government-owned enterprise wherein he/she serves.After entering into force of the Labor Pension Act, if an employee has chosen for the adoption of the new labor retirement system, and has further chosen, pursuant to paragraph 1 of Article 11 of the Labor Pension Act, to retain his/her service seniority accumulated prior to his/her choice for the adoption of the new labor retirement system (hereinafter referred to as the service seniority accumulated under the old labor retirement system), his/her severance pay or his/her service seniority settlement pay shall be settled and paid in accordance with the Article 13 hereof upon the privatization of the government-owned enterprise wherein he/she serves; whereas, if he/she has chosen for adoption of the new labor retirement system, and has further settled his/her service seniority accumulated under the old labor retirement system in accordance with paragraph 3 of Article 11 of the Labor Pension Act, he/she is not entitled to claim again for his/her severance pay or service seniority settlement upon the privatization of the government-owned enterprise wherein he/she serves; provided, however, that if he/she has not chosen for adoption of the new labor retirement system, his/her severance pay or service seniority settlement pay shall be settled in accordance with Article 13 hereof accordingly upon the privatization of the government-owned enterprise wherein he/she serves.