[Exclusive] "Are We Supporting Chinese Families with Hundreds of Thousands of Won per Person?"...National Pension Expands Family Allowances to Foreign Parents and Children Living Overseas

[NPS System with Loopholes] ① Foreign Nationals Also Qualify for Additional Family Pension
"Growing Concerns Over the Need to Support Elderly Chinese"
Spouse: 300,000 won per year, Children and Parents: 200,000 won... No Limit on Number of Beneficia

"Word has spread among Chinese citizens that Korea is a 'pension hotspot.' Now, it seems the younger generation may end up supporting not only Korean but also Chinese seniors."

It has been revealed that some foreigners who work just one month in South Korea, then retroactively pay 119 months of National Pension Service (NPS) contributions, register their spouses, children, and parents—even if those family members live overseas—as dependents, thereby receiving additional pension benefits for a lifetime. The controversy over joining for one month and making a lump-sum retroactive payment for 119 months ("1 month enrollment + 119 months catch-up") is now expanding beyond personal pensions to include 'NPS support for family members living overseas.'

National Pension Service

According to a compilation of The Asia Business Daily's coverage on the 26th, instances have been confirmed in which Chinese nationals—after qualifying for old-age pension benefits via retroactive payment—have gone on to claim dependent family pension benefits as well. The National Pension Service provides these additional 'family allowance'-type benefits to pension recipients who have a spouse they support, children under 19, or parents aged 63 and above. As of January 2026, the annual amount is 306,630 won per spouse and 204,360 won per child under 19 or per parent over 63. The problem is that these dependent benefits are applied equally to foreign beneficiaries, not just Korean nationals. If foreigners meet certain criteria, they can register their dependents and receive additional pension payments. According to NPS, they do not have a strong legal basis to restrict payouts simply because registered dependents do not reside in Korea or have never entered Korea.

As in previously reported cases of '1 month enrollment + 119 months catch-up,' it is thus possible for foreigners living abroad, who are receiving old-age pensions, to increase their monthly pension amount by registering dependents. If one supports one parent, one spouse, and one child, the total additional annual amount on top of the basic old-age pension amounts to 715,350 won. The dependent family pension benefit is increased every year in proportion to the standard pension increase; this year, the amount rose by 2.1%. The National Pension Service does not place any separate limit on how many dependents can receive the benefit.

As a result, there are growing voices even within the NPS itself that the current payout structure for dependent family pension benefits does not align with the original purpose of the policy. Specifically, there are concerns about the appropriateness of paying a family allowance from the pension fund—built from contributions by Korean citizens—to the spouses or children of foreigners who have never contributed to the Korean economy through taxes or work. In particular, if a foreign recipient returns to their home country and receives benefits via an overseas account, this incurs additional wire transfer fees and currency exchange costs. Furthermore, it is difficult to verify whether the declared dependent relationship is in fact ongoing with family members living abroad. An NPS official stated, "There is significant administrative stress involved in obtaining required documentation to prove genuine dependency relationships. In some cases, if requests are denied, there have even been threats to reveal specific NPS branch offices’ names within certain communities."

President Lee Jae-myung is speaking at the Cabinet meeting at the Blue House on the 25th. Photo by Blue House Press Photographers Group

For these reasons, there are calls to overhaul not only the retroactive payment system for foreigners but also the criteria for dependent family pension payouts. Since it is possible for foreigners to acquire pension eligibility through short-term enrollment and retroactive contributions, and even to have dependents living abroad receive family pension payments, a comprehensive review of the foreigner pension system is needed. The Ministry of Health and Welfare, following President Lee Jae-myung’s remarks at the Cabinet meeting on the 25th—“If any loopholes are found, they must be closed as swiftly as possible”—is currently reviewing data on foreign beneficiaries’ use of retroactive payment provisions and studying relevant cases from abroad to develop improvement plans.

Meanwhile, as the number of NPS pension recipients continues to rise rapidly each year, total benefit payouts are projected to surpass 50 trillion won this year. Since entering the 30 trillion won range in 2022, annual payouts exceeded 40 trillion won in 2024—just two years later. Last year’s total was 49.66 trillion won.

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