"Working One Month in Korea, Receiving a Lifetime Pension"... National Pension Service Responds to Foreigners' Additional Payment Loophole

'Additional Payment' Meant to Aid the Vulnerable
Now Used as a Short-Term Pension Strategy by Foreigners
Ministry of Health and Welfare: "Reforms Under Review"
Fraudulent Claims and Verification Gaps among Overseas Residents Also Under Scrutiny

The Ministry of Health and Welfare has begun investigating the current state of the National Pension Service’s "follow-up payment (additional payment)" system and considering reforms, after criticism mounted that the system, originally introduced to help cover retirement income gaps for vulnerable groups such as full-time homemakers with career interruptions, has been misused by foreigners as a means to quickly secure short-term pension eligibility.

On August 21, the Ministry of Health and Welfare stated, "We are comprehensively reviewing improvement measures based on the current use of the additional payment system by foreigners and cases from major countries overseas," adding, "If necessary, we will pursue system reforms, including amendments to the relevant laws." The ministry has launched a system review in response to growing controversy after reports that foreigners have joined the National Pension Service for as little as one month, paid up to 119 months' worth of premiums in a lump sum, and received monthly old-age pension payments while living abroad, thus distorting the original intent of the system.

Foreigners who have a history of participation in the National Pension Service and who had exception periods (such as a non-earning spouse or other payment-exempt periods) during their time in Korea are eligible for additional payments. The maximum period for which lump sum additional payments can be made is 119 months. Under current law, foreigners cannot join the voluntary pension (which allows people who are neither workplace subscribers nor regional subscribers to join the pension system and receive benefits). However, if they have even one month of enrollment history, they can secure pension eligibility through the additional payment system.

Taking advantage of the fact that a lifelong pension is possible simply by meeting the minimum 10-year (120 months) enrollment requirement through this additional payment system, it is reported that such additional payments are frequently made especially by foreigners holding visas such as residence (F-2), overseas Korean (F-4), permanent resident (F-5), and marriage migrant (F-6). Some of these cases involve individuals living overseas and receiving monthly pension payments without interruption.

These circumstances have led to criticism that the current use of the additional payment system contradicts its original purpose, which was to protect pension rights for career-interrupted homemakers and low-income workers. There are also significant flaws regarding verification and post-management. For foreigners, it is difficult for service desk employees to rigorously verify the authenticity of family and marital documents issued overseas. Additionally, if a pension recipient returns to their home country, there may be delays in detecting their death, potentially resulting in unlawful continued old-age pension payments or improper transition to a survivor’s pension.

Pension authorities are reportedly considering introducing residency or actual payment period requirements, as well as significantly reinforcing official verification of documents issued by foreign governments.

This content was produced with the assistance of AI translation services.