Prohibited Conduct for a Retirement Plan Trustee 
Refusal of entering into a service agreement, etc.
- A retirement plan trustee shall not act in any of the following manners without justifiable grounds (Article 33(3) of the Act on the Guarantee of Workers’ Retirement Benefits, and Article 34(1) of the Enforcement Decree thereof):
· Refusal to enter into an operational management service agreement;
· Refusal to enter into an asset management service agreement;
· Demanding that the client enters into an agreement with a particular retirement pension trustee;
· Using the information obtained in the performance of duties related to the operation of the retirement pension plan, such as the instructions regarding the operating methods from the employer or the enrollees, for private gain or the gain of a third party;
· Requesting the employer or the enrollees to conclude a retirement pension agreement on the condition of giving financial advantages to them, such as extending the existing loans or granting new loans;
· Forcing a particular operating method on the employer or the enrollees;
· Providing the employer or the enrollees with a definite judgement or a judgement without reasonable grounds, with regards to a rise or fall in the value of a particular operating method;
· Promising a remarkably favorable condition deviating from the ordinary conditions in a operating method;
· Applying a different interest rate to each employer or enrollee on operating methods in which the payment of principal and interest is guaranteed, without any reasonable grounds; or
· Presenting to the employer or the employees a definite amount of returns, which are not fixed, on an operating method.
· The following conduct related to the management of the reserveaccording to the pre-designated management method
√ Managing with the approval of the pre-designatedmanagement method by fraudulent or other improper means;
√ Discriminating against enrollees, such as giving preference to certainenrollees to induce a large gap in yield
√ Providing information or giving notice by fraudulent or other improper means
Prohibited conduct related to operational management services
- A retirement plan trustee providing operational management services must not engage in any of the following activities (Article 33(4) of the Act on the Guarantee of Workers’ Retirement Benefits; Article 35(1) of the Enforcement Decree thereof; and Article 16(1) of Supervision Regulation of Retirement Pensions):
· Promising to cover the losses that may be incurred by the enrollees or the employer in entirety or in part at the time of signing a contract;
· Providing or promising any of the following extraordinary benefits to the employer or the enrollees, such as providing excessive supplementary services having economic values or bearing the expenses for which the employer or the enrollees are responsible.
1. Offering money or valuables in order to gain or maintain a contract;
2. Offering fee discounts not provided for or specified in the service agreements;
3. Paying for expenses for which the enrollees or the employer is responsible, in entirety or in part;
4. Paying interests on loans the employer or the enrollees obtained from the retirement pension trustee, on behalf of the employer or the enrollees;
5. Providing value-added services of economic value not specified in the service agreements;
6. Providing any of the following types of economic benefits, similar in nature as the benefits described in 1 to 5, inclusive:
√ Fully or partially covering expenses for which the employer or the enrollees are responsible;
√ Providing tangible or intangible assets with monetary value or economic benefits;
√ Offering favorable terms for financial transactions other than the retirement pension plan transactions, such as preferential interest rates on loans and deposits;
√ Offering preferential interest rates on retirement products whose performance reflects performance in non-retirement products;
√ Accepting to purchase goods and services from the employer or an interested party thereof in exchange for the award of a retirement plan contract.
· Using the personal information of the enrollees, including their names and addresses, beyond the extent necessary to perform duties related to the operation of the retirement pension plan; or
· Suggesting a particular operating method to the enrollees or the employer for private gain or the gain of a third party.
Penalties for noncompliance
- A retirement plan trustee in breach of the contractual rules or rules on operational management of the retirement pension plan may face a prison term of up to three years or a fine of up to KRW 30 million (Subparagraph 4 of Article 44 of the Act on the Guarantee of Workers’ Retirement Benefits).
- To ensure the stable operation of the retirement pension plan and protect the enrollees’ rights to receive benefits, the Financial Services Commission may supervise the retirement pension trustee over its operational management services and asset management services and take any of the following actions in the case where the retirement pension trustee fails to fulfill its duties regarding such services (Article 36(3) of the Act on the Guarantee of Workers’ Retirement Benefits, and Article 37(1) of the Enforcement Decree thereof):
· Request for warning against the retirement pension trustee or the executive concerned, or warning or reprimanding the employee concerned, reduction his/her wage, or suspension or removal from office;
· Issuance of a corrective order regarding the violation concerned;
· Recommendation of dismissal from office of the executive or suspension of performance of his/her duties; or
· Partial suspension of the business for a period of six months.