The Korea Workers' Compensation & Welfare Service is lowering the enrollment threshold for "Blue Seed," a public fund-type retirement pension, to broaden the retirement income safety net for small business workers, the self-employed, and platform workers.
The service said on the 6th that it expanded Blue Seed's eligibility last month from workplaces with 30 or fewer regular employees to those with fewer than 50 employees, and will extend it to workplaces with fewer than 100 employees starting in January next year. It also introduced "Blue Seed IRP," an individual retirement pension, allowing the self-employed, labor providers, platform workers, and freelancers to participate in the public fund-type retirement pension.
Blue Seed, launched in 2022, is Korea's first public fund-type retirement pension. It pools contributions paid by individual small and medium-sized enterprises into a single fund managed professionally. The scheme was designed to allow even small workplaces to receive stable asset management services by leveraging economies of scale. The service handles everything from enrollment support to fund management and system operation.
Since its launch, Blue Seed has grown to about 190,000 subscribers and roughly 1.9 trillion won in accumulated funds. Its annual returns were 6.97% in 2023, 6.52% in 2024, and 8.67% last year. The combination of the stability of public institution operation and the asset management capabilities of professional operating agencies is cited as the backdrop for its growth.
Unlike a typical IRP, in which subscribers directly select products, Blue Seed IRP is characterized by providing professional asset allocation and risk management services based on a public fund management framework. The aim is to reduce not only the gap arising from workplace size but also the retirement income void created by types of employment.
The service also strengthened on-site promotion in line with the expansion of eligibility. On the 22nd of last month, it held an event at FRONT1 in Seoul to mark the expansion of eligibility and the launch of Blue Seed IRP, presenting plaques of appreciation to newly enrolled employers and subscribers. It also visited Gongdeok Station and startups housed at FRONT1 to explain the revised system and enrollment procedures.
"Blue Seed's achievements are the result of the government's policy support, the service's stable operation, collaboration with professional operating agencies, and the trust of employers and subscribers," said Park Jong-gil, president of the Korea Workers' Compensation & Welfare Service. "We will develop it into Korea's leading public fund-type retirement pension that all citizens can trust and entrust with their savings."
