Foreigners who stay in South Korea for only a short period will no longer be able to exploit the system to receive pension benefits by making retroactive contributions to the National Pension. The Ministry of Health and Welfare and the National Pension Service announced that they have significantly strengthened the requirements for foreign contributions, shifting the criteria from mere registration to actual residency, and will implement a reciprocity principle that grants benefits only to foreigners from countries that allow contributions for their own citizens.
The new regulations, which took effect on August 31, aim to prevent abuse of the pension system. The National Pension's retroactive contribution system allows individuals who have been unable to pay premiums due to unemployment or leave to make up for those missed payments later.
The key change is the complete overhaul of the criteria for 'domestic residency' for foreign contributors. Previously, foreigners could make contributions as long as they maintained their registration and residency status, leading to concerns that some were taking advantage of South Korea's generous pension benefits while actually residing abroad.
Under the revised guidelines, foreigners applying for retroactive contributions must now provide proof of their marriage status as well as an 'immigration record.' Notably, only months in which the individual has resided in South Korea for '15 days or more' will be recognized for contributions, starting from the month of entry to the month of departure.
Furthermore, the Ministry plans to apply the principle of reciprocity to foreign contributions through legislative amendments. This principle means that rights granted to foreign nationals will be equivalent to those granted to South Korean citizens by their respective countries.
Currently, reciprocity applies only to National Pension enrollment and lump-sum payments, but in the future, only foreigners from countries that recognize contributions for their citizens living abroad will be allowed to make retroactive contributions to the National Pension.
Additionally, the government will enhance oversight of overseas beneficiaries. The frequency of checks to confirm the survival of overseas recipients will increase from once a year to twice a year to prevent fraudulent claims.
Minister of Health and Welfare Jeong Eun-kyeong emphasized, "The National Pension is a system designed to secure the retirement income of citizens residing in South Korea, and we will ensure that there are no cases of abuse, such as receiving pensions while only temporarily residing in the country."
Kim Seong-joo, Chairman of the National Pension Service, also stated, "We will strengthen post-management of pension beneficiaries by expanding the exchange of death records between countries and shortening the verification period for entitlement."
* This article has been translated by AI.
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