I.         Collection method from monthly salary payment

1.       National Pension Fund ( “NPF” )

-          It does not impose by the actual (or current) salary level and the withholding amount is notified from NPF when company is filed to NPF.

-          Based on current annual salary (reporting level), the basic salary level will be changed and charged from July this year to June next year.

(Current payment is not directly reflected the NPF payment level)

2.       National Health Insurance (“NHI”)

-           If Company withhold and pay the NHI which is based on the current salary level each month, no need to settle the NHI when the employee retired.

-           Otherwise if Company withhold and pay the NHI which is based on the NHI's notice amount each month, company have to settle the final payment when the employee retired.

-           In case company operate the construction site, company have to submit the report of business place attached the construction contract.

3.       Employment Insurance

-           Based on the current salary level, company have to withhold and pay it each month

( In case the Construction and logging business, company have to pay once a year by itself )

4.       Workman's Compensation and Employee Liability ( “WCEL”)

-           It have to pay by employer and no need to withhold each month

II.        Examples

1.       In case employee works more than two(2) companies, how to withhold and pay the social security insurance.

-           NPF : have to withhold and pay each entities ( Limitation : KRW 3.98 Million per month )

-           NHI : have to withhold and pay each entities ( Limitation : KRW 78.1 Million per month )

-           Employment Insurance : Have to withhold and pay the major entity

-           WCEL : have to pay each entities

2.       Part-time job

-           Students who are engaged the short term and part-time job(not work for the full day) have to join only the WCEL.

-           Before the graduation of school and joining the company, he/she have to pay all of the social security insurance.

-           In case of schooling at night and on-line university, he/she have to pay all of the social security insurance due to the full-time job.