Approval to establish an employee welfare fund corporation

Procedure

Procedure

1. 01

   1. Form the preparatory committee — The employer forms the fund corporation preparatory committee and entrusts it with the establishment work and the selection of the first directors and auditors. The committee is formed like the welfare fund council, with an equal number of members representing employees and the employer, between 2 and 10 each. Employee members are elected by employees, and employer members are the business representative and persons appointed by that representative (Act Article 52, paragraphs 2 and 3, and Article 55).

2. 02

   2. Draft the articles and decide the contribution — The committee drafts the fund corporation's articles as provided by Presidential Decree. If required items are missing from the articles or the content violates Articles 50, 51 or 62 of the Act, approval is not granted (Article 52, paragraph 6). The employer may contribute an amount decided by the welfare fund council based on 5% of the previous fiscal year's net profit before corporate or income tax, and may also contribute assets such as cash and securities (Article 61).

3. 03

   3. Submit the approval application and attachments — Submit the establishment approval application (Enforcement Rule, Form No. 7) to the Minister of Employment and Labor with the articles, a certificate of employment or other identity proof for committee members, a contribution confirmation or property list, and a business plan and budget (Enforcement Decree Article 30, paragraph 1). Missing or false documents are grounds for refusal.

4. 04

   4. Review and receipt of the approval certificate — The application is processed within 20 days of receipt, and upon approval it is entered in the establishment approval ledger and an establishment approval certificate is issued (Enforcement Decree Article 30, paragraphs 2 and 3). Approval must be granted unless a refusal ground set by law applies, such as missing items in the articles, so if a supplement request arrives, correct the documents within the deadline.

5. 05

   5. Register within 3 weeks and hand over the work — The committee must register the establishment at the main office location within 3 weeks of receiving the approval certificate, and the corporation comes into being upon registration. After registration it hands the work over to the fund corporation's directors without delay, and the committee is treated as the first welfare fund council when the corporation is formed (Act Article 52, paragraphs 7, 9 and 10).

Filing route

Filing route

Deadlines & processing notes

Deadlines & processing notes

Fees & official charges

Fees & official charges

Included in the basic fee — Initial document review, required-document guidance, basic form preparation, one filing support and responses to up to two supplement requests.

Conditional success fee — For this service, any conditional success fee may be separately agreed within the lawful service scope and stated in a written engagement agreement. No outcome is guaranteed.

Displayed amounts are starting estimates, not statutory or standard rates. The final fee is confirmed after consultation and document review in the engagement agreement. Government fees and actual expenses may change.

Basic documents

Basic documents

If registration is not completed within 3 weeks of receiving the approval certificate, the corporation is not formed, so set the registration schedule together with the approval. Missing items in the articles or provisions that violate the Act are grounds for refusal, so check the articles once more before filing.