National Pension to Cover 'First Month's Premium' for Young People and Expand 'Past Payment' Eligibility... Amendment to Enforcement Decree and Rules Pre-announced

One-Month Premium Covered for Ages 18 to 26; Advance Applications Accepted

Pension Payment Record Enables Eligibility for "Past Payment" Option

The government has finalized detailed implementation guidelines for the "Youth First-time Pension Premium Support Program," which encourages young people to enroll in the National Pension Service early and increase their future pension benefits.

National Pension Service Happy Pension Hall. The Asia Business Daily DB.

According to the Ministry of Health and Welfare on September 23, a partial amendment to the Enforcement Decree and Rules of the National Pension Act has been pre-announced for legislation. After collecting public comments until November 2, the amended regulations will take effect starting January 1, 2027. This is a follow-up measure to revise detailed procedures and forms in line with the amendment of the higher law. Under this program, individuals aged 18 to 26 can apply at a branch office of the National Pension Service, via the mobile app, or through the official website. After an eligibility review, applicants will receive full support for one month's premium based on the minimum standard monthly income (currently approximately 42,000 won). Those who turn 18 on January 1, 2027—those born in 2009—will be eligible. There is also a special provision allowing those under 18 to apply in advance.

Depending on eligibility at the time of application, those already enrolled will receive direct premium support, and even those who are not currently enrolled or have lost eligibility will have one month added to their enrollment period. Establishing an enrollment record with state support means that even if premium payments are later deferred due to academic pursuits or military service, individuals will qualify for "past payment" of deferred premiums (up to a maximum of 119 months) if they start working or earning income at a later date. If individuals choose to pay these past-due premiums before the age of 59, the total enrollment period increases, which in turn raises the amount of pension they will receive in old age.

Because the National Pension Service is structured to be advantageous the longer an individual is enrolled, some so-called "Gangnam mothers" and National Pension Service employees have been known to make a single premium payment as soon as their child turns 18, then immediately request a deferral to create an enrollment history—treating it as a "financial life hack." As criticism about "pension inequality" due to differences in information and financial capacity emerged, President Lee Jaemyung stated in December last year, "If only a small, fast, well-informed group benefits while the rest do not, is that proper policy?" and called for reforms to the system. In response, the National Pension Act was amended in April so that the state covers the first premium payment, and the guidance has now been further clarified by this amendment to the Enforcement Decree and Rules.

A Ministry of Health and Welfare official stated, "This policy is designed for the state to set the first step, enabling young people to enter the pension system early," and added, "We will complete the sub-laws without delay and thoroughly prepare guidance and procedures so that no eligible youth misses out on these benefits."

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