"Work One Month in Korea, Get a Lifetime Pension?"... The Truth Behind the National Pension 'Foreigners Giveaway' Controversy

Extreme Cases Are Rare, but Foreign Catch-Up Payment Applications Triple in Two Years

Review Criteria Tightened to Actual Residency and Reciprocity Principle Strictly Enforced

The government has conducted a comprehensive investigation in response to the so-called “foreigners’ pension investment strategy” controversy—wherein some individuals are said to pay 119 months’ worth of National Pension Service (NPS) premiums in a lump sum after working for just one month in Korea, thereby receiving lifelong pension benefits. The results revealed that, among all foreigners, only three such cases actually exist.

Citizens are coming and going at the Comprehensive Counseling Office of the Seoul Northern Regional Headquarters of the National Pension Service. Yonhap News.

According to a full survey conducted by the Ministry of Health and Welfare and the National Pension Service on September 2, which involved cross-checking immigration records, there were just three foreigners (including overseas Koreans) who met the criteria for “enrollment after one month plus lump-sum payment for 119 months.” Of these, only one individual—an overseas Korean currently residing in Korea—is actually receiving an old-age pension. This recipient lived in Korea throughout all 119 months of the required period. The other two individuals were also found to have resided in Korea. One was the spouse of a Korean national, and the other was an overseas Korean who had first acquired Korean citizenship and later obtained foreign nationality; both spent the entire back payment period residing in Korea. They currently maintain their eligibility but are not receiving pension payments.

Similar patterns were observed even in early examples of the system’s introduction. For instance, a permanent resident who paid back 128 months’ worth of premiums before the 119-month cap was instituted in 2020—and is now receiving an early old-age pension in China—spent 126 out of those 128 months actually living in Korea. This disproves the widespread perception that short-term foreign residents secure pension rights by making a large lump-sum payment and then leaving the country.

Although such extreme cases are few, the need to strengthen the system as a whole remains. According to data submitted by the National Pension Service to Assemblyman Kim Gyoheung of the National Assembly’s Health and Welfare Committee, the number of foreigners applying for back payments jumped from 530 cases in 2023 to 1,517 in 2025—nearly a threefold increase within two years. The trend accelerated further in the first half of this year, with 994 new applications already received. Of all applicants, 79.7% were identified as Chinese Koreans. The proportion of short-term subscribers—those with less than one year of premium payment before making a back payment—also increased notably, rising from 15 individuals in 2021 to 60 in the first half of this year.

On September 1, President Lee Jaemyung ordered strict countermeasures at a Cabinet meeting, instructing the swift refinement of the system based on the principle of reciprocity and through subordinate regulations. The Ministry of Health and Welfare and the National Pension Service immediately revised internal guidelines, shifting the standard for reviewing back payments from simple maintenance of residency status to actual residence in Korea. According to the revised plan, foreigners applying for retroactive payments will be required to provide evidence of their entry and exit records. Only months during which they have resided in Korea for at least 15 days will count as periods of actual residence. Furthermore, through legislative amendments, the government will strictly enforce reciprocity—allowing retroactive payment eligibility only for citizens of countries that extend the same right to Korean nationals living abroad. The authorities also plan to strengthen overall institutional safeguards, such as by increasing survivor checks for overseas beneficiaries from once to twice per year and closing loopholes in related areas including dependent family pensions.

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