Working in Korea as a foreigner?
Met a good(?) proper(?) employer who is willing to provide the full package of social insurance schemes (national pension, health insurance, employment insurance, workers’ compensation insurance) for you? Even you are a foreigner, if you have the right type(s) of visa and employment opportunity, you are subject for those schemes just like every other Korean citizens.

What about retirement pension? Yes, also you are entitled for this if you worked for a year or longer at a company, 15 hours or longer per week as a average of 4 weeks.

Though I get a headache over those things, I decided to study what I have for my pension which was set up by the company initially. It is something called DC Pension.

What is DC Retirement Pension?
DC stands for Defined Contribution. The employer (my boss) reserves 1/12 of my annual total wage in the account each year and I can invests the reserve to receive the sum when I retire from the company.

Can I get the lump sum before I retire?
– Yes, as long as I qualify for the legal requirements such as buying my first house or going through medical treatment over 6months (the subject extends to my family members).

Can I contribute more?
– Yes, an additional amount can be reserved if I want.

What is the pension option?
– Pensions will be paid when I am aged 55 or above, if my contribution period is 10years or more, and the pension payment duration will be 5 years or more.

What are the advantages of this DC system?
– Each employee can manage the asset directly, by reserving 100% of the retirement benefits in an external bank, employees’ rights to receive the benefits are guaranteed.

What if you are like me (being ignorant in anything that involves finance and accounting), and leave this system running automatically without managing it?
– Once the investment comes to the maturity, the amount is automatically operated as a cash equivalent for 6 weeks. If there is no involvement from you on the operation instruction, the maturity funds will be re-deposited using the previously registered default option.

Source: Wooribank, https://spib.wooribank.com/pib/Dream?withyou=ENENG0079