Korea reviews pension rules after foreign nationals qualify with just one month of payments
The government is considering tighter checks on retroactive pension contributions after foreign residents used them to meet the 10-year eligibility threshold.
A person walks into a National Pension Service office in Seodaemun District, western Seoul, on June 29.NEWS1
The government is reportedly reviewing national pension rules following controversy over cases in which some foreign nationals qualified for old-age pensions — despite contributing to the system for as little as a month.
An official from the Ministry of Health and Welfare said it is "examining ways to improve the retroactive contribution system to prevent misunderstandings over its use by foreign nationals," according to Yonhap reports on Friday.
Pension authorities are reportedly considering measures to prevent abuse, including taking into account the length of foreign nationals' actual residence in Korea and the period of actual contributions, as well as strengthening verification of documents issued overseas.
The review follows reports about cases of foreign nationals qualifying for old-age pensions after making retroactive contributions for periods when they were not working. Old-age pensions require at least 10 years, or 120 months, of contributions. Some were found to have contributed to the national pension for just a month before using the system to meet that requirement.
The retroactive contribution system allows people to pay premiums for past periods when they were exempt from making contributions due to unemployment, business closures or other circumstances. Introduced in 1999, the system was expanded in 2016 to allow people, including spouses without income and recipients of basic livelihood security, to make retroactive contributions for previously excluded periods of up to 119 months.
Foreign nationals can also make retroactive contributions for up to 10 years of eligible past periods, provided they were registered as foreign residents in Korea during the periods they seek to cover.
Applications for retroactive contributions have recently increased among foreign nationals with residency visas, including F-2 resident, F-4 overseas Korean, F-5 permanent resident and F-6 marriage migrant visas, according to Yonhap reports. There's also a particular rise in applications from ethnic Koreans from China.
A visitor receives counseling at the National Pension Service’s office in Seodaemun District, western Seoul, on June 29.NEWS1
In one case, a Chinese national entered Korea on the H-2 visa — a work and visit visa for ethnic Koreans — and contributed to the national pension for one month before reaching age 60. The individual, who was initially eligible for a lump-sum refund, made retroactive contributions covering 119 months to meet the 10-year threshold and is now receiving a monthly old-age pension. The lump-sum refund allows eligible foreign nationals who leave Korea or reach pension eligibility age without meeting the minimum contribution period to reclaim their contributions.
In another case, a Chinese national contributed for one month while working as a day laborer in construction and received a lump-sum refund upon leaving Korea.
The individual later returned to Korea, contributed for another month and added one more month through continued voluntary coverage. The person repaid the previous lump-sum refund and made retroactive contributions for 119 months, securing a total contribution period of 121 months and now receiving an old-age pension.
A case involved a Chinese national with an F-5 permanent resident visa who had contributed to the national pension for nine months. After becoming ineligible for a lump-sum refund, the individual made retroactive contributions covering 128 months and applied for an early old-age pension. The individual now receives the pension while living in China.
The National Pension Service's charter is displayed at a National Pension Service office in Seodaemun District, western Seoul, on May 18, 2025.NEWS1
The cases have raised questions about whether the use of retroactive contributions is consistent with the system's original purpose of helping people with gaps in their contribution histories, such as those who stopped working to raise children or lost their jobs, qualify for pension benefits.
Concerns have also been raised over difficulties in verifying foreign nationals' eligibility for retroactive contributions.
Korean authorities have limited access to records needed to verify a person's past eligibility, a spouse's national pension contribution history or the person's immigration status at the time. Family and marriage documents issued by different countries also vary in format, making verification difficult.
Managing pension recipients living overseas poses another challenge. If authorities are unable to promptly confirm a recipient's death abroad, pension payments could continue or problems could arise in administering survivor pensions.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
