(1) A retirement pension trustee providing operational management services shall include at least one type of operation specified in the following subparagraphs in the default option management plan and obtain approval from the Minister of Employment and Labor:
1. A type of operation that guarantees the principal and interest of the reserve;
2. A type of operation that is collective investment securities of a collective investment scheme under Article 229 of the Financial Investment Services and Capital Markets Act, which meets the requirements prescribed by Presidential Decree, such as where any of the following operational details in the investment prospectus is clearly stated in the operation plan:(a) Details of operation including adjustment of asset allocation or the risk level in the direction of increasing the proportion of assets with low investment risk as the operation period elapses after a prior setting of the targeted investment time;(b) Details of operation including the risk management of collective investment property and pursuit of a long-term value growth through diversification of assets with different investment risks and periodical adjustment of asset allocation in consideration of the financial market conditions, the changing value of each collective investment property, etc.;(c) Details of operation to minimize the possibility of loss and to pursue short-term stable earnings of the collective investment property through investment in short-term financial instruments, etc.;(d) Details of operation that meet the requirements prescribed by Ordinance of the Ministry of Employment and Labor, such as investment in the infrastructure business under the public investment plans and related projects and policies implemented by the State and local governments under the relevant statutes or regulations including the Act on Public-Private Partnerships in Infrastructure;(e) Other details of operation prescribed by Presidential Decree.
(2) Where a retirement pension trustee intends to obtain approval from the Minister of Employment and Labor pursuant to paragraph (1), he or she shall undergo a prior deliberation by a deliberative committee of the Minister of Employment and Labor that is comprised of members, including retirement pension-related experts recognized to have extensive knowledge of and experience in retirement pension and asset management, according to the requirements prescribed by Ordinance of the Ministry of Employment and Labor.
(3) A retirement pension trustee providing operational management services shall present the default option management plan to an employer in accordance with the methods prescribed by Ordinance of the Ministry of Employment and Labor.
(4) The type of operation under paragraph (1) 2 shall maintain a reasonable balance between the possibility of loss and the expected earnings in a mid- to long-term perspective, and shall not have the cost including fees in excess of the expected earnings.
(5) An employer who has been presented a default option management plan under paragraph (3) shall establish a default option management plan for each business or workplace, and shall reflect it in the rules for defined contribution plan with the consent of the representatives of employees.[This Article Newly Inserted on Jan. 11, 2022]