[Exclusive] "Are We Supporting Chinese Families Too?"... National Pension Handouts Extend to Overseas Parents and Children of Foreigners

[The Flaws in the National Pension System] ① Additional Dependent Family Benefits for Foreigners
"Growing Concerns Within About Supporting Even Elderly Chinese Beneficiaries"
KRW 300,000 Annually for Spouses, 200,000 for Children and Parents...

"Korea has earned a reputation among Chinese nationals as a 'pension paradise.' The next generation may ultimately have to support not only Korean seniors but Chinese ones as well."

It has been revealed that some foreigners, after working in South Korea for just one month, pay backdated National Pension Service (NPS) contributions for the following 119 months and then register their spouses, children, or parents residing abroad as dependents to receive additional family allowances, thus qualifying to receive a lifelong old-age pension. Controversy over the “one-month enrollment followed by 119 months of back payments” is now extending beyond individuals’ own pensions, into “NPS support for overseas family members.”

National Pension Service

According to reporting by The Asia Business Daily on the 26th, there have been a series of cases in which Chinese nationals who obtained qualification for the old-age pension through back payments are also applying for dependent family allowances. The National Pension Service provides a dependent family pension, which is a type of family allowance, to pension recipients who are responsible for the livelihood of a spouse, children under the age of 19, or parents aged 63 and older. As of January 2026, the annual payment amounts are 306,630 won for a spouse and 204,360 won per child under 19 or parent aged 63 or older.

The issue is that this dependent family pension is applied not only to Korean citizens, but also to foreign recipients under the same terms. Foreigners who meet certain requirements can register dependents and receive additional pension payments. Notably, the National Pension Service explains that there is effectively no provision limiting payment based solely on whether the dependents have any history of residence or entry into Korea.

Therefore, as highlighted by earlier “one-month enrollment and 119-month back payment” incidents, foreigners living abroad can increase their monthly pension by registering dependents while collecting their old-age pension. For example, if one supports a parent, spouse, and child, an additional 715,350 won per year can be received in addition to the regular pension. The amount of the dependent family pension increases every year by the same percentage as the basic pension; this year, it rose by 2.1%. The NPS has no separate limit on the number of people eligible for the dependent family pension.

As a result, internal criticism has arisen within the agency that the structure of dependent family pension payments does not align with the original intent of the system. Some question the appropriateness of granting family allowances—which are funded by contributions from Korean citizens—to foreign recipients’ spouses and children, who have never contributed to Korea’s economy through taxes or work. In particular, when foreign recipients live abroad and have their pensions remitted overseas, there are additional overseas remittance fees and currency conversion costs. It is also difficult to verify whether dependents living overseas actually maintain a real dependent relationship with the recipient.

An NPS official stated, "There is significant stress from complaints during the process of requesting required documents to verify actual dependent relationships. In some cases, applicants even resort to threats, saying they will publicly share the details of specific branch offices in online communities if their requests are denied."

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

This is why voices are calling not only for a review of the back payment system for foreigners, but also for stricter eligibility criteria for the dependent family pension. Given that foreigners can qualify for pensions through short-term enrollment and back payments and can also receive dependent family pensions for family members living abroad, a comprehensive review of the entire NPS system for foreigners is considered necessary. The Ministry of Health and Welfare is currently reviewing the status of how foreigners are using the back payment system, as well as overseas cases, to consider possible improvements, following President Lee Jae-myung’s remarks at the Cabinet meeting on the 25th that "swift action is needed to fill loopholes whenever they are discovered."

Meanwhile, as the number of NPS pension recipients rapidly increases each year, annual pension disbursements are projected to exceed 50 trillion won this year. The disbursed amount entered the 30 trillion won range in 2022, surpassed 40 trillion won in 2024 after just two years, and last year reached 49.66 trillion won.

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