In order to reduce the burden for the company and the employer, a mid-term settlement of severance pay was introduced.

– A mid-term settlement of severance pay is to pay severance for the period of
continuous work the employee has provided even before retirement. In case of mid-
term settlement, the continuous period of work will be newly-calculated from the day
the mid-term severance pay was settled.
– Other conditions such as those concerning promotion, incentives or paid leave will be
considered as continuous even after the mid-term settlement of severance pay.
There is also a severance pay insurance system:
– The severance pay insurance allows the worker to receive severance pay at retirement
as bulk payment or as pension;
– In this case, the amount of severance pay to be received as bulk payment must not be
less than the severance payment of the severance pay system.