A recent case of foreign nationals making a one-time payment for ten years' worth of pension contributions after just one month of work has sparked controversy in South Korea. This practice allows them to receive a lifetime old-age pension.
On August 26, a post by an employee of the National Pension Service appeared on the anonymous workplace community 'Blind.' The author expressed frustration, stating, "Chinese nationals are applying for pensions in droves. Our children will have to support not only Korean seniors but also Chinese seniors. It's devastating."
The controversy centers around the National Pension's deferred payment system, which allows individuals who have not paid contributions due to unemployment or other reasons to make payments later to extend their enrollment period. Originally designed to protect the retirement of those with interrupted careers or non-working spouses, the system has loopholes that foreign nationals on work visas, such as the H-2 visa, can exploit.
For instance, a Chinese national was able to enroll in the National Pension for just one month, then made a lump-sum payment for the maximum allowable 119 months of contributions (approximately 10 million won) and is now receiving monthly old-age pension payments after turning 60.
Moreover, the number of foreign deferred payment applications surged from 43 in 2015 to 848 in 2024, with payments to qualified Chinese beneficiaries totaling 10.1 billion won.
As news of this practice spread online, reactions included, "If this is true, it's insane. It needs to change," and "If you pay just 10 million won, you get 200,000 won a month for life. If this rumor spreads, everyone will come here." Others expressed concern about having to support Chinese seniors, calling it a tribute to a foreign nation.
Many netizens criticized the government, asking, "Is there no way for us to benefit from Chinese money?" and questioning when the president would address the issue.
In response to the growing controversy, President Lee Jae-myung directed relevant ministries, including the Ministry of Health and Welfare, to implement stringent reforms to the foreign national pension deferred payment system during a Cabinet meeting.
President Lee stated, "It may be contradictory for short-term foreign residents to qualify for the pension deferred payment system," and called for a swift overhaul of the system to significantly strengthen the minimum domestic enrollment period, residency qualifications, and actual residency requirements for foreign nationals applying for deferred payments.
* This article has been translated by AI.
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