The government has initiated its first review of the 'Blue Seed' retirement pension system designed for workers in small and medium enterprises (SMEs). This assessment aims to ensure the stability of fund management and internal controls ahead of an expansion of eligible participants.
On May 11, the Ministry of Employment and Labor announced that it, along with the Financial Supervisory Service, will conduct a comprehensive review of the Blue Seed fund over the next two weeks. This marks the first evaluation since the system was introduced in 2022.
The review will cover not only the fund's performance but also its risk management systems, contract and account management, subscriber protection measures, and internal control operations. The government plans to examine issues of fairness and transparency, particularly regarding potential harm to subscribers' interests, improper inducements, and the fee structure.
The Blue Seed program was established to secure retirement income for SME workers. Currently, it has approximately 170,000 subscribers, with total assets around 1.6 trillion won. Over the past three years, the annual return rate has consistently ranged between 6% and 8%.
The government plans to gradually expand the eligibility criteria. Starting in July, businesses with fewer than 50 employees will be able to enroll, followed by those with fewer than 100 employees in January 2027. Revisions are also being pursued to allow special employment workers and freelancers to participate in the subscriber contribution accounts.
Based on the findings of this evaluation, the Ministry of Labor will recommend operational improvements and develop measures to enhance the system if any deficiencies are identified.
Seo Myung-seok, Director of Labor Standards Policy, stated, "This comprehensive evaluation will serve as an opportunity to thoroughly examine the operation of the Blue Seed program ahead of its reform. We will continue to manage operational performance and risks through regular evaluations."
* This article has been translated by AI.
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