Guide to the National Pension for Foreigners
The text of this guide was prepared by the National Pension Service.
About the National Pension Scheme:
The National Pension Scheme is a social security system implemented by the Korean government to ensure a stable livelihood by collecting contributions and paying pension benefits for the insured or their dependents, and to prepare for retirement or unexpected calamities such as disability and death.
Compulsory Coverage of the National Pension Scheme:
Like Korean nationals, foreigners aged between 18 and 60 who reside in Korea are subject to the compulsory coverage of the National Pension Scheme. Foreigners whose countries do not cover Korean nationals under their public pension schemes, however, are excluded from coverage under the NPS.
Despite the above provisions, if there are relevant provisions under the Social Security Agreement between Korea and any foreign country, those provisions will be applied.
Payment Contributions:
For workers, the employees and their employers should each make contributions for the employees amounting to 4.5% of the standard monthly income respectively, based on the employees’ earned income, for a total contribution of 9% of the employee’s monthly income.
Individually insured persons should make contributions amounting to 9% of their reported standard monthly income.
There is no discrimination in terms of the contribution rate between foreigners and Koreans. The payment should be made no later than the 10th day of the following month.
Benefits
If foreign insured persons are entitled to an Old-age, Disability, or Survivor Pension, they will receive pension benefits according to the same standards as Korean nationals.
Old-age Pension: The Old-age Pension is paid monthly to those whose insured period is 10 years or more andare over 60 years old. The pensionable age will increase by 1 year every five years, starting from the year 2013, until it reaches 65 in 2033.
Disability Pension: The Disability Pension is paid to those with a disability after the treatment of diseases or injuries incurred during the insured period, according to the degree of their disability. Annuities will be paid to those with 1st, 2nd and 3rd degree disabilities and lump-sum benefits will be paid to those with 4th degree disabilities.
Survivor Pension: If currently insured persons or pensioners are deceased, a Survivor Pension will be paid every month to their surviving dependents whose livelihood was supported by the deceased person.
Lump-sum Refund
In principle, a lump-sum refund is not paid to foreigners. However, in the case of foreigners meeting any any of the following criteria, when they leave Korea or reach the age of 60, a lump-sum refund equivalent to the amount of contributions paid plus the fixed interest is paid to them, or to their survivors if they should die:
① A foreigner whose home country has concluded a social security agreement with Korea to secure benefit rights by combining the insured period in each country.
② A foreigner whose country grants Koreans a benefit corresponding to a lump-sum refund.
③ A foreign worker whose visa is either E-8 (Employment for Training), E-9 (Non-professional Employment), or H-2 (Visiting Employment).
Countries eligible for lump-sum refunds (44 Countries)
Via Reciprocity: Belize, Grenada, Nigeria, Barbados, Saint Vincent and Grenadine, Zimbabwe, Cameroon, Congo, Thailand, Togo, Venezuela,Ghana, Malaysia, Vanuatu, Bermuda, Sudan, Sri Lanka, Switzerland, El Salvador, Jordan, India, Indonesia, Kazakhstan, Kenya, Trinidad and Tobago, The Philippines, Hong Kong, Turkey, Columbia, Tunisia, Uganda, Bhutan.
By Agreement: Germany, U.S., Canada, Hungary, France, Australia, Czech Republic, Belgium, Poland, Slovakia, Bulgaria, Romania, Austria.
Applying in Korea (before departing Korea):Application form, IDs (passport, Alien Registration Card), bankbook, plane ticket.
Applying overseas (after departing Korea): Application form (notarized by a notary agency of the country in which you reside and attested to by the Korean Consulate or Embassy). A copy of passport. A copy of bankbook.
When you apply for a lump-sum refund through an agent in Korea, the application must be submitted only by mail in order to avoid extra administration fees and incorrect or false applications.
Application for Lump-sum Refund at the Airport
Who can apply: A foreigner who is scheduled to depart for his own country through Incheon International Airport within a month of his/her application.
Airport Payment is applicable only if the flight’s departure time is between 11:00 through 24:00 on weekdays. After applying for the Lump-sum Refund at a NPS regional branch, receive a “Direction for Payment of Lump-sum Refund” from Incheon Airport Office on the date of departure.
Receive a “Receipt of Currency Exchange” from Shinhan Bank Incheon International Branch after handing in “Direction for Payment of Lump-sum Refund.”
You will be eligible to receive the Lump-sum Refund after going through the immigration departure procedure.
Gwangju Regional Office
Zip Code: 506-724
Address: 3rd Floor, Kukminyeongeum Gwangjuhoegwan Bldg. (국민연금 광주회관), 1582-
4 Usan-dong, Gwangsan-gu, Gwangju
Phone: 062-958-2075
Fax: 062-455-3002
How to get there: Get on Bus No. Songjung 29, Chumdan 70, 20, Bongsun 37. Get off at Station of Ilsin Apt. or Honam Hospital. If you get off at the station of Ilsin Apts., Walk straight about 200 meters to Honam Hospital. You can find Kukminyeonkum Gwangju Building around Kukmin Bank or Honam Hospital.
Dong-Gwangju Regional Office
Zip Code: 501-025
Address: 8th Floor, Amore-Pacific Building, 5 Gumnamro, Gwangju
Phone: 062-230-0789
Fax: 062-455-3022
How to get there: From Gwangju Station, it’s about 15 minutes toward the Amore-Pacific Building walk.
How to get there by public transportation:
① Bus: No 19, 38, 39, 57, 70, 79, 160, 170, 180, 180-1, 1187, get off the bus at Lotte
department store
② Subway: Get off at Gumnamno 5-ga station, take exit No. 1. It takes about two
minutes.
Buk-Gwangju Regional Office
Zip Code: 500-864
Address: 1-2nd Floor, Songgang Bldg. (송강빌딩), (33-43 Yu-dong), 291 Geumnam-ro, Buk-gu, Gwangju.
Phone: 062-520-8124
Fax: 062- 455-3042
How to get there: It is across from HanGuknochong (한국노총) at Yudong Intersection. Go to the second floor.
If you need more information, visit http://english.nps.or.kr