Only three foreign applicants made single month of pension contributions, gov't probe finds
A government review found all three applicants had lived in Korea during their retroactive contribution periods, while officials tighten residency checks.
A visitor walks out of a regional office of the National Pension Service in Seodaemun District, western Seoul, on June 29.NEWS1
Despite public uproar over the alleged abuse of Korea’s pension fund by foreigners exploiting a loophole in the system, government data released on Wednesday showed that only three foreign nationals have applied for lifetime pensions after working just one month in the country.
Last month, Rep. Kim Kyo-heung of the ruling Democratic Party reported a near tripling in the number of foreign nationals applying to make retroactive contributions to the pension system in just two years, climbing from 530 in 2023 to 1,517 in 2025.
This sparked reports warning that foreign nationals could, in theory, receive lifetime pensions after paying just a single month of regular premiums and 119 months of retroactive contributions under current laws.
Even President Lee Jae Myung weighed in on the controversy, demanding that pension eligibility rules be tightened during an Aug. 25 Cabinet meeting.
A government probe, however, found that only three such cases of people applying for lifetime pensions after paying just a single month of regular premiums and 119 months of retroactive contributions — and all three individuals had lived in Korea for the periods they paid for.
Of the three individuals, only one actually receives an old-age pension, according to the Ministry of Health and Welfare on Wednesday. The recipient, an overseas Korean, lived in Korea throughout the entire 119-month period covered by the retroactive contributions.
The other two are the spouse of a Korean national and an overseas Korean who previously held Korean citizenship before acquiring foreign nationality. Both also lived in Korea throughout their entire retroactive contribution periods, according to the government analysis.
Neither is currently receiving a pension, and both remain enrolled in the National Pension.
The findings seem to run counter to fears that foreigners can briefly work or live in Korea, leave the country and then use retroactive contributions to qualify for a lifetime pension.
The Ministry of Health and WelfareYONHAP
The retroactive contribution system allows National Pension subscribers to pay premiums later for periods when they were unable to make contributions due to unemployment, business suspension, career breaks or other reasons.
In most cases, a person needs at least 120 months, or 10 years, of contributions to qualify for an old-age pension. Retroactive contributions can be used to fill gaps in that minimum contribution period.
The retroactive system was introduced in 1999 without a limit on the number of months it could cover, but it was fixed in 2016 so that eligibility could be expanded to include periods of exemption from contributions, including those of spouses without income.
A legal revision in December 2020 finally capped retroactive contributions at 119 months.
The government's latest review also examined other cases involving short periods of regular contributions followed by lengthy retroactive payments.
One overseas Korean made one month of regular contributions, repaid a previously received lump-sum refund and then paid 119 months of retroactive contributions. The person had lived in Korea for 116 of those months.
Another permanent resident made retroactive contributions for 128 months before the 119-month cap was introduced. The person, who now receives an early old-age pension in China, had lived in Korea for 126 of the 128 months covered by those payments.
Kim Sung-joo, chair of the National Pension Service (NPS), said the findings show that reports of foreigners working for just one month and then receiving a lifetime pension do not reflect how the system actually works because such recipients still have to pay all 120 months of premiums.
The National Pension Service's headquarters in Jeonju, North JeollaYONHAP
Kim also cautioned against allowing the controversy to fuel hostility toward people from particular countries or overseas Korean communities.
However, he added that the system should be improved in line with the principle of social insurance — namely, if one has an income, one should pay into the system.
Nevertheless, critics of the system point to some worrying numbers.
According to NPS data released by Rep. Kim last month, applications by foreign nationals rose from 530 in 2023 to 1,517 in 2025. Another 994 applications were filed in the first half of this year.
Ethnic Koreans from China accounted for 792 of those applications, or 79.7 percent.
The number of foreign pension recipients who made fewer than 12 months of regular contributions before making retroactive payments also increased from 15 in 2021 to 60 in the first half of this year.
Meanwhile, the number of foreigners who repaid lump-sum refunds they had previously received, made retroactive contributions and later received pensions climbed from 104 in 2021 to 520 in the first half of this year.
The numbers also expose gaps in administrative oversight.
Officials can face difficulties verifying family relationship documents issued overseas. Authorities may also fail to learn quickly that a pension recipient living abroad has died, which could result in continued payments after the recipient's death.
President Lee Jae Myung, center, speaks at a work report by the Ministry of Health and Welfare and other agencies at the Blue House in central Seoul on July 16.JOINT PRESS CORPS
Experts said safeguards should be strengthened without portraying foreigners as a burden on Korea's social insurance system.
Actual residency and enrollment requirements should be strengthened to prevent short-term foreign residents from exploiting loopholes, according to Prof. Kim Yong-ha at Soonchunhyang University.
The Health Ministry and the NPS have since tightened eligibility requirements for foreign applicants, with greater emphasis on actual residence in Korea.
Periods eligible for retroactive contributions are now determined by how long an applicant has actually lived in Korea rather than simply how long the person held legal residency status, under NPS guidelines revised on Monday.
Foreign applicants must submit immigration records as well as documents proving marriage or other relevant family relationships.
A month will count toward the eligible period for retroactive contributions only if the applicant actually lived in Korea for at least 15 days that month. Retroactive contributions will not be allowed for periods when the applicant did not actually live in Korea.
The government also plans to introduce a reciprocity requirement for retroactive contributions by foreigners.
A visitor stands in the regional office of the National Pension Service in Seodaemun District, western Seoul, on March 18.NEWS1
Reciprocity already applies to National Pension enrollment and lump-sum refunds. Under the planned change, nationals of another country would be allowed to make retroactive contributions in Korea only if that country gives Koreans living there the same right.
Oversight of pension recipients living abroad will also be strengthened, with the government checking whether overseas recipients are alive twice a year, up from once a year currently.
It also plans to expand exchanges of death records with other countries to prevent improper payments.
Health Minister Jeong Eun-kyeong also said the ministry would prevent abuse of the system by short-term residents and others who enter the country briefly and then seek to receive pension benefits.
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.
